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18-10-13, 12:42
http://www.straitstimes.com/premium/money/story/grow-tech-bids-big-gambas-sites-20131018
Grow-Tech bids big for Gambas sites
Far East-linked firm outbids rivals by nearly 50% for two industrial plots
Published on Oct 18, 2013
By Cheryl Ong
A DEVELOPER linked to Far East Organization has emphatically outgunned rival bidders in the battle for two adjacent industrial sites in Sembawang.
The bids lodged by Grow- Tech Properties far outstripped market expectations, being about 50 per cent more than the next bidder in both cases.
Tenders for the Parcel 1 and Parcel 2 sites in Gambas Crescent closed yesterday under the second half of this year's Industrial Government Land Sales programme.
Grow-Tech, which is owned by Far East's Ng family, tendered for Parcel 1 at $44.8 million, or $138 per sq ft (psf) per plot ratio (ppr). This was 48.5 per cent more than the $93 psf ppr filed by next- placed Hock Lian Seng Holdings. All in, six developers lodged bids.
Grow-Tech submitted a top bid of $127 psf ppr or $46.3 million for Parcel 2 - 54.4 per cent above second-placed Eco-I, which offered $82 psf ppr or $30 million.
Nine developers lodged bids.
Experts had expected winning bids from $95 to $110 psf ppr for both sites, when they were put up for tender in August.
Both sites have 30-year leases. Parcel 2 is larger at 145,710 sq ft. Parcel 1 is 129,885 sq ft. Both are zoned for light industrial use. The Urban Redevelopment Authority will confirm the winning bid later.
R'ST Research director Ong Kah Seng said the top bids' wide margins confirmed the locality as an established industrial area.
Colliers International executive director of industrial services Tan Boon Leong said the sites' proximity to the Sembawang MRT station could be another draw for developers, as the units would be easily accessible to their occupants.
He also noted that there are only three industrial sites in the Gambas vicinity. The first, where a strata-titled industrial development Ark@Gambas stands, was sold to Hock Lian Seng Holdings for $78.2 million in November 2011.
Once all units at the 60-year leasehold Ark@Gambas have been sold, industrialists seeking a unit in the area will have to look to the new developments on these two sites, Mr Tan said.
Mr Ong added that the factory space developed from the sites is expected to provide users with more affordable options because of their shorter leases.
Experts noted it would not be possible to amalgamate the new developments, although the sites are adjacent. "They are separated by a road," said Mr Tan. "It is likely that they will build strata units on both plots. But since Parcel 2 is bigger and elongated, they might build flatted factories or terraced industrial units there."
Last month, Grow-Tech bought an industrial site at Tuas South Avenue 3 from JTC Corp for $66.8 million. This means the firm would have acquired three industrial sites in two months, after yesterday's tender.
Experts said this could be a bid to replenish its land bank, as Far East's industrial sites in Tuas South have been slowly depleting.
"They have been quite quiet in their industrial bids, but if you study the trends, they are starting to bid again," said Mr Tan.
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Grow-Tech bids big for Gambas sites
Far East-linked firm outbids rivals by nearly 50% for two industrial plots
Published on Oct 18, 2013
By Cheryl Ong
A DEVELOPER linked to Far East Organization has emphatically outgunned rival bidders in the battle for two adjacent industrial sites in Sembawang.
The bids lodged by Grow- Tech Properties far outstripped market expectations, being about 50 per cent more than the next bidder in both cases.
Tenders for the Parcel 1 and Parcel 2 sites in Gambas Crescent closed yesterday under the second half of this year's Industrial Government Land Sales programme.
Grow-Tech, which is owned by Far East's Ng family, tendered for Parcel 1 at $44.8 million, or $138 per sq ft (psf) per plot ratio (ppr). This was 48.5 per cent more than the $93 psf ppr filed by next- placed Hock Lian Seng Holdings. All in, six developers lodged bids.
Grow-Tech submitted a top bid of $127 psf ppr or $46.3 million for Parcel 2 - 54.4 per cent above second-placed Eco-I, which offered $82 psf ppr or $30 million.
Nine developers lodged bids.
Experts had expected winning bids from $95 to $110 psf ppr for both sites, when they were put up for tender in August.
Both sites have 30-year leases. Parcel 2 is larger at 145,710 sq ft. Parcel 1 is 129,885 sq ft. Both are zoned for light industrial use. The Urban Redevelopment Authority will confirm the winning bid later.
R'ST Research director Ong Kah Seng said the top bids' wide margins confirmed the locality as an established industrial area.
Colliers International executive director of industrial services Tan Boon Leong said the sites' proximity to the Sembawang MRT station could be another draw for developers, as the units would be easily accessible to their occupants.
He also noted that there are only three industrial sites in the Gambas vicinity. The first, where a strata-titled industrial development Ark@Gambas stands, was sold to Hock Lian Seng Holdings for $78.2 million in November 2011.
Once all units at the 60-year leasehold Ark@Gambas have been sold, industrialists seeking a unit in the area will have to look to the new developments on these two sites, Mr Tan said.
Mr Ong added that the factory space developed from the sites is expected to provide users with more affordable options because of their shorter leases.
Experts noted it would not be possible to amalgamate the new developments, although the sites are adjacent. "They are separated by a road," said Mr Tan. "It is likely that they will build strata units on both plots. But since Parcel 2 is bigger and elongated, they might build flatted factories or terraced industrial units there."
Last month, Grow-Tech bought an industrial site at Tuas South Avenue 3 from JTC Corp for $66.8 million. This means the firm would have acquired three industrial sites in two months, after yesterday's tender.
Experts said this could be a bid to replenish its land bank, as Far East's industrial sites in Tuas South have been slowly depleting.
"They have been quite quiet in their industrial bids, but if you study the trends, they are starting to bid again," said Mr Tan.
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