SINGAPORE (Aug 16): CapitaLand and City Developments Limited (CDL) jointly announced that they, in a joint venture (JV), have secured a mixed-use residential and commercial site in Sengkang Central for $777.78 million.
The bid was submitted on a Two-envelope Concept and Price Revenue tender system which works out to $923.60 per sq ft of gross floor area.
See: Sengkang Central GLS site draws seven bids
The JV intends to transform the 3.7-hectare site – the largest commercial and residential site awarded since 2015 – into an integrated community hub with 700 residential apartments, along with amenities and public transport facilities.
This integrated development is targeted to complete in 1H22.
The recent property cooling measures imposed on housing developers will not apply for this site acquisition.
Lim Ming Yan, president and group CEO of CapitaLand says, “This is our second acquisition of the week, as we gather momentum in replenishing our land bank. CapitaLand will continue to be disciplined and focused in our capital recycling efforts, by actively deploying the gains from our portfolio reconstitution strategy into higher yielding investments.”
See: CapitaLand wins bid for 2 prime Guangzhou residential sites for $409 mil
Sherman Kwek, group CEO of CDL adds, “Envisioned as a one-stop community hub, it will be integrated with a new bus interchange and connected to the existing Buangkok MRT Station. Various amenities and recreational facilities such as a hawker centre, childcare centre and civic plaza will be right at residents’ doorsteps, giving rise to a vibrant and bustling community.”
Shares in CapitaLand and CDL closed at $3.32 and $9.54, respectively.
