A land parcel at the Ophir-Rochor area, which might be up for redevelopment by the Singapore-Malaysian joint venture company, M-S, could be worth hundreds of millions of dollars.
Analysts said should M-S decide to open up the land to developers, it could trigger fierce bidding for prime real estate.
Choice property in the city is hard to find.
A site at Ophir-Rochor area was removed from the government land sales programme last week after being available for sale since 2008.
The Urban Redevelopment Authority (URA) had said it’s reviewing the use of the site.
That has led to increasing speculation, especially after Malaysia and Singapore announced on Monday that they will form a joint entity called M-S to develop land in Singapore owned by Malayan Railway.
Both countries agreed that M-S would be vested with several parcels, including land in Kranji, Woodlands and Bukit Timah.
But they could swop the plots for equivalent value real estate in the Ophir-Rochor and Marina South areas.
Colin Tan, consultancy director, Chesterton Suntec International Research, said: “I think the most likely scenario that will arise from this is that the company will probably trade these parcels of land for something in Ophir or Marina South because those two areas are more ready for redevelopment. The infrastructure around it is ready.”
The Ophir-Rochor plot is estimated to be worth hundreds of millions of dollars.
Nicholas Mak, real estate lecturer, Ngee Ann Polytechnic, said: “One neat and quick way for M-S Private Limited to realise value of some of these sites is to actually sell them in the open market to private developers. After that, they can decide on how to utilise and divide up the sales proceeds.”
If the swap happens, analysts expect the Marina South plots to be redeveloped for prime office space or high-end condominiums.
The Ophir-Rochor plot could be made into a tourist and backpacker hub.
On Monday, M-S was also vested with a plot in Tanjong Pagar, after the Singapore government announced plans to move the 78-year old train station there to Woodlands.
M-S is 60 per cent owned by the Malaysian government investment arm while Singapore’s Temasek Holdings owns the rest.
Source : Channel NewsAsia – 25 May 2010