GuocoLand (F17.SG) down 10.2% at $2.29, with orderbook quotes suggesting limited interest in thinly-traded stock; fall today erases most of Tuesday’s 13% surge ahead of bidding results for URA’s land above Tanjong Pagar MRT station, according to Dow Jones.

Lim & Tan Securities, which keeps a Neutral stance on stock, says GL’s $1.7 billion bid is $180 million or 11.8% over next highest bid.

Property consultant estimates suggest $2,400–$,2500 psf selling price for residential units (likely 30% of GFA) which “seems aggressive”. If fully undertaken alone, would be firm’s largest development in Singapore, comparable to City Developments’ (C09.SG) South Beach project.

Broker would not rule out participation by controlling shareholder Guoco Group.

Lim & Tan Securities says, total development costs estimated at $3 billion, which is approximately GuocoLand’s current market cap. After recent 1-for-3 rights issue to raise $532 million, “more may be needed” with share price “likely to come under some pressure.”

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