Top bid for Yishun industrial site beats expectations

[Pro888]

Total 8 bidders with top bid at $95.13 psf.

http://hudcsg.blogspot.sg/2012/08/top-bid-for-yishun-industrial-site.html (http://hudcsg.blogspot.sg/2012/08/top-bid-for-yishun-industrial-site.html)

B.Batok site only received 4 bids with top bid at $80psf and maximum building height AMSL almost 3 times of Yishun site.

[Pro888]

Around this Yishun site, 2 are gg to TOP soon, 1 U/C (parcel 2,3 & 4 combined) and 1 reserve site also being tiggered. :scared-1: Red hot demand!

[Allthepies]

Around this Yishun site, 2 are gg to TOP soon, 1 U/C (parcel 2,3 & 4 combined) and 1 reserve site also being tiggered. :scared-1: Red hot demand!

Yup yishun cheong! 1500psf soon! :cheers4: :cheers4:

[solsys]

The fun is coming to Yishun while alot of people are distracted by Woodlands ....... hehehe.....:D

[hyenergix]

Govt should clamp down on industrial properties speculation. High cost of rental will kill off businesses in a shallow down-turn, which is happening now. Even the lucrative petrochemical plants are starting to lose money these few months.

[Pro888]

Govt should clamp down on industrial properties speculation. High cost of rental will kill off businesses in a shallow down-turn, which is happening now. Even the lucrative petrochemical plants are starting to lose money these few months.

To make site more affordable, govt recently reduce lease period from 60yrs to 30yrs for many industrial land sites. In terms of quantum, logically yes. But in psf, not much information yet for comparison due to different year lease and location.

But what surprised was the top bid price coming in at $95.13 psf which was way above expectation of around $70 psf. 2nd bid came in at $84psf which was also higher than the top bid for B.Batok site of $80psf.

[DC33_2008]

They just want to based on market demand. Look at those hawker centre tender.
To make site more affordable, govt recently reduce lease period from 60yrs to 30yrs for many industrial land sites. In terms of quantum, logically yes. But in psf, not much information yet for comparison due to different year lease and location.

But what surprised was the top bid price coming in at $95.13 psf which was way above expectation of around $70 psf. 2nd bid came in at $84psf which was also higher than the top bid for B.Batok site of $80psf.

[ikan bilis]

To make site more affordable, govt recently reduce lease period from 60yrs to 30yrs for many industrial land sites. In terms of quantum, logically yes. But in psf, not much information yet for comparison due to different year lease and location.

But what surprised was the top bid price coming in at $95.13 psf which was way above expectation of around $70 psf. 2nd bid came in at $84psf which was also higher than the top bid for B.Batok site of $80psf.

there is a big difference between the 2 sites... the bt batok site has restriction of cannot sub-divide into strata titles for first 10yrs, where as yishun site can be subdivided and sold to anyone immediately...

market is always smarter than we think lah... :cool:

[ikan bilis]

Q & A on Bt Batok site:

http://www.ura.gov.sg/sales/BBSt23/BB23-QnAframes.htm

Q5
http://www.ura.gov.sg/sales/images/blank.gif
Why is there a restriction on strata subdivision of the development for the first 10 years after the project is completed (ie obtained Temporary Occupation Permit)?

A5
http://www.ura.gov.sg/sales/images/blank.gif
The government actively monitors the varied needs of industrialists. Where appropriate, conditions will be imposed on Industrial Government Land Sales land parcels, so as to serve the needs of the entire spectrum of industrialists. The subject site is released for sale for Business 1 industrial development. Having a single owner for the first ten years after the development is completed will ensure better management of the industrial space and provides greater flexibility in the customization of floor plate sizes and development layouts to meet the needs of industrial users. The condition is not imposed for the full duration of the lease (30 years for most industrial sites) to provide the owner some business flexibility to respond to future market conditions such as requests from some industrialists to own the space they are operating in.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Q & A on Yishun site:

http://www.ura.gov.sg/sales/YishunAve9P5/Launch/YishunAve9P5-SpecQnAFrames(L).html

Q5Does the new condition which restricts strata subdivision for the first 10 years after TOP apply to this industrial site? Can the development be strata subdivided upon TOP?

A5The industrial site at Yishun Avenue 9 (Parcel 5) is not subject to any restriction on strata subdivision. However, the sales conditions for the site will specify that the gross floor area (GFA) comprised in a single unit shall not be less than 150 m2. The successful tenderer can apply for strata subdivision of the development when the construction reaches the roof level and the GFA comprised in a single strata unit shall also not be less than 150 m2. The requirement is also applicable to the developments on each of the subdivided plots should the successful tenderer subdivide the land parcel.

[reporter2]

http://www.straitstimes.com/archive/friday/premium/money/story/yishun-industrial-site-30-year-lease-gets-8-bids-20120831

Yishun industrial site with 30-year lease gets 8 bids

Published on Aug 31, 2012

By Amanda Tan


EIGHT developers have submitted competitive bids for a Yishun industrial site with a 30-year lease.

When the tender closed yesterday, Soon Hock Tuas Development emerged on top with an offer of $51.4 million, or about $95 per sq ft per plot ratio (psf ppr).

This was followed by Capital Development and ZACD Investments, with a joint bid of $45.6 million, or about $84 psf ppr.

Soilbuild Group Holdings came in third, with a bid of $38.4 million, or about $71 psf ppr.

The lowest bid of $25.3 million, or about $47 psf ppr, came from Wee Hur Development.

The 20,074.7 sq m site in Yishun Avenue 9 is zoned for Business 1 development - that is, clean and light industries.

Mr Lee Sze Teck, Dennis Wee Group's senior manager of training, research and consultancy, said that the top bidder appears to be pitching higher than what the market had expected.

"This could be because it has different development plans that allow it to go in at a higher price," he said.

He noted that there are unsold units in some of the existing projects in the area.

The plot, being quite sizeable, will thus face some competition, especially because the others there are on 60-year leases.

But this site is not affected by several guidelines imposed on industrial properties, like the no-subdividing rule for buildings located near selected sites.

However, strata units must be of a minimum size of 1,615 sq ft.

Mr Tan Boon Leong, Colliers International's executive director of industrial services, said the bullish bids reflected some successful launches in the area.

He estimated that the break-even price for developers is between $220 psf and 240 psf, putting the selling price for the project at $300 psf at least.

"The developer may want to avoid direct competition with other projects there, so it must try to find a way to differentiate its product," he said.

[email protected]

[reporter2]

http://www.businesstimes.com.sg/archive/friday/premium/singapore/top-bid-yishun-industrial-site-beats-expectations-20120831

Published August 31, 2012

Top bid for Yishun industrial site beats expectations

Soon Hock's offer of $95.13 psf ppr is 12.7% above next highest bidder's

By Kalpana Rashiwala


A STATE tender for a 30-year leasehold industrial site at Yishun Avenue 9 has attracted a higher-than-expected top bid of $51.388 million, or $95.13 per square foot per plot ratio, (psf ppr) from Soon Hock Tuas Development.

This was 12.7 per cent above the second highest offer of $84.41 psf ppr by a partnership between Capital Development and ZACD Investments. In third position was Soilbuild Group Holdings, which priced the site at $71.06 psf ppr.

In all, the Urban Redevelopment Authority tender yesterday drew eight bids. The 2-hectare plot (parcel 5) is across the road from a 1.2-hectare site (parcel 6) - also on 30-year tenure - that was recently triggered for launch from the government's reserve list, with an undertaking from the successful applicant to bid at least $14.2 million (or $45.03 psf ppr).

Both sites are zoned for Business 1 use, with a 2.5 plot ratio (ratio of maximum gross floor area to land area) and can be strata subdivided. Permitted uses for Business 1 zoning include light industry, clean industry, utilities and telecoms.

Soon Hock group - the top bidder at yesterday's tender (for parcel 5) - is fully owned by Tan Yeow Khoon. He and his brother Tan Yeow Lam are major shareholders of mainboard-listed Cogent Holdings Limited, the parent of SH Cogent Logistics.

Savills Singapore director of industrial and business space Dominic Peters told BT yesterday evening that he had expected parcel 5 to fetch a top bid in the $70-80 psf ppr range.

Colliers International director (industrial) Tan Boon Leong's forecast was about $70 psf ppr. He estimates Soon Hock's break-even cost for a new strata industrial project at about $220-240 psf. "On average, they should be able to sell units at above $300 psf, with ground-floor units commanding at least $400 psf and upper-floor space, around $280-310 psf," Mr Tan added.

Soon Hock chairman Tan Yeow Khoon told BT he plans to develop the Yishun Avenue 9 plot into a ramp-up development with strata industrial and warehouse units. This could be a multi-storey project of about eight to 10 storeys but plans have yet to be firmed up, he said.

This will be Soon Hock's fifth strata industrial project in Singapore for sale. It has completed Tuas Cove Industrial Centre and T5 @ Tampines which are both fully sold. It is also building Bartley Biz Centre at Kaki Bukit Road 4, which is around 75 per cent sold.

Earlier this year, the group clinched an industrial site at Serangoon North Avenue 4 on which it is planning to launch a ramp-up /flatted factory facility in Q1 next year.

On Tuesday, Soon Hock group lost out to property giant Far East Organization at a URA tender for a 99-year leasehold private housing plot at Farrer Road, next to Lutheran Towers.

Soon Hock bid $44.3 million or $1,072.73 psf ppr, or about 3 per cent below Far East Soho's top bid of $1,107.80 psf ppr.

The plot can be developed into a maximum of 54 apartments.

The lowest bid at yesterday's tender for Yishun Avenue 9 (parcel 5) was from Wee Hur Development - at $25.3 million or $46.83 psf ppr. Others participating at the tender include Oxley Sparkle ($70.56 psf ppr), OKH Holdings, Vantage Properties and KNG One.