THE Urban Redevelopment Authority (URA) yesterday said that it has rejected the bid by Peak Green for a residential site at Choa Chu Kang/ Woodlands Road as the price offered was too low.

Peak Green's offer was $61 million, or just over $162.40 per square foot per plot ratio (psf ppr).

It was the higher of two bids which the 99-year leasehold site attracted. The only other bid was from Sim Lian Land which offered $45.68 million, or $121.60 psf ppr.

Peak Green is understood to be linked to Kheng Leong, the privately-owned property group controlled by the family of banker Wee Cho Yaw.

The tender for the Choa Chu Kang/ Woodlands Road site was launched last December and closed on April 3 this year.

At the time, estimates by consultants pegged the value of the site, on which the state-owned Ten Mile Junction currently sits, at between $200 psf ppr and $250 psf ppr.

The 15,645 sq metre (168,403 sq ft) site has a residential potential gross floor area of 254,394 sq ft, which can house between 200 and 240 flats or serviced apartments.

The existing commercial gross floor area is 121,191 sq ft.

Consultants had been divided on whether the URA would award the site but at least one noted that the bid price was one of the lowest in years.

The last time land tender bids of below $200 psf ppr were submitted was between 2000 and 2002.

Separately, URA said yesterday that it has awarded a transitional office site at the Scotts Road/ Anthony Road area to UOB Kay Hian Trading which submitted the highest bid of $34 million, or $243 psf.

The tender was launched on Feb 28 and closed on Thursday. The 8,683 sq metre site was offered for sale on a 15-year lease.

This article was first published in The Business Times on April 26, 2008.