Breaking recent news is an announcement by the Urban Redevelopment Authority-URA that two companies have been awarded the tender for a commercial and residential site at Sengkang Central, Singapore. The two, City Developments Ltd-CDL and CapitaLand managed to beat their other two shortlisted counterparts to bag the winning bid prized at $777.8 Million which translates to $923.6 per square foot per plot ratio- (psf ppr). These companies are now gearing to set base on the 3.7 hectares of land which holds the title for the largest commercial and residential tender ever won since 2015.
Background history of the winning tenderers
The City developments Ltd was founded on September 7th, 1963 and in 1965 the company finished its first 200 housing unit project. From then on, the company continues to break new boundaries in its quest to acquire, develop and sell property.
On the other hand, one of Singapore’s most profound development companies is CapitaLand. With an unbeaten record and enviable portfolio, CapitaLand has built, serviced apartments, malls, homes, and offices spread across 150 cities in over 30 countries throughout the world. The company’s main works can be seen mainly in China and Singapore and slowly exploring other prime areas like Vietnam and Indonesia.
This joint venture aims at developing the awarded land into a one-stop shop with a total of 700 apartments, retail shops, hawker center, childcare areas, public rail and bus stop, and three floors housing the community club. The two companies intend to have this mega project completed by 2022.
Details of the Tender
The Sengkang Central tender project was unveiled on December 28th, 2017 and later closed June 21st, 2018. Seven concept proposals were forwarded by six companies with one of the companies forwarding two concept proposals. All participants were asked to present their tender prices in one envelope and the concept proposal in a different envelope.
At the shortlisting stage, the envelopes of the four successful contenders bearing the tender prices were opened. Thereafter the tenderer with the highest bid was awarded the rights to work on the project in question.
The project is considered prime owing to its favorable proximity to other Major sites in Singapore. For instance, the proposed community project will be located only 20 minutes away from the Central business district if you are driving and 25 minutes from the Dhoby Ghaut MRT Station.
Details regarding Concept Proposals
The Concept Evaluation Committee-CEC gave all six companies a chance to present their tenders before them. Thereafter, the CEC concluded that only four proposals were viable and were in line with all the requirements. The four shortlisted candidates included;
- The winners, City development Ltd and CapitaLand who set their bid at $777.8 Million
- Perennial Singapore and Qingjian Realty who proposed a bid of close to $682 Million
- Singapore Press Holdings and Kajima Development who proposed their bid at $636.39 million
- Wing Tai Holdings and Keppel Land bidding at $608.9 Million
In their proposals, the successful tenderers carefully demonstrated their building designs and layouts. They explained further how they would effectively cater to a large number of people who would regularly frequent the place. The winning proposal provided commendable solutions such as beautiful landscapes, pedestrian-friendly areas which would prove necessary in public places on the ground and first floors. They included well-designed spaces aimed at holding events and other types of gatherings.
Brief History of Sengkang
Sengkang Central was originally a fishing village known as Kangkar. In the mid-20th century, Sengkang was covered in numerous pepper, rubber and pineapple plantations. It was until 1994 when efforts began to turn the small town into a largely residential area. It was therefore divided into seven subzones which continue to undergo development to date. The first apartment building commonly known as a flat was built in 1997 in the Riverdale subzone. Now, there are numerous flats with over 65, 981 housing units in the whole of Sengkang. In a bid to turn it into a residential town, the Housing Development Board continues to approve numerous projects. Sengkang is located on the Northeast parts of Singapore and sits on prime fertile land, what with river Sungei Punggol and river Sungei Serragon, SengKang boasts of beautiful landscapes and vast greenery. The town has a population of over 232,100 people and sits on 22,000 Kilometers of land. The small town has a robust transport system that features private means, bus and the most preferred is the modern rail transport system.