Singapore

CBRE commentary on tender close for the white site at Jurong Lake District

March 26, 2024

Associated Contact

Melvin Lin

Head of Marketing & Communications, Singapore

Photo of melvin-lin

By Tricia Song (宋明蔚), Head of Research, Southeast Asia, CBRE

The Jurong Lake District (JLD) tender closed with one bidder group submitting two separate tenders with different concept proposals, and each with the requisite tender documents.

The sole bidder group consists of CapitaLand Development, City Developments Limited (CDL), Frasers Property, Mitsubishi Estate Co., Ltd. and Mitsui Fudosan (Asia) Pte Ltd. The strategic partnership brings together the combined expertise of the five companies with CapitaLand Development, CDL and Frasers Property holding a 25% stake each in the consortium, and Mitsubishi Estate and Mitsui Fudosan (Asia) holding a 12.5% stake each. 

As per URA’s announcement of the tender launch on 22 June 2023, the 6.5-hectare white site comprises three plots of land in JLD, linking the existing commercial centre at Jurong East MRT interchange station and the future JLD station of the Cross Island Line. The planning parameters include at least 146,000 square metres (sq m) of office space, about 1,700 dwelling units and 73,000 sq m of gross floor area for complementary uses such as shops, restaurants, entertainment, hotel, community uses or more offices. The project, set to become Singapore’s largest business district outside of the central area, will be progressively completed over 10 to 15 years. 

The Concept and Price Revenue tender approach is adopted to evaluate tender submissions for this site. Tenderers are required to submit their concept proposals and tender prices separately. The concept proposals will first be evaluated by a Concept Evaluation Committee against a set of criteria specified in the tender (Quality of Master Plan and Design Concept – 40%, Quality of Public Realm – 20%; Sustainability – 20%; and Track Record – 20%) , to shortlist concept proposals that are aligned with the vision for the JLD, i.e. proposals that feature a distinctive, highly sustainable mixed-use development with well-designed people-friendly public spaces and amenities to serve the needs of business and local communities. Only compelling concept proposals that are shortlisted will proceed to the second stage, which will be based on price only.

Results will be made known probably in the next few months.

CBRE comments:
o The response is in line with our expectations. Given the scale and risks of the JLD project, we expect bidders, if any, to form consortiums or JVs to tender for the JLD site. 
o We had expected 1-2 bids, and top bid might be around S$1,000psf ppr, before taking into account the infrastructural and engineering costs to achieve the various sustainability, net-zero emissions, car-lite, district cooling, integration features which will likely be quite substantial. 
o These companies have superior credentials and strong track records in master planning and developing mixed-use precincts that are vibrant, sustainable and commercially successful; in Singapore and overseas, so we believe the results should be positive.
 
o In November 2023, 368-unit J’den sold 88% at an average price of S$2,451psf on its first launch weekend, becoming the best-performing new launch in 2023 in terms of percentage of takeup, amid a weak residential market. This underscored confidence in this location.
o To know more about the CBD and decentralisation, you may refer to our white paper here.

Read the URA press release here.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.