5 sites for sale under Industrial Government Land Sales programme

[princess_morbucks]

http://www.channelnewsasia.com/news/business/singapore/5-sites-for-sale-under/869368.html?utm_source=dlvr.it&utm_medium=twitter

http://www.channelnewsasia.com/image/869400/1383206478000/large16x9/768/432/gambas-parcels.jpg
SINGAPORE: Five sites at Tuas South and Gambas Crescent have been launched for sale under the Industrial Government Land Sales (IGLS) programme on Thursday.
In a joint statement, the Urban Redevelopment Authority and JTC Corporation said the launch is part of the government's continuing efforts to offer more choices for industrial development.

URA and JTC said the three sites at Tuas South Street 10 each have a 21-year-7-month tenure and are zoned for Business-2 development.

Meanwhile, the site at Gambas Crescent (Parcel 3) has a 30-year tenure and is zoned for Business-1 development.

The four sites are released for sale under the Confirmed List of the 2nd half 2013 IGLS programme.

Separately, another site at Gambas Crescent (Parcel 4) is also released for application for sale under the Reserve List of the 2nd half 2013 IGLS programme.

The land parcel has a 30-year tenure and is zoned for Business-1 development.


- CNA/ec

[kane]

30year sounds kinda short.

[JNSYN]

30year sounds kinda short.

Would u invest if 60years?

[kane]

if good yield, then why not. but if 30 years, and if you take the amortisation of the value over 30 years, the yield had better be very good...

[JNSYN]

if good yield, then why not. but if 30 years, and if you take the amortisation of the value over 30 years, the yield had better be very good...

Ark@Gambas which is right at the left end of that Gambas stretch is 60years leasehold. Land bid price is the same as Parcel 2 (30years). Parcel 2 bided by FarEast so probably will not sell cheap.

Ark@Gambas asking $360-$420 depending on ramp-up or flatted factory type.

[Shanhz]

30year sounds kinda short.

to keep costs down, all industrial are 30 yrs gg fwd. the question is after it becomes accepted as the norm, mkt will adjust itself. furthermore, with lower buying price, and assuming rents remain the same (compared to 60 yrs lease), the yield will be higher.

[JNSYN]

to keep costs down, all industrial are 30 yrs gg fwd. the question is after it becomes accepted as the norm, mkt will adjust itself. furthermore, with lower buying price, and assuming rents remain the same (compared to 60 yrs lease), the yield will be higher.

You r right. But issue is developer is bidding it so high that they have to sell close to 60yrs projects. Helping to push up the price for 60yrs'.

30yrs lease with construction 2yrs probably good for own use. As investor better look for 60yrs lease, higher chance to sell later on.

Units still available for Ark@Gambas. No ABSD, have SSD and GST. GST can be overcome.