Frasers Centrepoint Limited wins first land bid in two years

It bought the Jiak Kim site for $955m.

Frasers Centrepoint Limited (FCL) won its first land tender in two years after buying the Jiak Kim site for $955m or $1,733 psf, the Urban Redevelopment Authority (URA) revealed.

According to Cushman & Wakefield, the second bid by Hong Leong is only 0.57% lower, one of the lowest spreads in recent history. FCL won amongst 10 bidders.

The site's price is also 39.9% higher than the Martin Place GLS site sold in June 2016 which has since been developed into Martin Modern, although the Jiak Kim site has an insignificant portion of commercial component amounting to 3.3% of the gross floor area (GFA).

Cushman & Wakefield research director Christine Li commented, "On the surface, the top bid looks aggressive, but with the additional 10% bonus GFA, the effective bid translates to about $1,580 psf ppr."

DBS Equity Research said the Jiak Kim site sits in between two upcoming MRT stations, Great World and Havelock, next to the Singapore river. The development would target the high-end market.

"This site marks the return of FCL in the Singapore property scene after the successful launch of its Seaside Residences though prices are somewhat lofty (as with all land bids now)," said DBS analyst Rachel Tan.

The next batched land tenders will close on 30 January 2018 for Chong Kuo Road, Handy Road and Sumang Walk (Executive Condo) land sites.