Published September 28, 2012

JTC releases 3 industrial sites for sale by tender

Serangoon North plot is zoned for Business 1, Tuas plots for Business 2

By zeinab yusuf saiwalla

JTC Corporation released three industrial sites for tender yesterday, through the confirmed list of the Industrial Government Land Sales Programme.

The sites are a plot at Serangoon North Avenue 5 and two plots at Tuas South Street 8.

The 0.75ha site in Serangoon North has a 2.5 plot ratio (ratio of maximum permissible gross floor area to land area).

It is zoned for Business 1 development, which means it is for light and clean industrial uses that do not impose a nuisance buffer of more than 50m and can therefore be found in selected housing estates such as Bukit Batok and Woodlands. The plot is being sold on 30-year-leasehold tenure

Savills Singapore's director of industrial and business space, Dominic Peters, expects the tender to garner about five bids with the highest bid at around $100-$120 per square foot per plot ratio (psf ppr).

He said: "The site is quite attractive, because it is within a cluster of established industrial and housing estates."

Colliers International director (industrial) Tan Boon Leong also expects strong demand and estimates six to eight bidders with a top bid around $120-$150 psf ppr.

The two plots of land in Tuas South are zoned for Business 2, which means they may be used for heavy industries that have a much greater impact on the environment, where the users will need to impose nuisance buffers of more than 50m.

Each of the Tuas plots has a tenure of 22 years and eight months, measures 0.3ha and has a 1.0 plot ratio.

"These smaller plots with shorter tenures are targeted at industrialists who need to custom-build their own facilities. This is also in line with the government's efforts to make industrial property more affordable," JTC said.

Given the fact the the Tuas sites are not in prime locations, Mr Tan expects both plots to remain more affordable and estimates the tender to attract less than 10 bidders with a top bid of $45-$60 psf ppr.

"The sites in Tuas will probably attract the end users from the marine industry," he added.

R'ST Research director Ong Kah Seng, however, has an estimate of $50-$70 psf ppr.

"Although very fundamentally different from Jurong, the isolation feel of Tuas can slightly reduce in the further horizon as rejuvenation and extensive development of Jurong East takes shape with comprehensive work-live-play offerings," said Mr Ong.

"Industrialists in Tuas may also increasingly find that this is still a very 'specu-vesting-free' enclave due to its extreme location, and those who have short-tenure industrial property may see limited property price upside but are able to own an asset to minimise uncertainty from rental fluctuations."

Strata subdivision is not allowed for the first 10 years following the completion of the project on the Serangoon North site, and for the first five years following the completion of the project on the two Tuas South sites.

Thereafter strata subdivision may be allowed subject to the authorities' approval and with the condition that the minimum strata size shall be 150 square metres.

The tender for all three sites will close on Nov 23 at 11am.