reporter2
12-08-12, 02:09
http://www.businesstimes.com.sg/archive/saturday/premium/singapore/tuas-south-sites-draw-many-bids-few-takers-mandai-link
Published August 11, 2012
Tuas South sites draw many bids, but few takers for Mandai Link
By Teo Si Jia
A TENDER for four plots of land launched by JTC Corporation for Business-2 (clean and light uses only) development closed yesterday.
The 240,745.62 square feet plot at Mandai Link with a 30-year lease and maximum permissible gross plot ratio (GPR) of 2.5 drew a lukewarm response, with only two bidders at the close.
The higher bid of $45.29 million, or $75.25 per square foot per plot ratio (psf ppr), was submitted by Soilbuild Group, topping the other bid of $39.54 psf ppr from Wee Hur Development.
"The lower and fewer bids reflect cautiousness in the Mandai area," said SLP International executive director Nicholas Mak.
But the tenders for three land parcel at Tuas South Street 7 and 8 with a maximum GPR of one and a tenure of 23 years were hotly contested, with most bids falling between $30 and $55 psf ppr.
The first, Plot 13 on Tuas South Street 7, with the biggest site area of 48,987.63 sq ft, drew 12 bids with Chip Eng Seng Contractors bidding $3.82 million for the land, translating to $77.84 psf ppr.
This was significantly greater than the next highest bid of $2.65 million, which works out to $54.10 psf ppr, from Beng Soon Machinery Services.
Mr Mak attributed the site's popularity to its location. "Plot 13 is a corner site that enjoys two frontages, three including a temporary road," he said.
Plots 15 and 17 on Tuas South Street 8 with land areas of 32,680.31 sq ft and 32,679.23 sq ft attracted 13 and eight bidders respectively.
Transco-Pac Transport & Environmental Pte Ltd placed the top bid for Plot 15 at $1.79 million or $54.72 psf ppr, slightly ahead of Chip Eng Seng's $1.76 million bid.
For Plot 17, P-One made the highest offer of $1.49 million or $45.58 psf ppr. Toko Tan Equipment placed the second highest bid of $1.29 million, which is $39.53 psf ppr, while the lowest bid came from New Guan Hong Trading at $800,000.
"Looking at the companies, the bidders are mostly end-users, who are building for their own use, not developers," said Mr Mak.
"There is a healthy demand as it is hard to find such sites in Singapore. Low plot ratio where users or industrialists can build low-level office or factory, or parking space for their cranes or heavy vehicles on land that is cheap."
"Over $50 psf ppr for Tuas South Street 7 and 8 seems to be the right price," he added.
On the 30-year cap the Ministry of Trade and Industry has placed on lease terms for industrial sites sold under the Industrial Government Land Sales (IGLS) scheme, Mr Mak said: "It could be an issue if the lease is short. It would definitely make it harder. The 23-year lease is a bit short to obtain a sufficient sum from banks."
Published August 11, 2012
Tuas South sites draw many bids, but few takers for Mandai Link
By Teo Si Jia
A TENDER for four plots of land launched by JTC Corporation for Business-2 (clean and light uses only) development closed yesterday.
The 240,745.62 square feet plot at Mandai Link with a 30-year lease and maximum permissible gross plot ratio (GPR) of 2.5 drew a lukewarm response, with only two bidders at the close.
The higher bid of $45.29 million, or $75.25 per square foot per plot ratio (psf ppr), was submitted by Soilbuild Group, topping the other bid of $39.54 psf ppr from Wee Hur Development.
"The lower and fewer bids reflect cautiousness in the Mandai area," said SLP International executive director Nicholas Mak.
But the tenders for three land parcel at Tuas South Street 7 and 8 with a maximum GPR of one and a tenure of 23 years were hotly contested, with most bids falling between $30 and $55 psf ppr.
The first, Plot 13 on Tuas South Street 7, with the biggest site area of 48,987.63 sq ft, drew 12 bids with Chip Eng Seng Contractors bidding $3.82 million for the land, translating to $77.84 psf ppr.
This was significantly greater than the next highest bid of $2.65 million, which works out to $54.10 psf ppr, from Beng Soon Machinery Services.
Mr Mak attributed the site's popularity to its location. "Plot 13 is a corner site that enjoys two frontages, three including a temporary road," he said.
Plots 15 and 17 on Tuas South Street 8 with land areas of 32,680.31 sq ft and 32,679.23 sq ft attracted 13 and eight bidders respectively.
Transco-Pac Transport & Environmental Pte Ltd placed the top bid for Plot 15 at $1.79 million or $54.72 psf ppr, slightly ahead of Chip Eng Seng's $1.76 million bid.
For Plot 17, P-One made the highest offer of $1.49 million or $45.58 psf ppr. Toko Tan Equipment placed the second highest bid of $1.29 million, which is $39.53 psf ppr, while the lowest bid came from New Guan Hong Trading at $800,000.
"Looking at the companies, the bidders are mostly end-users, who are building for their own use, not developers," said Mr Mak.
"There is a healthy demand as it is hard to find such sites in Singapore. Low plot ratio where users or industrialists can build low-level office or factory, or parking space for their cranes or heavy vehicles on land that is cheap."
"Over $50 psf ppr for Tuas South Street 7 and 8 seems to be the right price," he added.
On the 30-year cap the Ministry of Trade and Industry has placed on lease terms for industrial sites sold under the Industrial Government Land Sales (IGLS) scheme, Mr Mak said: "It could be an issue if the lease is short. It would definitely make it harder. The 23-year lease is a bit short to obtain a sufficient sum from banks."