A developer triggered the site's release for sale from the Government's reserve list by committing to bid at least $1.536 billion at the tender, or about $1,010 per sq ft per plot ratio (psf ppr).
The news comes despite a tough office leasing market, with concerns over the 3.6 million sq ft of space in the central area due for completion this year and the next - across such projects as Guoco Tower, Duo Tower, Marina One and 5 Shenton Way.
Grade A Central Business District (CBD) rents fell 9.3 per cent from last year to $8.86 psf per month in the second quarter, while vacancy rates rose from 3.8 per cent to 4.2 per cent over the same period, according to Cushman & Wakefield.
Infrastructure and transport links are growing in the area with the recently completed Downtown Line and upcoming Thomson-East Coast Line. It means the tender for this site "re-establishes Marina Bay as a new central point for offices - an extension of Raffles Place", Mr Sim added.
The 1.1ha site, between Asia Square and Marina Bay Suites, can be built up to 50 storeys high with a maximum gross floor area (GFA) of 1.52 million sq ft, of which at least about 71 per cent must be for offices.
Up to about 53,820 sq ft of GFA can be used for retail, and the rest for office, hotel, serviced apartment or residential purposes.
The site was on the reserve list for about a year. Prior to that, a 0.78ha white site at Marina View/Union Street was available since October 2011, but not triggered for sale. It was removed from the reserve list last year. Besides the ample supply deterring developers, the Marina View site was deemed inferior, partly as it was farther from Marina Bay.