Allgreen Properties Secures Prime Residential Site Near Orchard Road with Top Bid
Billionaire Robert Kuok-controlled developer Allgreen Properties Ltd has made a significant move in Singaporeโs real estate market by submitting the top bid for a prime residential site near the renowned Orchard Road shopping precinct. This development highlights Allgreen’s strategic expansion in the city-state despite the current softening of housing demand.
Prime Bid for Zion Road Site
Allgreenโs Valerian Residential placed the highest bid of S$730 million (US$544 million/RM2.537 billion) for the 99-year leasehold site on Zion Road, situated approximately three kilometers south of Orchard Road. This bid, reported by Forbes, outpaced the S$660.8 million offer from the only other bidder, a partnership between two units of billionaire Kwek Leng Bengโs Hong Leong Group.
Strategic Expansion Amid Market Softness
The bid for the Zion Road site comes at a time when Singapore developers have been cautious about government land auctions. The housing demand has been softening due to higher borrowing costs and the governmentโs property cooling measures. Despite these challenges, Allgreenโs proactive approach signals confidence in the long-term potential of Singaporeโs real estate market.
Development Potential
The Zion Road site is projected to support the development of approximately 610 housing units. Its strategic location near Allgreenโs Great World City shopping and commercial complex adds value to this investment, promising substantial integration with existing urban amenities.
Growing Investments in Singapore
Allgreen Properties, the privately-held real estate arm of the Kuok Group, has been actively increasing its investments in Singapore. The city-state is considered a haven for the worldโs wealthiest individuals and hosts over 1,000 family offices from around the globe. This trend underlines Singaporeโs appeal as a stable and lucrative investment destination.
In recent months, Allgreen has made notable acquisitions and developments in Singapore:
- Pasir Ris 8: Last month, Allgreen opened the shopping mall component of Pasir Ris 8, a residential condominium integrated with the Pasir Ris transport hub in eastern Singapore.
- Seletar Mall: In March, the company acquired the Seletar Mall in northeastern Singapore for S$550 million.
Conclusion
Allgreen Propertiesโ successful bid for the Zion Road site demonstrates the companyโs strategic focus on expanding its footprint in Singaporeโs real estate market. Despite current market challenges, Allgreenโs investments underscore its confidence in the long-term growth and resilience of the city-state’s property sector. This move not only reinforces Allgreen’s position in Singapore but also enhances its portfolio with prime residential assets, ensuring continued growth and profitability.
