Smaller developers teaming up for bids Steeper building costs and stiff competition from established property players are forcing smaller developers to join forces to lodge bids for development sites, analysts said. Property giants like Far East Organization and Frasers Centrepoint often form consortiums to bid, but these days smaller players also see strength in numbers. The trend was seen in the recent tender for an executive condominium plot in Yuan Ching Road. The top bid, which smashed price records at $418 per sq ft per plot ratio, was lodged by a consortium of smaller developers and construction companies - Evia Real Estate, BBR Development, CNH Investment and OKP Land. These tie-ups may sometimes occur only after the tender has been awarded. Oxley Holdings, for example, recently announced partnerships with construction firms to develop KAP Residences and Midtown Residences after winning bids for the sites. Analysts said that smaller developers have been finding it harder to win tenders on their own. In the period from January to July this year, only three sites were won by smaller players acting alone,. Last year, seven sites were secured in the same period. As some consortiums comprise construction firms and property developers, the partners can bring their expertise to improve the development process and reduce costs, experts said. Source: The Straits Times –23 August 2013
Posted on: Fri, 23 Aug 2013 09:56:02 +0000
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