Central Boulevard site poised for a 6% CAGR through 2021

It could command a rent comparable to 2009 level.

The tender for a white site at Central Boulevard has closed with 7 bids received. The highest bid was submitted by IOI Properties (via Wealthy Link Pte. Ltd.) at S$2,568.69m (S$1,689 psf ppr).

This is the highest price paid for a white site and above earlier market expectations of c.S$1.5bn-1.8bn (S$1,012-1,200 psf ppr). The previous record was S$1,409 psf ppr set for Asia Square Tower 1 in Sep 2007.

At this price, CIMB reckons the cost to completion would be c.S$3,100-3,200psf of leaseable area. Based on an expected rental yield of 4%, the development, it said, would likely have to command a rent of S$12psf/mth or back to the 2009 level. This represents a CAGR of 6% p.a. for the next five years.

According to CIMB, the 10,868.7sqm (116,991sqft) site, adjacent to Asia Square Tower 1, can be built up to 50-storeys, and house up to 141,294 sqm (1,520,889 sqft) GFA. At least 100,000sqm (1,076,400 sqft) GFA or 70.77% must be allocated for office use. In addition, up to 5,000 sqm GFA must be set aside for retail use.

The development, it added, must also include a childcare facility with at least 500 sqm GFA. The balance can be used for office, commercial school, hotel, serviced apartment or residential uses