(Bloomberg) – Singapore has rejected a bid by a group of top property companies to develop a new business district west of the island after deeming it unattractive.
The Urban Redevelopment Bureau rejected the total floor area price of 6,889 ($5,309) a-square-meter, offered by the consortium, and was rated “too low to develop a 6.5 hectares site in the Jurong Lake District. “A statement on Friday. This offer was a finalist from two proposals submitted by the same group of developers.
The consortium included Capitaland Group, owned by Singapore’s state investor Temasek Holdings, and included City Developments Ltd, the largest listed developer in the island.
The move is a setback to city-state efforts to demolish central business districts, where office vacancies remain strict. However, many of the top financial and technology companies that have gathered at financial hubs have chosen to avoid locations outside the city’s prestigious skyscrapers and instead choose to scale back offices or find staff overseas. I did.
At the same time, developers are beginning to be drawn back from getting big risks and expensive bids as the country’s intense housing market cools down. Another bid for a major property near the city centre was already denied in February, but the residential site was unable to attract attention from developers in June for the first time in more than 20 years.
The consortium suggested that Livid is unlikely, and its spokesman said in a statement that the developers “look forward to future partnership opportunities.”
In a statement Friday, the URA said the government remains committed to developing the site, is expected to include business, residential and recreational spaces and remains involved with industry stakeholders. Ta. Land parcels are placed on the so-called spare list and if the authorities meet the minimum acceptable price, the interested bidder can cause another launch.
(Updated by the consortium’s reaction in the sixth paragraph.)
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