In about two weeks, developers can start bidding for the site at Cecil Street/Telok Ayer Street.
The sale for the reserve site was triggered after an unknown developer has committed to bid at least S$623.7 million in the tender.
The Urban Redevelopment Authority (URA) said the land parcel spans 7,600 square metres.
It has a maximum permissible gross floor area of 77,000 square metres and can be developed into a building with up to 50 storeys.
Eighty per cent of the space can be allocated for offices and the remaining 20 per cent for retail.
Nicholas Mak, Research Head of SLP International said: “Since the government had not put up any commercial site in the financial district on the Confirmed List since 2011, the tender of this site is likely to attract much attention from major developers.
“However, the restriction to disallow strata-subdivision of the development will limit the bidders to those who have deep pockets and those who plan to eventually divest the whole development to a REIT or property trust. Major developers who are sponsors of REITs could also be interested in this site.”
Mr Mak expects five to 10 bidders for the site, with a winning bid of between S$760 million and S$830 million. This works out to S$915 to S$1,000 per square foot per plot ratio.
URA said the development cannot be sub-divided and sold to individual investors as strata-titled property.