Friday, April 1, 2011

Mitsubishi Estate to take stake in CapLand project

CAPITALAND has roped in a unit of Japan's Mitsubishi Estate Co as 25 per cent partner for a condo development on a plum site in Bishan that it clinched in February at a record land price.

The Singapore-listed property giant will hold the remaining 75 per cent stake in the project, which it is targeting to launch in the first half of 2012.

Word on the street is that CapitaLand is eyeing an average price of about $1,500 per square foot (psf) for the project, which will be near Bishan MRT Station and Junction 8 mall.

CapitaLand will be the lead development manager for the project, responsible for the full spectrum of sales and marketing, product design and development, and project management.

Wong Heang Fine, CEO of CapitaLand Residential Singapore, said: 'The Bishan Central site . . . is a rare gem as there has been a lack of new private residential developments in the area to meet the homebuyers' needs. The Bishan estate has about 27,000 households and compared to the Singapore average, a higher percentage of these households enjoy monthly income of $10,000 and above.'

Design and development works for the project are in progress, he added.

The property giant clinched the Bishan site at $869.36 psf of potential gross floor area - a new high for 99-year-leasehold suburban condominium land in Singapore and a whopping 27 per cent or $118 million above the next highest bidder at the tender, which drew 19 bids. The plot is near Bishan MRT Station and Junction 8 mall.

Property consultants have estimated the breakeven cost will be about $1,300 psf.

In a statement yesterday evening, CapitaLand reiterated that the proposed condo will have about 600 units and that the project will be at least 36 storeys high.

'Future residents on the upper floors will enjoy views of Bishan Park and Kallang River.

'CapitaLand and Mitsubishi plan to create a new architectural landmark on the site and will engage an internationally renowned star architect to conceptualise and design the new condominium.

'When completed, the project's iconic architecture is envisaged to transform the landscape of Bishan Central and add value to the site which is located in one of Singapore's most popular and desired residential estates,' CapitaLand said.

Mitsubishi is no stranger to CapitaLand. Recent collaborations include Shinjuku Front Square, a residential-commercial development in Shinjuku, Tokyo, as well as as prime residential developments in Vietnam.

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