A PRIME 99-year leasehold commercial site between Cecil Street and Telok Ayer Street will be put up for sale by public tender, after it was triggered for release from the government's reserve list.
The Urban Redevelopment Authority (URA) said a developer has applied for its release after commiting to a bid of at least $623.7 million in the tender.
URA will launch the public tender for the site in about two weeks and the tender period will be about eight weeks.
This latest land parcel was made available on the reserve list late last year, and has a site area of some 81,800 square feet, including an open space of 17,400 sq ft. It can cater for a 50-storey building, URA said.
The maximum permissible gross floor area (GFA) is about 831,000 sq ft, of which at least 664,000 sq ft, or 80 per cent, must be for office use.
The minimum bid price translates to about $751 per square foot per plot ratio (psf ppr).
Analysts expect between five and 10 bidders to contest the site, with a top bid of between $900 psf ppr and $1,000 psf ppr, given its location in the Central Business District and that it will be directly connected to Tanjong Pagar MRT station.
"Since the government has not put up any commercial site in the financial district on the Confirmed List since 2011, the tender of this site is likely to attract much attention from major developers," said Nicholas Mak, head of research and consultancy at SLP International.
The expected price range for the highest offer compares with the $882 psf ppr Far East Organisation paid in 2011 for the plot it is now developing as SBF Center across the road at Robinson Road and Cecil Street.
Guocoland paid $1,006 psf ppr in 2010 for a site above Tanjong Pagar MRT Station, which will become Tanjong Pagar Centre.
Desmond Sim, associate director at CBRE Research, noted that rents for Grade A office space has bottomed out, and developers may be able to enjoy a "probable upswing".