ONE BERNAM DEVELOPER
One Bernam Developer
Jointly developed by MCC Land and Hao Yuan Investment, One Bernam is a brand new development located in the heart of the Central Business District. Seated on a squarish land plot of 41,400 square feet, the One Bernam Developer secured the land bid in September 2019 with a closing price of $440.9 million through a government land sale. This development will feature a 35-story tower with 2 levels of commercial units and 351 residential units.
The One Bernam Developer is a pioneer in taking up the Central Business District (CBD) Incentive Scheme launched by URA in March 2019. The objective of URA is to transform the Central Business District into a vibrant place where people can work, live and play. At present, the precinct is only used for business activities and this entire land area can be better utilized for multiple usages such as residential, commercial, and recreational. The CBD incentive scheme applies to areas around Anson Road, Cecil Street, Shenton Way, Robinson Road, and Tanjong Pagar.
Under the CBD Incentive Scheme, developers can obtain a higher gross plot ratio when they develop the land for more than 1 usage such as residential with commercial use on the ground floor. The One Bernam Developer foresees that through the CBD Incentive Scheme, the will be plenty of growth potentials for the city. In addition, as a first-mover in this transformation, the developer can help secure a lower price for land compared to developments in the future.
One Bernam Developer, MCC Land (Singapore) Limited was incorporated in 2010 and it is a subsidiary of MCC Singapore, which is a wholly-owned subsidiary of MCC Group. Ranked as China’s largest manufacturer of steel structures and a Fortune 500 company with assets worth US$7.7 billion, the MCC Group has operations in more than 90 countries and it is presently listed in both the Hong Kong and Shanghai Stock Exchanges.
As the real estate division of MCC Singapore, MCC Land is ranked amongst the top real estate developers in Singapore and it has a portfolio of 12 developments in its track record including condominium and executive condominiums. To date, the One Bernam Developer has built more than 5,000 units covering a total area of 500,000 square meters in Singapore. It has consistently delivered well sought-after projects such as The Santorini which was launched in 2014 and The Alps Residences in 2016. Located close to each other in the Tampines Avenue 10 vicinity, MCC Land was successful in providing budget-friendly residential units which are below $1 million.
One of the latest project by the One Bernam Developer is The Landmark which is located at Chin Swee Road and it was launched in November 2020. Despite the Covid-19 pandemic and the circuit breaker, The Landmark sold an estimated 30% of the total units during the launch weekend. The units transacted at an average selling price of $2,250 psf. The land plot was acquired through a collective sale of the former Landmark Tower in May 2018 for $286 million which works out to be a $1,406 psf per plot ratio.
In addition to One Bernam Showflat, MCC Land and The Place Holdings will jointly develop a new freehold mixed development located at Enggor Street where the present Realty Centre is situated. The property was sold in a collective sale for $148 million in April 2019 and MCC Land took up a 30% equity state in the company which is developing the site. Under the CBD Incentive Scheme, the current 12-story office building is not limited by its current plot ratio. It can be redeveloped into a hotel or residential with commercial on the first story and gain an increase in plot ratio of between 25% to 30%.
In addition to the redevelopment of the Realty Centre in the city, the One Bernam Developer also entered into another collaboration with The Place Holdings to develop a mixed-use project next to the Tanah Merah MRT interchange. In November 2020, MCC Land won the tender for the land plot of 95,580 square feet at Tanah Merah Kechil Link for $248.99 million. The new mixed-use development will have an estimated 265 new residential units with commercial units on the first level.
Incorporated in 2010, One Bernam Developer, Hao Yuan Investment, has been in long-term partnership with MCC Land to develop numerous residential projects in Singapore. The majority of their early collaboration was in executive condominiums such as Sea Horizon at Pasir Ris and Forestville at Woodlands. In 2016, they jointly launched 3 projects with a total of 1,720 units of new residences at Northwave executive condominium, The Alps Residences, and Queens Peak.
The new development, The Alps Residences, sold 280 units which are 44% of the total units on the first day of launch. Following the success of The Alps Residences, the One Bernam Developer jointly launched Queens Peak, a 736-unit residential development with MCC Land. Located at the city fringe and directly linked to Queenstown MRT, the development saw strong sales with 34% of its units sold on the first launch weekend at an average selling price of $1,632 psf.
With the major transformation plans by URA for the Central Business District and the Greater Southern Waterfront, it is a strategy for MCC Land and Hao Yuan to take a first-mover position in Bernam Street. Due to the scarcity of land in the city, it is foreseeable that land prices in the city will continue to increase. The last 2 residential sites with the commercial first story at Enggor Street were transacted at $7,719 psm per GFA and $9167 psm per GFA in 2007.
A decade later, the One Bernam Location which is only one street away from Enggor Street, transacted at $15,745 psm per GFA in September 2019. Clearly, this is the time to enter before land prices continue to climb and the market saturated with competition.