URA announced on May 31 that it had accepted an application from a developer to put up for sale by public tender the 99-year leasehold commercial site at Cecil Street/Telok Ayer Street (below).

The land parcel was made available for sale through the Reserve List system on Dec 19, 2012. The site is about 0.8ha and has a potential gross floor area (GFA) of 830,572 sq ft. It is suitable for the development of a high-quality office project that meets the needs of business and financial institutions. At least 664,462 sq ft, or about 80% of the maximum permissible GFA, is designated for office use, with the remaining for additional office use or other commercial uses such as retail and F&B. The proposed development of up to 50 storeys will be directly connected to the Tanjong Pagar MRT station and part of the site will be set aside for open space.

The developer committed to bid at a price of not less than $623.73 million, or a minimum bid of $751 psf of GFA, in the tender for the land parcel. As the minimum price committed by the developer is acceptable to the government, the site will be released for sale by public tender. URA will launch the public tender in the coming week.

Just across the road is SBF Center, a 31-storey commercial development comprising offices and medical suites. Far East Organization had paid $882 psf per plot ratio (ppr) for the site in late 2011. In 2010, GuocoLand paid $1.7 billion, or $1,006 psf ppr, for a white site next to the Tanjong Pagar MRT station that will be used for a mixed-use development, comprising residences, office and retail space, as well as a luxury hotel.

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