Hong Leong Group submitted highest bids for Sims Drive site
The government land sale (GLS) tender for Sims Drive closed on March 28. Among the five bids for the site at Sims Drive, the highest bid of $383.5 million ($732 psf per plot ratio) came from a 60:40 joint venture between Hong Leong Holdings‘ Intrepid Investments and City Developments Ltd, both members of Hong Leong Group Singapore.
The 99-year leasehold site has an area of 174,648 sq ft and could be developed into a new residential project of 570 units. However, the joint venture will explore a residential development with several 17- or 18-storey blocks comprising about 560 units. Now the site is known to be Penrose.
Some of the attributes of the Penrose condo include its connectivity – by the Kallang-Paya Lebar Expressway and the Pan Island Expressway, a short 15-minute drive to the Central Business District and Orchard Road Shopping Belt and a short travelling distance to Paya Lebar MRT Interchange Station and Paya Lebar Central, located just one stop from the Aljunied MRT station.
The site’s proximity to popular schools like Geylang Methodist School, Canossa Catholic Primary School, Cedar Primary School and Kong Hwa Primary School also makes the location attractive to young families, says the spokesman.
Given Penrose condo’s location in the city fringe and proximity to the Aljunied MRT station, Tricia Song, Colliers International head of research for Singapore, considers the underwhelming response – with just five bids — “a surprise”. She attributes the subdued bid prices to the fact that the site is subjected to a larger minimum average unit size of 85 sq m. “Developers may also be assuming some buffer for the five-year ABSD [additional buyer’s stamp duty] time line, given its relatively larger plot size.” Colliers estimates the selling price of Penrose condo to be around $1,400 psf, after factoring the potentially larger units. The top bid is the lowest for a private residential land site on a psf ppr price basis since the Chong Kuo Road site near Mandai was sold for $681 psf ppr in Feb 2018.