Business

$689m bid triggers sale of Zouk’s former site

Public tender launched for prime Jiak Kim Street plot on URA's reserve list

The former site of popular nightspot Zouk, in Jiak Kim Street, has been put up for sale.

The prime plot along the Singapore River was made available on the reserve list in June and triggered for sale after a developer committed to bid at least $689.4 million for it.

The 13,482 sq m site is being launched for tender at a minimum price of $1,250 per sq ft per plot ratio (psf ppr), based on that indicative bid.

It could accommodate 525 apartments in a project of up to 36 storeys, with ground-floor commercial use, albeit only in the three conserved warehouses that used to house Zouk.

The tender for the 99-year leasehold site will be opened in about two to three weeks, the Urban Redevelopment Authority (URA) said yesterday.

Industry sources noted that the high indicative bid and the short three-month period to trigger the sale highlighted the site's strong selling points.

These include its riverfront view, location in the prime District 9, proximity to the upcoming Great World and Havelock MRT stations on the Thomson-East Coast Line as well as dining offerings in the Robertson Quay area and Great World City mall.

It is "another sign the market has turned", said Dr Lee Nai Jia, head of research at Edmund Tie & Company.

"Previously, sites on the reserve list remained untriggered for one year or longer," he said.

ZACD Group executive director Nicholas Mak said potential bidders will likely use nearby luxury condo Martin Modern, sold in June last year at $1,239.03 psf ppr, as a reference.

Just as the tender for Martin Modern resulted in a record GLS (Government Land Sales) residential land price, the tender for the Jiak Kim site could produce a new record. Nicholas Mak, ZACD Group executive director

'NEW RECORD'

"Just as the tender for Martin Modern resulted in a record GLS (Government Land Sales) residential land price, the tender for the Jiak Kim site could produce a new record," he said.

He estimated that the land price could range from $728 million to $800 million ($1,320 psf ppr to $1,450 psf ppr).

Ms Christine Li, who heads research at Cushman & Wakefield, said: "We expect GuocoLand to place a defensive bid for Jiak Kim since it won Martin Modern a year ago."

Mr Desmond Sim, CBRE's head of research for Singapore and South-east Asia, said sites on the GLS Programme have "always been a more favoured route for developers".

He added that "with the optimism around the residential market, we expect 10 to 15 bids at possibly 30 per cent above the minimum bid".

Separately, the URA released detailed sales conditions for a reserve list site in West Coast Vale.

The 19,591.5 sq m plot could yield up to 730 residential units.

ZOUKPropertyURBAN REDEVELOPMENT AUTHORITY (URA)