The Singapore Land Authority (“SLA”) has received strong bidding for office space in its latest tender and finally awarded ERC Holdings Pte Ltd the former River Valley Primary School site at 341 River Valley Road .

ERC Holdings Pte Ltd, the Entrepreneurs Resource Centre, a service designed to help Asian entrepreneurs, submitted the highest of four bids for this CBD property Other bidders were from property management and hostel operations background.

With a GFA of about 4,400 sqm, the building comprises one single storey block and two blocks of 3-storey buildings with 2-storey wings, 1-storey canteen and a substation. ERC Holdings intends to invest S$3-5 mil to convert the former school building into a boutique office complex with support services like F&B outlets, meeting and training rooms.

Said Mr Andy Ong, CEO, ERC Holdings: “We have been bidding for such properties as they are a cost-efficient alternative for the private sector in the face of the high market rentals. We hope to be able to turn this site into an attractive option for our businesses and other potential tenants. In land-scarce Singapore , the interim use of State properties is a cost-effective way to optimise their use pending their long-term re-development.”

Slated to open by the 4th quarter of 2007, about half of the property's GFA may be sub-let. The tenancy is for an initial term of three years and is renewable up to 2013.

Three other tenders currently under evaluation saw average bids as high as 68 percent above the guide rents. Bravo Building Construction Pte Ltd placed the highes bid for the 4,500 sqm GFA site. In the meantime, three more properties for office use at 18 Pearl 's Hill Terrace, 10 Raeburn Park and 300 Jalan Bukit Ho Swee were also launched for tender recently under the RentDirect scheme.

The scheme allows businesses to make direct rental offers to SLA for vacant State buildings placed on the scheme and retains elements of competitive bidding and at the same time gives businesses seeking to launch their new businesses quickly and with more certainty. RFP

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