The Mixed-Use Development Site Tender at Pasir Ris Central has Been Awarded by HDB for $700m
The purposed mixed-use development project called The Ryse Residences will include a bus interchange, a town plaza, and a polyclinic. It is Phoenix Residential & Phoenix Commercial which has won the tender by placing the highest bid of $700m. It was revealed in the recent announcement.
This new development is going to comprise a residential and commercial development along with a polyclinic, a bus interchange, and a town plaza. That $700m is S$684.48 per sq-foot/plot ratio and the entire gross floor area is 1.02 million sq ft.
The price revenue tender was introduced by HDB for sale on 27th August 2018 and it was closed on 14th December 2018. Three interested investors made three concept proposals. Laguna Garden and Far East Commercial Trustee were other two bidders who placed bids of nearly S$677.78m for where the site Ryse Residences will stand.
The HDB revealed that this new development is going to provide easy access to public transportation services and other amenities every inhabitant seeks. It will also serve as a community focal point once the construction work is finished.
The HDB has followed a concept and price revenue tender system to choose the best development concepts with exceptional incorporation of public space and amenities.
Concept Evaluation Committee decision
The Concept Evaluation Committee or CEC has worked to assess concept proposals that effectively satisfied the development criteria and then moved the best proposals to the next stage.
Only the shortlisted bidders submitted their price envelopes at the second stage and those envelopes were checked for consideration. A tenderer, which has placed the highest bid among other shortlisted tenderers, was rewarded the project. There were only three tenderers and all of them have gotten enough time to reveal their development plans to the CEC.
The CEC took enough time to evaluate two of the three submitted concept proposals. These were submitted by the Far East Organization and Allgreen Properties and Kerry Properties in collaborations. Their concept proposals were satisfactory for the CEC and therefore they moved these proposals to the next stage for evaluation.
Price Envelope assessment
Both had submitted price envelopes and the authorized people opened them to make a further assessment. The HDB decided to award this site to the Allgreen-Kerry partnership because they had placed the highest bids among both shortlisted bidders. This also translate to best in concept for the design of Ryse Residences location
Christine LI (Cushman & Wakefield Research Senior Director) revealed that the proposed development is thought to be completed in a flawless way because of minimum competition in the neighborhood. Jovell at Flora Drive was the last new launch which was introduced in September and it is just a few minutes away from the MRT station.
The prices are expected to be $1,500 psf onwards as speculated by the executive. Pasir Ris has been one of the developers’ favorite destinations for building private and public housing projects. Several of them completed in recent time and it is expected to be a great location for mixed-use development because of constantly growing residential properties in the region.
According to Li, the site is attractive and the comparatively subdued tender response could have been influenced by conditions set for mixed-use development. It will be the developer’s responsibility to build a Town Plaza and a Polyclinic to recover the cost. This is going to be a burdensome task for the developers.