CapitaLand to build Orchard Road site

CapitaLand to build Orchard Road site

SINGAPORE: Southeast Asia's largest property developer and its Hong Kong partner have been awarded the tender to develop a prime plot of land in Singapore's Orchard Road district, the government said on Wednesday.

Singapore-listed CapitaLand and partner Gresward Pte. Ltd., a unit of Sun Hung Kai Properties in Hong Kong, won the tender with their bid of S$1.38 billion (US$825 million), the Urban Redevelopment Authority (URA) said in a statement.

At more than double the valuation of the site, it was the highest of eight bids submitted, the URA said when bids closed last Thursday.

Developing the coveted 1.8 hectare site at the corner of Orchard and Paterson roads is part of a blueprint announced earlier this year by the government to spruce up the city-state's prime shopping and tourist belt into one of the best retail strips in the world.

It comes as Thailand, which opened Bangkok's $366-million Siam Paragon mall on Friday, tries to position itself as a regional shopping rival to Singapore and Hong Kong.

The URA said the tender allows for a commercial development with an underground shopping mall. At least 40 percent of the total gross floor area must be for retail, food and beverage and/or entertainment uses, it said. -- AFP