Hong Leong Group awarded Midwood condo land site for S$460m
The Hong Leong Group has secured the 154,000 sq ft Midwood Hillview Rise private site with a top offer of S$460 million – thanks in no small part to its proposed creative development techniques and the executives with a focus on efficiency.
The property arm of Hong Leong Group presented the top offer among a competitive list of six recommendations for the 99-year site. In light of a 430,879 sq ft net floor area, the value works out to about S$1,067 psf ppr (per plot ratio).
The government land sales (GLS) attracted nine submissions from eight contenders under a double envelope framework, with Hong Leong Group’s owned City Developments Ltd (CDL) collaborating with CapitaLand to submit two separate concept bids.
The Urban Redevelopment Authority (URA), which picked the winning tender on July 3, said the bid included wide use of Prefabricated Prefinished Volumetric Construction (PPVC) with generous format modularization and significant levels of development coordination in completing the advancement of the site.
Midwood will incorporate Mass Engineered Timber (MET) for the clubhouse, which would additionally increase the degree of prefabrication and reduce the time spent on works to be done on the site.
Different highlights of the Hong Leong’s concept proposal incorporate Building Information Modeling-based planning; project tracking with QR code; cloud-based coordinations during development and Virtual Design and Construction (VDC) on computerized stages for various stakeholders to share and facilitate data all through the project’s lifecycle.
URA said in an announcement that Hong Leong is vigorous in its proposed development profitability plan and development the executives plan which mean to accomplish considerable decrease in labor, prompting fundamentally improved efficiency results.
The price and concept 2-envelope system was adopted for this tender. In the main stage, the Concept Evaluation Committee (CEC) shortlisted those that had “substiantially fulfilled” the assessment criteria on development profitability to continue to the following stage.
The list of contenders included the recommendations by the accepted offer, including the two by CapitaLand and City Development. After shortlisting the proposals based on their concept, the price envelope was opened and the top offer was chosen.
The GLS tender for the site lasted from Dec 28 2017 to May 3 2018.
According to the analysts Business Times interviewed, the winning land price was within the industry’s expectations in comparison to recent land bids. It is a very attractive piece of land, with close proximity to retail amenities and walking distance to the Hillview MRT station. At the same time, it is situated in a private and exclusive neighbourhood. Although compared to other areas. Future homebuyers of Midwood are likely to be owners of nearby landed properties or young couples who wants to live near nature parks.
Hong Leong Holdings is pleased to be awarded the Midwood site on Hillview Rise under the Concept and Price Revenue tender system. It is a recognition of the Group’s experience and readiness to adopt and use new construction techniques to attain superior construction efficiency and quality for its projects.