SINGAPORE (June 14): DBS is maintaining its “hold” call on Singapore Press Holdings with a target price of $3.39.
Elara 1 and Callisto 1 – subsidiaries of SPH and Kajima Development – emerged as the top bidder among 12 other bids for a new leasehold mixed development along Upper Serangoon Road at a price of $1.1 billion.
The bid was 1.2% more than the second highest bid, which was submitted by a JV between Far East Civil Engineering and Sekisui House.
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Adjacent to Woodleigh MRT, the site area is 273,842 sqf with a maximum gross floor area (GFA) of 958,450 sqf, implying $1,181 psf GFA. Close to 825 residential units can be built.
The site developer will set aside a maximum of 150,000 sqf for retail use and 88,000 sqf as a community focal point.
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The total gross development value (GDV) for this site is estimated to be about $1.63 billion.
In a Wednesday report, analyst Rachel Tan says, “The rare characteristic of a mixed-use development sitting on top of Woodleigh MRT station will spearhead the resurrection of the former cemetery site at Bidadari Estate. This mall, in our view, could represent the new ‘Junction 8’ at Woodleigh MRT station.”
“We are positive on the potential of this development as it is located right smack at Bidadari Estate, which according to government’s masterplan, is one of the new estates that will be built over time,” Tan added.
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Given SPH’s strong balance sheet, Tan believes that it will likely to fund the acquisition through bank loans and internal resources.
Shares of SPH are trading at $3.17 as at 11.10am.
