Pilot project to best-source management of vacant State land: The Singapore Land Authority selects Colliers International Asset Management

The Singapore Land Authority (SLA) launched a pilot project to bestsource the management of a portfolio of 24 plots of vacant State land in the city area, with a total area of about 45 ha, to a managing agent for 3 years. The project seeks to tap the creativity, expertise and experience of managing agents in the private and public sectors to increase and improve interim uses of large plots of vacant State land, and provide better services and achieve greater benefits for the economy, businesses and the community. In response to its tender of 30 June 2004, SLA received a substantial response of 13 bids altogether.

SLA is pleased to announce that it has selected Colliers International Asset Management (CIAM) as its managing agent for the portfolio of vacant State land with effect from 1 October 2004.

In evaluating the bids, SLA took into account the respective bidders' tender price, experience, track record and proposals for interim uses of the vacant State land. CIAM's bid offered enhanced community and temporary commercial use of the land and better returns to the State. SLA would be able to leverage on CIAM's established capabilities to reach out to the market and extract more value from the land. This includes tapping on CIAM's local and international network through its proprietary EggSystems web-based property management platform. CIAM quoted a basic management fee of $5,000 per month and an incentive-based agency fee of 3 per cent for any additional revenue that it could generate from marketing the sites in each Financial Year beyond a threshold of $300,000.

The contract to manage the 24 plots of vacant State land in the city area is for 3 years initially and may be renewed. The contract also specifies that the use of seven sites near Marina Bayfront, Orchard Turn/MRT Station, Somerset Road, Clemenceau Avenue, Merchant Loop, Merbau Road/Unity Road and Kirk Terrace beyond end December this year is subject to review by URA to tie-in with on going development plans for the areas.

SLA will review the progress of this pilot project within the first year of the contract with CIAM. We will consider expanding the bestsourcing of the management of vacant State land in other parts of Singapore to the private sector or other public agencies when appropriate.

Issued by:
Singapore Land Authority
15 September 2004