City Developments, Hong Realty win Peck Hay Road with $422 million

City Developments Ltd. (CDL) and partner Hong Realty submitted the highest bid of S$542.4 million (about US$422 million) for a 99-year leasehold residential site at Peck Hay Road in the Newton residential enclave. The 59,347 square-foot plot was priced at S$1,865 per square foot per plot ratio and exceeded the second-highest offer by 8.4%. The next-best bid came from a consortium of Malaysia’s Sunway MCL and China’s CSC Land Group.

Under the partnership, Singapore-listed City Developments will hold an 80% stake in the project while Hong Realty, part of the Kwek family’s Hong Leong Group, will retain 20%. City Developments is controlled by billionaire Kwek Leng Beng and his family.

The site is near Scotts Road and about a three-minute walk from Newton MRT station, providing direct access to Orchard Road and the central business district. Nearby amenities include well-known schools, healthcare facilities and Newton Food Centre. The Urban Redevelopment Authority has plans for the area to become a mixed-use neighbourhood with additional parks, green spaces and community amenities.

In a company statement, Sherman Kwek, group chief executive of CDL, highlighted the site’s proximity to Orchard Road, strong MRT connectivity and access to amenities as aligning the project with the expectations of discerning homebuyers.

CDL has been active in replenishing its landbank. In February, CDL and partner Woh Hup Holdings submitted the top bid of S$709.3 million for a 99-year leasehold residential site in the Tanjong Rhu area.

Development details for the Peck Hay Road site, including product mix and timeline, have not been released. Developers are required to submit detailed proposals and secure planning approvals before launching sales. Future supply and pricing will depend on planning and housing authority approvals and market demand.

Kwek Leng Beng chairs the Hong Leong Group, founded by his father in 1941. The Kwek family’s combined net worth is estimated at about US$14.3 billion. A separate Hong Leong group in Malaysia is run by his cousin Quek Leng Chan.