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By Cecilia Chow Friday, 03 September 2010 17:13

A new integrated development that will sit at the corner of Stamford Road and North Bridge Road in Singapore is likely to transform the City Hall neighbourhood. It will also bring a fresh lease of life to the century-old Stamford House, as well as Capitol Theatre and Capitol Building, which were built in 1929 and 1933 respectively. The close of tender for the commercial site August 18 saw 14 bids submitted. “I suspect this is the last knockout site in terms of location, and it could well be the last available commercial site within the Suntec City-Beach Road-Bugis location,” says Donald Han, managing director of Cushman & Wakefield. Ten companies participated in the tender, with some submitting multiple bids — Far East Organization, for one, submitted three bids and Wing Tai, two. CapitaLand submitted a bid, while its listed retail entity, CapitaMalls Asia, submitted one on its own. Other participants included a consortium led by Pua Seck Guan’s Perennial Real Estate Group, GuocoLand, Hong Kong-based Park Hotel Group, United Engineers and Malaysia’s YTL Corp. “The fact that there were multiple bids reflects the high level of interest in the project,” says Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic. It also shows that interested entities are pushing different schemes designed to pique the interest of the jury. Apart from the concept, Cushman & Wakefield’s Han expects the pricing to be “equally aggressive”, with bids in excess of S$300 million and in the S$600 psf per plot ratio (ppr) range. At S$600 psf ppr, the land price would still be lower than the S$1,069 psf ppr that a consortium led by City Developments Ltd (CDL) paid for the nearby 99-year leasehold South Beach site three years ago. However, the South Beach site is larger, with a higher plot ratio, a property consultant points out. CDL has indicated that the South Beach integrated project designed by Norman Foster will contain a mix of premium office space, luxury residences and hotel and shopping space. What’s more, the winning bidder for the Stamford Road-North Bridge Road site will have to retain and restore the three historically significant buildings, turn Capitol Theatre into an arts or entertainment-related performance venue and build an underground walkway with a retail scheme to link to the City Hall MRT station. At least 25% of the total gross floor area on the 1.43ha site has to be set aside for hotel use. While Raffles City across the street is busy, benefitting from its underground link to the City Hall MRT station, the Capitol Theatre-Capitol Building-Stamford House has been relatively forlorn, observes Mak. Concepts are likely to contain a mix of shopping, luxury hotel and interesting F&B outlets, with some including residential or office components, he forecasts. “Given its proximity to the City Hall MRT, which is an interchange, the developers see the potential of the area.” Mak is also anticipating bids to be in the S$300 million range. The submissions are based on a two-envelope system, with those tendering required to submit their concept proposals and tender prices in two separate envelopes. The winner will be announced at a later date.