Why Fraser & Neave's $1.43b Yishun site bid was worth it

Plot adjacent to traffic-heavy NorthPoint.

FNN Properties has won a Housing and Development Board (HDB) land sales at Yishun, with a winning bid of $1.43bn (implied $1,078psf) or 48% higher than the next highest bidder (Far East at $731psf) out of total of 5 bidders, which according to OSK-DMG was also 36% higher than previous mix-use tender at Yishun Ring Rd site won by CEL Property ($794psf in Jan-13, yet to launch).

"The aggressive bidding by FNN is understandable as plot is adjacent to NorthPoint (cap value $2,415psf based on gross rental of $16.6psf) which has one of the highest average retail traffic count at 3.4mil per month," said OSK-DMG analyst George Koh.

"The ASP for residential is likely to be high at $1,800psf, but good plot location beside Yishun MRT should ensure good subscription in our view," he added.

"We strongly suspect the low number of bidders is driven by specifics of this site as it mandates a combination of Residential and Retail, plus a community centre and a Bus Interchange," he said further.