Complete Property Market Updates of Singapore

June 10, 2008

ISD’s former headquarters up for tender

Filed under: General,Land Sale,Regulators — Propertymarketupdates @ 4:12 am

The Singapore Land Authority (SLA) has launched a public tender for the adaptive re-use of the former headquarters of the Internal Security Department (ISD) and Ministry of Home Affairs (MHA) at Phoenix Park, off Tanglin Road.


Garden variety: Block A of the former headquarters of the Internal Security Department and Ministry of Home Affairs at Phoenix Park, off Tanglin Road. The site is designated for office use

Designated for office use, the 641,851-sq-ft site houses 24 low-rise blocks with a gross floor area of 143,160 sq ft. The guide rent is $165,000 per month or $1.15 per square foot (psf) per month.

SLA is looking for a master tenant to take the whole site. SLA senior manager of project services Winston Cheah said: ‘The set-up of the premises allows for the tenant to parcel and sub-lease the blocks, each creating a separate identity.’

The site’s historic associations go back to the mid-20th century when the British Secret Service built the first blocks there after World War II. Their design was decided by Lord Mountbatten, then Supreme Allied Commander of the South East Asia command.

ISD’s predecessor, the Special Branch, moved in in 1948, until MHA moved in from 1977-2001. MHA was followed by Republic Polytechnic from 2004-2006.

Cushman & Wakefield managing director Donald Han says the fact that the buildings were recently used ’shows occupation readiness’, which should make them more attractive to bidders.

He reckons office rents there could be $4-$5.50 psf per month. So the developer will need to achieve a break-even cost of $2.50-$3.50 to see a good profit margin.

Mr Han also said the site has ample parking and outdoor space that could be maximised.

SLA also revealed yesterday that the tender for 10 Winstedt Road, formerly Monk’s Hill Secondary School, closed on April 16 with seven bids received.

The 164,798.5-sq-ft site and premises with a gross floor area of 83,889 sq ft drew a top bid of $211,328 per month or $2.52 psf per month from Allbest Equipments. This is 43 per cent above SLA’s guide rent of $147,300 per month or $1.76 psf per month.

Allbest general manager C H Chan said that if the company is awarded the site, it intends to use 5-10 per cent of the built-up area for its corporate office and lease out the rest at $7-$8 psf.

On the demand for such space, Mr Han said: ‘As long as it can be ready within six months, the market is still in the hands of the landlords.’

Source : Business Times – 14 May 2008

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