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THE Singapore Land Authority (SLA) has received strong bidding for office space in its latest tender.
While ERC Holdings was awarded the site of the former River Valley Primary School, three other tenders at Cantonment Road, Shan Road and Alexandra Road saw average bids as high as 68 per cent above the guide rents, the SLA said on Thursday.

The River Valley site, with a land area of about 17,600 square metres (sqm) and gross floor area (GFA) of about 4,400sqm, was awarded to ERC Holdings. Tenancy is for an initial term of three years and is renewable up to 2013.

'We have been bidding for such properties as they are a cost-efficient alternative for the private sector in the face of the high market rentals. We hope to be able to turn this site into an attractive option for our businesses and other potential tenants,' said ERC CEO Andy Ong.

ERC Holdings had submitted the highest bid among four bidders from property management and hostel operations background.

The current building, comprising one single storey block and two blocks of 3-storey buildings with 2-storey wings, 1-storey canteen and a substation, will be converted into a boutique office complex with support services like F&B outlets, meeting and training rooms.

With an investment of $3 to $5 million to refurbish the property, ERC Holdings hopes to attract businesses with interesting concepts and ideas who will appreciate the innovative platform and vibrancy of the location. About half of the property's GFA may be sub-let.

Record 15 bids
The Cantonment Road site, which comprises two blocks of three-storeys, with covered link ways and a guardhouse, attracted 15 bids - the highest ever for a SLA public tender for rental of State property.

The bids for the property with a land area of about 7,100sqm, slightly smaller than a football field, and GFA of about 4,500sqm, ranged between $27,000.00 and $91,731.00.

Beating out the competition was Bravo Building Construction's bid, which was the highest at 68.6 per cent above the guide rent. The next 11 bids were all above the guide rent by at least 10 per cent.

'The enthusiastic response came from businesses ranging from property management and real estate to wholesale trading and F&B,' SLA said.

The tenancy is for an initial term of three years and is renewable up to 2016.

Drawing bids from property management companies and securities firms were the former community centre (CC) at 3 Shan Road and former ITE at 991 Alexandra Road.

Phillip Securities was one of two bidders for the former Moulmein CC. The former Pasir Panjang ITE also had two bids, with RichZone Properties Investment, a new property management company, offering almost 45 per cent more than the guide rent.

New properties available for tender
The SLA also announced three new properties available for tender.

One of them is the former CID Training Centre, which was launched for public tender on May 29 under the RentDirect Scheme.

Sitting on a land area of about 1,700sqm, one-fifth of a football field, and GFA of about 790sqm, half of the land area, it is atop a hill and close to a MRT station with many food places nearby, the SLA said.

Comprising a block of 2-storey building with basic amenities, the property at 18 Pearl's Hill Terrace is 'suitable for companies who want small offices in a heritage building'.

Tenancy is available until December 2009.

Another site offered for public tender on June 1 is Raeburn Park, formerly Gan Eng Seng school.

'Located at the fringe of the CBD, suitable for business expansion especially for companies located in the CBD,' the SLA said.

The land area is about 28,000sqm, larger than three football fields, and GFA of about 14,900sqm, half the land area. The property comprises a 4-storey building with basement and a 2-storey building, connected by linkways.

Tenancy is for an initial term of three years and is renewable up to 2016.

The former Bukit Ho Swee CC is also up for public tender, starting June 8. Located at 300 Jalan Bukit Ho Swee, the CC sits on a land area of about 3,800sqm, about half of a football field, and GFA of about 2,550sqm, one third of the land area.

Tenancy is for an initial term of three years and is renewable up to 2016.

The SLA said that the information communications and travel businesses have expressed an interest in this property.

More information on available properties for rental is available at SLA's State Property and Information Online (SPIO) web portal and at the SPIO hotline at 6323 9154.
ST 07062007