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Singapore Property News

Hillview Rise GLS site draws nine bids

A residential site at Hillview Rise enjoyed a fair amount of interest from developers despite its technical requirements. It received nine tender submissions at the close of the government land sale (GLS) tender under a dual-envelope system.

Posted on 04-May-2018

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Hillview Rise GLS site draws nine bids

A residential site at Hillview Rise enjoyed a fair amount of interest from developers despite its technical requirements. It received nine tender submissions at the close of the government land sale (GLS) tender under a dual-envelope system.

JLL national director of research and consultancy Ong Teck Hui deemed the level of participation a reflection of "fair interest" from developers, given the tender conditions, which place a huge emphasis on construction productivity.

CapitaLand and City Developments Ltd (CDL) banded together to submit two separate tenders with different concept proposals. The last time the two heavyweights collaborated was more than 10 years ago when they jointly developed a residential project on a site in West Coast Park acquired in a collective sale.

They include a tie-up between Koh Brothers Development (a unit of engineering and construction group Koh Brothers) and Sing Holdings; a joint tender by Hoi Hup Realty and Sunway Developments; as well as a joint bid by Yanlord Land and Soilbuild Group.

Private entities controlled by Hong Leong Investment Holdings, namely Intrepid Investments and Garden Estates, also submitted a bid.

Three other developers went solo. They are CEL Development (a unit of construction group Chip Eng Seng), Qingjian Realty and CSC Land, the subsidiary of China Construction (South Pacific) Development.

Under the Concept and Price revenue tender system or two-envelope system launched last December, applicants for the 99-year leasehold site have to submit their concept proposals and tender prices in two separate envelopes. Only the envelopes containing concept proposals were opened on Thursday.

ZACD Group executive director Nicholas Mak projected that the top bid could range from S$388 million to S$431 million or S$900-1,000 per square foot per plot ratio (psf ppr).

He attributed the healthy participation rate - even with the two-envelope system - to the positive traits of the site: a manageable size, accessible via major expressways and just 430m away from Hillview MRT station.

There is also limited supply of new condominiums in the area for now, he added, although a few other vacant land parcels in the vicinity could be launched for sale in the future.

An adjacent land parcel, where The Hillier condominium project stands, was contested by 12 parties in April 2011. A nearby land parcel, which Kingsford Development secured in March 2012 and developed Kingsford Hillview Peak, drew seven bids at that time. The winning bids for the two sites were S$673 psf ppr and S$638 psf ppr respectively.

The concept proposals for the site will first be evaluated by a committee chaired by the Building and Construction Authority to be shortlisted.

The proposed development is to feature the adoption of Design for Manufacturing and Assembly (DfMA) concept, with the construction productivity concept and the level of prefabrication and integration across architectural, structural, mechanical, electrical and plumbing (MEP) works having a 75 per cent weightage of the evaluation criteria.

The other 15 per cent and 10 per cent of the evaluation criteria hinge respectively on construction management and the developers' track record.

At the second stage, the price envelopes of the proposals with acceptable concepts will be opened and the site will then be awarded to the one with the highest bid.

The 14,300 sq m plot at Hillview Rise affords a sizeable residential gross floor area of about 40,030 sq m, or about 535 condominium housing units.

The Urban Redevelopment Authority has said the site's regular configuration provides economies of scale to maximise productivity gains, thus making it a suitable test bed for innovative construction technologies or methods.

"The construction background and experience of many of the tenderers explains their interest in the tender notwithstanding a more protracted bidding process," Mr Ong said.

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