A consortium of five Asian developers, led by Thai billionaire Charoen Sirivadhanabhakdi’s Frasers Property and Singaporean real estate tycoon Kwek Leng Beng’s City Developments, have submitted a bid for the development of a central business district in the western Singapore suburb of Jurong. The other members of the group include CapitaLand Development, Mitsubishi Estate, and Mitsui Fudosan. The project will be built on a 6.5-hectare site near the Jurong East MRT interchange and the future Jurong Lake District station and will include residential units, office space, and commercial space for shops, restaurants, entertainment facilities, and a hotel.
The consortium emerged as the sole bidder for the project when the tender closed on Tuesday. The government’s initiative to develop a business district outside of the city center comes as vacancies at prime office rents in Raffles Place and Marina Bay reached a 15-year high in the first quarter of this year. The project is expected to be constructed over 10 to 15 years and will contribute to the increasing demand for office space from multinational companies relocating to Singapore.
While the consortium did not provide an estimate of the project cost, real estate website Mingtiandi suggested that building the suburban central business district could cost around S$8.8 billion. The total built space of the development is expected to be 3.9 million square feet, with an estimated land cost of about S$1,000 per square foot per plot ratio. Analysts expect the consortium to pay the government approximately S$3.9 billion for the site. Frasers Property, which has experience in developing master-planned projects in the region, expressed excitement about collaborating with its partners to create a vibrant, global business district in Jurong.
Frasers Property, CapitaLand Development, and City Developments will each own 25% stakes in the consortium, while Mitsubishi Estate and Mitsui Fudosan will hold 12.5% stakes each. The companies involved in the project have strong track records in developing successful mixed-use precincts in Singapore and overseas. Tricia Song, head of research for Southeast Asia at property consultant CBRE, believes that the consortium’s experience and expertise will lead to positive results for the Jurong Lake District development. The consortium aims to set a new benchmark for Singapore and contribute to the future of sustainable cities with this project.
The government’s initiative to build the largest business district outside of the city center indicates its commitment to meeting the demand for office space in Singapore. With prime office rents in key areas reaching a 15-year high, the development of the Jurong Lake District is seen as a strategic move to attract multinational companies looking to establish a presence in the city-state. The consortium’s bid for the project highlights the confidence of the developers in the potential of Jurong as a key business hub in Singapore. The success of the project could further enhance Singapore’s position as a leading business and financial hub in Southeast Asia.
