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A consortium led by Frasers Property and Frasers Centrepoint Trust (FCT) has emerged as the highest bidder for the Bayshore Drive Government Land Sales (GLS) site in Singapore, offering USD 1.64 billion. The consortium, which also includes Sekisui House, Sunway MCL and Lum Chang Building Contractors, submitted a bid 5.8% above the second-highest offer. The mixed-use development is expected to deliver up to 1,280 residential units alongside 22,500 square metres of commercial space, including a retail mall. The partners will execute the project through separate special purpose entities responsible for the residential and commercial components of the development.
A consortium led by Frasers Property and Frasers Centrepoint Trust (FCT) has submitted the highest bid for the Bayshore Drive site under Singapore's Government Land Sales (GLS) programme, offering USD 1.64 billion for the mixed-use development opportunity. The companies announced the outcome in a statement issued on Wednesday, with the consortium's offer exceeding the second-highest bid by 5.8%.
The consortium comprises Frasers Property, Frasers Centrepoint Trust, Japanese homebuilder Sekisui House, Sunway MCL and Lum Chang Building Contractors, a unit of Lum Chang Holdings. Their bid translates to USD 1,323 per square foot per plot ratio for the government-owned development parcel, which has been released for private development through Singapore's GLS programme.
The Bayshore Drive site has been earmarked for a mixed-use scheme comprising residential and commercial components. Based on planning parameters, the project is expected to accommodate up to 1,280 residential units together with approximately 22,500 square metres of commercial floor space. The commercial component will include a retail mall designed to serve residents and the surrounding community.
To undertake the development, the consortium will establish separate special purpose entities to oversee the project's residential and commercial elements. The commercial assets will be held through a special purpose trust comprising Frasers Centrepoint Trust, a Sunway MCL unit and Sekisui House. This entity will be responsible for developing, owning and funding the retail and commercial component of the project.
The residential portion will be developed through a separate special purpose company. Alongside Sunway MCL and Sekisui House, this vehicle will also include units of Frasers Property and Lum Chang Holdings, with responsibility for delivering the residential development and meeting the associated construction and development costs.
Commenting on the acquisition, Richard Ng, Chief Executive Officer of the manager of Frasers Centrepoint Trust, stated that the project would allow the real estate investment trust to use property development as an additional growth avenue while creating a future acquisition pipeline through an investment capable of delivering an attractive yield.
According to LSEG data, Frasers Property managed approximately S$40 billion in assets as of the end of March and holds an interest of more than 38% in Frasers Centrepoint Trust. The proposed Bayshore Drive development adds to the group's pipeline of mixed-use projects within Singapore's residential and retail property market.
Source - Reuters
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