Thai billionaire Charoen Sirivadhanabhakdi’s Frasers Property and Singaporean real estate tycoon Kwek Leng Beng’s City Developments have joined forces with three other Asian developers to bid for the development of a central business district in Jurong, a western suburb of Singapore. The group, which also includes CapitaLand Development and Japanese developers Mitsubishi Estate and Mitsui Fudosan, emerged as the sole bidder for the 6.5-hectare Jurong Lake District (JLD) project.
The project, which will be located near the Jurong East MRT interchange and the future Jurong Lake District station, includes 1,700 residential units, 146,000 square meters of office space, and 73,000 square meters of commercial space for shops, restaurants, entertainment facilities, and a hotel. The government aims to build the biggest business district outside of the city center in response to the increasing demand for office space from multinational companies relocating to Singapore.
Estimated to cost about S$8.8 billion ($6 billion) to build, the project is expected to be constructed over 10 to 15 years. The consortium is anticipated to pay the government approximately S$3.9 billion for the site, with a total built space of 3.9 million square feet. Frasers Property CEO Soon Su Lin expressed excitement about collaborating with their partners to create a vibrant, global business district in Jurong Lake District, which will set a new benchmark for sustainable cities.
Frasers Property, CapitaLand Development, and City Developments will each own 25% stakes in the consortium, while their Japanese partners will each hold 12.5% stakes. Tricia Song, head of research for Southeast Asia at property consultant CBRE, praised the consortium for their strong track records in master planning and developing successful mixed-use precincts. She believes that the results of the project should be positive and contribute positively to the development of Jurong Lake District.
The joint statement from the consortium highlighted their shared vision for JLD and their commitment to creating a vibrant and sustainable business district. Frasers Property, with experience in master-planned projects across the region including One Bangkok in Thailand, is looking forward to working with their reputable partners to realize this vision. The project is expected to attract high-profile tenants and contribute to the future growth of Singapore’s real estate market.
With vacancies at prime office rents in Raffles Place and Marina Bay at a 15-year high in the first quarter of the year, the government’s initiative to build a suburban central business district comes at a crucial time. The demand for office space in Singapore continues to rise, and the development of Jurong Lake District is seen as a strategic move to accommodate this demand while improving the city’s infrastructure. The successful bid by the consortium is a significant milestone in the development of the project and is expected to have a positive impact on Singapore’s real estate market and economy.
