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URA LAUNCHES TENDER FOR THE BUSINESS AND FINANCIAL CENTRE (BFC) AT DOWNTOWN AT MARINA BAY

1. The Urban Redevelopment Authority (URA) announced today that it has launched the Business and Financial Centre (BFC) at Downtown at Marina Bay for sale by public tender after having received a successful application for the site to be put to sale.

DETAILS OF THE APPLICATION AND TENDER

2. The BFC site was made available for sale through the Reserve List System on 27 May 2004. Under the government's reserve list system, the government will put up a site for public tender if it receives an application from a developer who commits, by signing an agreement and paying a deposit of 5% of the bid price, to bid for the site at a price which is acceptable to the government. Details of the Reserve List System are attached in Annex 1.

3. URA has received an application from a developer who has committed to bid a unit price of not less than S$1,776.00 per square metre gross floor area (GFA) for the BFC site. The applicant has paid a deposit of $8,880,000.00, being 5% of the first 100,000 sqm GFA of the BFC site. In accordance with the procedures of the Reserve List system, URA is making public this price. However, the identity of the applicant will not be revealed.

4. A tender period of 16 weeks will be allowed for the site. The tender will close at 12 noon on 21 June 2005. Selection of the successful tenderer will be based on the tendered unit price only. Tenderers must submit bids at or above the minimum unit price of S$1,776.00 per sqm of GFA for the bids to be considered.

5. Developer's Packets are available at S$105 each (inclusive of GST) for the land parcel. These can be purchased from the Customer Service Counter on the 1st storey of The URA Centre, 45 Maxwell Road, Singapore 069118. The developer's packets can also be purchased via URA-Online at http://www.ura.gov.sg/sales/sales_main.html at a cost of S$105 (excluding delivery charges) for local and overseas purchasers.

DOWNTOWN AT MARINA BAY – A TOTAL LIFESTYLE CITY

6. The development of the BFC will give a boost to realising our vision for Downtown at Marina Bay – a world class business and financial hub, integrated with quality housing, recreational and leisure facilities to create a total live-work-play environment.

7. Plans at Marina Bay are rapidly taking shape. Exciting developments like the Esplanade, One Fullerton and One Marina Boulevard already front the Bay. Two sites sold by URA earlier, i.e. One Raffles Quay (a commercial development) and The Sail@Marina Bay (a residential development) are under construction. The development of the BFC site, the third and by far the largest development within Marina Bay, will inject further excitement to the area. Other developments are being planned, such as Singapore’s 2nd Botanic gardens. The idea of an Integrated Resort is also being considered.

UPDATES ON DEVELOPMENT EFFORTS IN THE DOWNTOWN AREA

8. The development of Downtown at Marina Bay will present exciting opportunities for businesses, recreation and high quality living. The Government has tasked URA to be the development agency to champion and focus efforts on the development of Downtown at Marina Bay.

9. To support these efforts, the Government has set aside $300 million to develop additional infrastructure and facilities for the area. These will include a waterfront promenade and pedestrian-cum-vehicular bridge that will connect the Bayfront and Marina Centre areas.

10. URA has called for an international design consultancy to propose designs for the promenade and bridge, which will form part of a continuous 3.35 km long pedestrian route that frames the Bay and links the attractions along the waterfront. URA is now assessing the various design proposals and the selection of the consultant is expected to be done by the middle of the year. work on the waterfront promenade and the bridge will begin by the end of the year. The waterfront promenade and the bridge will become part of the signature image of Downtown at Marina Bay.

11. Other infrastructure expected to be implemented within these 2 years include the Common Services Tunnel, District Cooling System, and a new 230/22kV Electrical Substation. URA is working with other agencies to implement an underground pedestrian network, Rapid Transit System and the road system in Downtown at Marina Bay.

12. Besides facilities and infrastructure, URA, as the development agency for Downtown at Marina Bay will also market, promote and organise events for the area. The aim is to make Downtown at Marina Bay a choice destination for business and visitors and a lively place for all. More details of these initiatives will be announced later.

THE BUSINESS AND FINANCIAL CENTRE (BFC) SITE

13. The large BFC site, with a land area of 3.55ha and adjoining 1.8ha subterranean space, will be a key and strategic development within the Downtown at Marina Bay. The BFC provides a unique opportunity for a master developer to plan, design and develop a landmark project.

14. The total allowable gross floor area (GFA) of 438,000sqm and “white” zone gives the master developer the flexibility to plan an optimum mix of uses to achieve an attractive, well-integrated development. With 60% of the GFA slated for office use, the BFC will have the critical mass for a state-of-the-art commercial centre to meet the needs of modern business and financial firms and their employees. The balance 40% of the GFA can be developed for other commercial uses and complementary uses such as hotel, residential, entertainment and recreation uses to create a self-sufficient development. There will be open spaces, courtyards and sky-gardens, providing an attractive environment for business and city living.

15. The BFC development will benefit from the development and landscaping of the Central Open Space, a major new civic space and focal point for the area. About 1.37 ha in size, similar in scale to Istana Park and War Memorial Park, the open space will help to create an identity for the area and provide an attraction for the surrounding developments. It will also serve as an amenity for those living and working in the area.

16. The BFC development will be served by utility services via the Common Services Tunnel, allowing for dual power feeds, fibre-optic cabling and the capacity for expansion to meet changing utility needs and new technological requirements of business and financial institutions.

17. The site extends naturally from the existing Central Business District at Raffles Place and enables businesses and financial firms at the BFC to plug into the existing network of businesses and services. Its strategic waterfront location fronting Marina Bay and the Central Open Space provides the development with vantage views across the city and Marina Bay, as well as the opportunity to create a new signature landmark development in the city skyline.

18. The BFC site will be connected to the rail system through a comprehensive underground pedestrian network that links directly to the station concourses at Raffles Place MRT Station and the possible future Rapid Transit System (RTS) Station planned immediately adjacent to the site. It will also connect into the basement levels of the adjoining buildings, and the waterfront promenade and loop of attractions around Marina Bay. The area below the Central Open Space will be developed as an underground pedestrian mall with shops, restaurants and other interesting commercial facilities, and will be a central focal point and crossroads for pedestrians and commuters in the area. The developer will also be able to build high-level and underground connections to the waterfront promenade to give the BFC development greater waterfront presence.

THE CENTRAL PROMONTORY SITE

19. The successful tenderer of the BFC site will be given the opportunity to purchase and develop the adjacent Central Promontory site, which is earmarked for a new public attraction as part of the ‘loop’ of activities and attractions around Marina Bay.

20. The 0.87 ha Central Promontory site and adjoining 1.1ha of subterranean space will yield a GFA of 40,000sqm and is to be developed as a distinctive signature waterfront development of international standard that will contribute to making Marina Bay a vibrant waterfront destination. At least 60% of the GFA is to be developed for public attraction / convention uses, and at least 15,000 sqm of this 60% shall be for public attraction uses such as museum, art gallery, science centre, planetarium or aquarium. The remaining 40% GFA can be for complementary retail, food and beverage, recreational and entertainment facilities and additional convention uses.

21. The land parcels for both the BFC and the Central Promontory sites are offered on 99-year leases. Details of the two sites are provided in Annexes 2A & 2B and Annexes 3A & 3B.

FLEXIBLE DEVELOPMENT APPROACH FOR BFC SITE

22. The sale terms for the BFC site, which includes a flexible payment scheme and a longer project completion period, allows the developer to phase the development to match market demand, thereby lowering upfront costs and risks. Having the flexibility to build the development in phases will allow the developer to be able to secure tenants first before proceeding on each subsequent phase and plan and design each phase according to the prevailing market needs and specific requirements of the tenants.

23. With the flexible payment scheme, the developer of the BFC site can choose to build the development in phases and pay only for the land that he requires to build the first phase of development, upon the award of the tender. This first phase must comprise at least 100,000 sq m of GFA. The developer will purchase an option for the right to buy the land for the subsequent phases at prices fixed by a formula. He has a choice of option periods of 6, 8 and 10 years which are subject to the payment of corresponding option fees of 6%, 8% and 10% of the land price of the remaining phases.

24. The land price for the first phase will be computed based on the tendered unit price. For subsequent phases, the tendered unit price will be adjusted for changes in market prices to compute the land price. The adjustment to the tendered unit price will be 50% of the percentage change in the average Development Charge rates for commercial land use in the core Central Business District (see Annex 4). This will provide the developer with some certainty in the price for the subsequent phases and allow the Government and the developer to share the risk of land price volatility.

25. The option fee is not refundable if the developer does not take up subsequent phases. However, part of it, viz 3% of the land price, can be used to pay for part of the land price of later phases if he exercises the option. This is to encourage the developer to proceed and complete the development of the site as an integrated project.

26. Details of the option scheme for the BFC site are attached in Annex 5.

OTHER DETAILS OF TENDER

27. The details of the option for the BFC developer to purchase the Central Promontory site are at Annex 6.

28. The project completion period for each phase is 8 years. Hence, the overall project completion period can be as long as 18 years, if the developer chooses to purchase the site over 10 years.

29. If the developer opts to purchase the entire site upfront, he will be given a longer Projection Completion Period of 13 years. He will however, still be required to complete a minimum of 100,000 sqm GFA in the first phase development within 8 years of the award of the site.

ANNEX 1

THE RESERVE LIST SYSTEM

1. The Reserve List System was introduced In June 2001 to inject more flexibility into the Government Land Sales (GLS) programme. Prior to that, sites on the GLS Programme were released for tender at a pre-determined date each year. Such sites are known as confirmed sites and the award of the sites will depend on the acceptability of the prices submitted at the closing of tender.

2. Unlike confirmed sites, the Reserve List System makes available sites on the GLS programme without pre-determined tender dates. Instead, interested developers choose when to submit applications to the government to release specific reserve sites to be put up for tender. In this way, the Reserve List System enables the GLS programme to respond to market demand.

Application procedure for sites on the reserve list

3. A developer who is interested in purchasing a site on the reserve list will have to submit an application on a prescribed form and in a sealed envelope to the land sale agency indicating the minimum price that he is willing to bid for the site if it is put up for tender.

4. The application will be accepted if:
a. the minimum price is acceptable; and
b. the applicant is not disqualified from participating in land sale tenders.

5. Upon acceptance of the application, the applicant will be required to execute an agreement to submit a tender price not less than the minimum price stated in his application and to pay a deposit of 5% of the minimum price by way of a cashier’s order, banker’s guarantee or by bank transfer within a period of 2 weeks. If he fails to do so, the acceptance of the application will lapse and no further action will be taken on the application.

Tender of a reserve site

6. Upon the execution of the agreement and payment of the deposit by the applicant, the land sales agency will make a public announcement about the acceptance of the application and the accepted minimum price.

7. The identity of the applicant will not be disclosed to the public.

8. The land sale agency will then make a public announcement on the launch of the tender within two weeks of the execution of the agreement. The tender period varies with the characteristics of the sale site. In most cases, a tender period of 6 weeks is given but due to the complexity of the BFC site, a longer tender period of 16 weeks has been given.

9. Under the agreement, if the applicant fails to submit a bid in the tender, puts in an invalid bid or bids below the submitted bid price, the deposit will be forfeited.

10. The successful applicant may submit a tender price higher than the minimum price in the tender.

11. The applicant will be allowed to use the deposit for the agreement as full or part payment of the tender deposit. If he puts in a bid in accordance with the agreement, but is not the highest bidder in the tender, his deposit will be refunded.

Award of tender for reserve site

12. Selection of the winning bid in the tender will be based on the highest tender price received only.

For media enquiries, please contact:

Ms Ang Hwee Suan
Head, Public Relations
DID: 6321 8134
Email: Ang_Hwee_Suan@ura.gov.sg

Ms Gillian Tan
Executive Public Relations Officer
DID: 6321 8280
E mail: Gillian_tan@ura.gov.sg

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Last updated on 18 May 2006