reporter2
16-06-12, 06:43
http://www.businesstimes.com.sg/archive/friday/premium/singapore/site-kaki-bukit-road-5-draws-top-bid-273m
Published June 15, 2012
Site at Kaki Bukit Road 5 draws top bid of $27.3m
Amount beats expectations; Hock Lian Seng trumps 7 other bidders
By Mindy Tan
THE top bid for the 1.31 hectare (ha) industrial site at Kaki Bukit Road 5 beat analysts' expectations yesterday, at $27.3 million, or $138.6 per square foot per plot ratio (psf ppr).
Put up by Hock Lian Seng Holdings, it trumped seven other bidders, and beat the second highest bidder, Trans-cab Services, by 2.6 per cent. The taxi operator put up a bid of $26.6 million for the site, or $135 psf ppr.
When the site was launched in April, consultants polled had suggested that bids would hover around $100 psf ppr.
According to Colliers International director (industrial) Tan Boon Leong, the small plot size which keeps the required capital outlay low, alongside locational attributes could play a part. "Developers looking at the surrounding developments could think prices are holding up well in that location," he added.
SLP International executive director Nicholas Mak said: "It's slightly on the bullish side, but in the climate of increasing industrial property capital value, we can only expect prices to be higher than previous tender."
One of the draws for the site could be its close proximity to AutoBay, suggested Mr Mak.
"This site could potentially be developed into premises that can support the auto trade or attract companies in the trade," he said. The top bid works out to a breakeven cost of about $300 psf, he added.
That eight bids were received for the site is "very encouraging" as it shows that "they still think the economy is strong", said Colliers's Mr Tan.
"Going forward, 30-year leases are going to be the norm, at least until the end of this year. So I think they have more or less become accustomed to this . . . (In addition), the fact that the site is small, and close to the MRT station makes it a hot site to go after," he added.
Earlier this month, the Ministry of Trade and Industry announced that it is halving the maximum tenure for industrial sites under its land sales programme to 30 years.
The other eight bids include a joint bid by Capital Development and Qinghe ($135.0 psf ppr), and Vantage Properties which is controlled by Lim Kim Hong and Lim Huixing ($110.7 psf ppr). The lowest bid came from NSS Development, at $71.0 psf ppr.
The 1.31 ha site is zoned for Business 2 development. It has a maximum gross plot ratio of 1.4, and a lease period of 30 years. It is not subject to any restriction on strata subdivision. However, the gross floor area of a single unit cannot be less than 150 square metres.
Published June 15, 2012
Site at Kaki Bukit Road 5 draws top bid of $27.3m
Amount beats expectations; Hock Lian Seng trumps 7 other bidders
By Mindy Tan
THE top bid for the 1.31 hectare (ha) industrial site at Kaki Bukit Road 5 beat analysts' expectations yesterday, at $27.3 million, or $138.6 per square foot per plot ratio (psf ppr).
Put up by Hock Lian Seng Holdings, it trumped seven other bidders, and beat the second highest bidder, Trans-cab Services, by 2.6 per cent. The taxi operator put up a bid of $26.6 million for the site, or $135 psf ppr.
When the site was launched in April, consultants polled had suggested that bids would hover around $100 psf ppr.
According to Colliers International director (industrial) Tan Boon Leong, the small plot size which keeps the required capital outlay low, alongside locational attributes could play a part. "Developers looking at the surrounding developments could think prices are holding up well in that location," he added.
SLP International executive director Nicholas Mak said: "It's slightly on the bullish side, but in the climate of increasing industrial property capital value, we can only expect prices to be higher than previous tender."
One of the draws for the site could be its close proximity to AutoBay, suggested Mr Mak.
"This site could potentially be developed into premises that can support the auto trade or attract companies in the trade," he said. The top bid works out to a breakeven cost of about $300 psf, he added.
That eight bids were received for the site is "very encouraging" as it shows that "they still think the economy is strong", said Colliers's Mr Tan.
"Going forward, 30-year leases are going to be the norm, at least until the end of this year. So I think they have more or less become accustomed to this . . . (In addition), the fact that the site is small, and close to the MRT station makes it a hot site to go after," he added.
Earlier this month, the Ministry of Trade and Industry announced that it is halving the maximum tenure for industrial sites under its land sales programme to 30 years.
The other eight bids include a joint bid by Capital Development and Qinghe ($135.0 psf ppr), and Vantage Properties which is controlled by Lim Kim Hong and Lim Huixing ($110.7 psf ppr). The lowest bid came from NSS Development, at $71.0 psf ppr.
The 1.31 ha site is zoned for Business 2 development. It has a maximum gross plot ratio of 1.4, and a lease period of 30 years. It is not subject to any restriction on strata subdivision. However, the gross floor area of a single unit cannot be less than 150 square metres.