TWO state properties - the former Monk's Hill Secondary School at Winstedt Road and the former Ministry of Home Affairs complex at Phoenix Park in Tanglin Road - have attracted strong bids despite the sluggish property market.

The Windstedt Road site, off Bukit Timah road, drew seven bids above the guide rent of $147,300 per month. The site was awarded to Allbest Equipments, which put in the highest bid of $211,328 per month, or $27.12 per sqm.

The company plans to retain about 5 to 10 per cent of the built-up space for its corporate office and sub-lease the remaining space.

The other choice site at Tanglin Road is the largest office site (about 59,630 square metres) offered by the Singapore Land Authority (SLA) so far.

The sprawling site, which is under conservation study, attracted 11 bids, of which 10 were above the guide rent of $165,000 per month.

The tender went to LHN Facilities Management of the LHN Group, with the highest bid of $368,888 per month or $27.73 per sqm.

The LHN Group is also the master tenant of several other state properties, two of which were for office use at the former Gan Eng Seng School at Raeburn Park, and the former CID training centre at Pearl's Hill Terrace, which is fully occupied now by design and consultancy firms.

SLA said on Thursday that these are the first two office sites awarded this year. The tenders were conducted in May and June.

SLA's Director of Land Lease Private of Land Operations Group, Mr Teo Cher Hian, said: 'In picking the winning bid, SLA considered among other factors, the best value for the State based on allowable uses, business concept, track record and the financial health of the company.

'We understand that LHN Group plans to configure the site into separate tenant clusters. With nearby office buildings such as the adjacent former MOE headquarters at 1 Kay Siang Road which now houses the YOG headquarters, and more impending office set-ups, this site completes the area as an office hub.'

Mr Kelvin Lim, Managing Director of the LHN Group said his company plans to transform the site into an iconic, integrated office complex with ancillary use, including F&B outlets.

SLA said it is preparing for tender two more properties for dedicated office use.

They are at 11 Kelantan Road (a former police post) with a GFA of about 177 sqm, and the former Pacific Can Building, a two-storey building at 19-25 Cecil Street with a GFA of about 1810 sqm, which is now vacant.

Since February 2007, SLA had awarded 22 out of 24 tenders, with total GFA of about 157,000 sqm, for office use.

Said Mr Teo: 'So far, our office tenders have been well-received with strong bids submitted. This supply has met the immediate need of tenants decanting from prime locations. We understand from our tenants that the take-up rates from their sub-tenants have also been good.

'There is also a healthy take-up by local start-ups, MNCs and financial institutions of all our prime, city-fringe and suburban located State properties. SLA will continue to monitor the take-up rates and identify more suitable sites for office use, if there is demand.'