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30-08-13, 15:16
http://www.businesstimes.com.sg/premium/singapore/four-industrial-sites-put-tender-20130830
Published August 30, 2013
Four industrial sites put up for tender
By Kalpana Rashiwala [email protected]
THE government has released four industrial sites for tender - two in Gambas Crescent in the Sembawang/Woodlands area and two in Tuas South. These are the first four plots to be offered under the confirmed list of the second-half 2013 Industrial Government Land Sales (GLS) Programme.
Property consultants generally expect the Gambas land parcels - located about 700 metres from Sembawang MRT Station - to fetch higher winning bids than those in Tuas.
"The Gambas parcels are conveniently located next to the future North-South highway and the mature industrial estates of Woodlands and Senoko. Businesses can tap the residential catchment from the surroundings," said CBRE director, industrial and logistic services, Bernard Goh.
Besides their superior location, the 30-year leasehold Gambas sites are zoned for Business 1 use, which are relatively scarce on the confirmed list of this year's Industrial GLS Programme. The zoning typically allows light and clean industrial use. Moreover, strata subdivision is allowed, with the minimum strata size set at 150 square metres gross floor area.
For the Tuas sites, strata subdivision is not allowed in the first five years after the projects receive Temporary Occupation Permit. Both sites are being sold on tenure of 21 years and nine months, and zoned for Business 2 development, which allows for heavy industrial use. They have a 1.0 plot ratio (ratio of maximum gross floor area to land area).
The Gambas sites have 2.5 plot ratio. CBRE's Mr Goh expects them to fetch at least three bids each at tender, with the winning bid likely to be in the $70-80 per square foot per plot ratio (psf ppr) range.
SLP International executive director Nicholas Mak predicts that Parcel 1, which is next to the Ark@Gambas project, could draw five to nine bids with the highest around $100-110 psf ppr. Parcel 2 nearby is likely to attract a higher top bid of $108-115 psf ppr, with six to 10 bids in all, due to its regular shape and larger size.
Colliers International director Chia Siew Chuin reckons that each Gambas plot may draw three to five bids. While strata subdivision is allowed, the seller's stamp duty on industrial properties and the Total Debt Servicing Ratio framework have caused buyers to adopt a wait-and-see attitude in terms of acquiring strata industrial units for investment and owner-occupation. "To price the finished product competitively and move sales, developers would have to be more circumspect with their bids."
Ms Chia predicts 8-10 bids each for the plots at Tuas South Street 6 and Tuas South Street 7. SLP's Mr Mak said that the Street 7 site could be more popular due to its dual frontage (it also faces Tuas South Avenue 7). He forecasts its winning bid at $88-95 psf ppr, while the other plot may fetch $84-90 psf ppr. For both plots, Mr Goh expects five to 10 bids each with the top bids around $50-70 psf ppr. The tenders for the Tuas plots close on Oct 10 and those for the Gambas sites, on Oct 17.
Published August 30, 2013
Four industrial sites put up for tender
By Kalpana Rashiwala [email protected]
THE government has released four industrial sites for tender - two in Gambas Crescent in the Sembawang/Woodlands area and two in Tuas South. These are the first four plots to be offered under the confirmed list of the second-half 2013 Industrial Government Land Sales (GLS) Programme.
Property consultants generally expect the Gambas land parcels - located about 700 metres from Sembawang MRT Station - to fetch higher winning bids than those in Tuas.
"The Gambas parcels are conveniently located next to the future North-South highway and the mature industrial estates of Woodlands and Senoko. Businesses can tap the residential catchment from the surroundings," said CBRE director, industrial and logistic services, Bernard Goh.
Besides their superior location, the 30-year leasehold Gambas sites are zoned for Business 1 use, which are relatively scarce on the confirmed list of this year's Industrial GLS Programme. The zoning typically allows light and clean industrial use. Moreover, strata subdivision is allowed, with the minimum strata size set at 150 square metres gross floor area.
For the Tuas sites, strata subdivision is not allowed in the first five years after the projects receive Temporary Occupation Permit. Both sites are being sold on tenure of 21 years and nine months, and zoned for Business 2 development, which allows for heavy industrial use. They have a 1.0 plot ratio (ratio of maximum gross floor area to land area).
The Gambas sites have 2.5 plot ratio. CBRE's Mr Goh expects them to fetch at least three bids each at tender, with the winning bid likely to be in the $70-80 per square foot per plot ratio (psf ppr) range.
SLP International executive director Nicholas Mak predicts that Parcel 1, which is next to the Ark@Gambas project, could draw five to nine bids with the highest around $100-110 psf ppr. Parcel 2 nearby is likely to attract a higher top bid of $108-115 psf ppr, with six to 10 bids in all, due to its regular shape and larger size.
Colliers International director Chia Siew Chuin reckons that each Gambas plot may draw three to five bids. While strata subdivision is allowed, the seller's stamp duty on industrial properties and the Total Debt Servicing Ratio framework have caused buyers to adopt a wait-and-see attitude in terms of acquiring strata industrial units for investment and owner-occupation. "To price the finished product competitively and move sales, developers would have to be more circumspect with their bids."
Ms Chia predicts 8-10 bids each for the plots at Tuas South Street 6 and Tuas South Street 7. SLP's Mr Mak said that the Street 7 site could be more popular due to its dual frontage (it also faces Tuas South Avenue 7). He forecasts its winning bid at $88-95 psf ppr, while the other plot may fetch $84-90 psf ppr. For both plots, Mr Goh expects five to 10 bids each with the top bids around $50-70 psf ppr. The tenders for the Tuas plots close on Oct 10 and those for the Gambas sites, on Oct 17.