Published December 29, 2012

Woodlands industrial plot on reserve list

By Mindy Tan

A 3.9-HECTARE industrial plot at Woodlands Ave 12 has been made available for application on the reserve list of the Government Industrial Land Sales Programme.

Located next to OKH Holding's Woodlands Horizon, the site, which is zoned Business 1, can be developed for various uses, such as light industry, clean industry, utilities or telecommunications.

The 30-year leasehold site has a maximum gross floor area (GFA) of about 1,055,645.3 square feet (sq ft) and a maximum building height of 61 metres above mean sea level.

Under the government's reserve list system, the land parcel will be released for sale only if the criteria for triggering of the site are met. However, consultants say that it is unlikely the site will get triggered.

Lee Sze Teck, senior manager, training, research and consultancy, at DWG, said the size of the site and the upcoming supply of industrial space in the area, based on sites sold, may stand in the way of the subject site being triggered.

Located along Woodlands Ave 12 are three sites - Woodlands 11, which was sold to Boon Keng Developments in April 2010 (GFA 868,628 sq ft, abutting sites Woodlands Horizon and Primz Bizhub, which were sold to OKH Holdings in 2011 (combined GFA of about 1.06 million sq ft). All three sites have a 60-year leasehold tenure and are zoned Business 1.

Earlier this month, a site off Woodlands Ave 10 (GFA 288,069 sq ft) received a top bid of $31.7 million from Bohai Investments (Sengkang) and Punggol Drive Investments.

"(Based on) the size of the subject site, I don't think it will be triggered ... (Combined with the four sites previously sold), you are looking at over two million sq ft of space coming up. If this gets triggered, another one million sq ft GFA of industrial space will be added to the area," said Mr Lee.

Colliers International's executive director of industrial services, Tan Boon Leong, said he expected potential bidders to watch sales at the outstanding sites. Beyond the three sites listed above, there is also Ark@Gambas, a nine-storey light industrial building that is developed by HLS Development, said Mr Tan.

"I don't think the site will be triggered soon, unless the supply of 60-year factory space has been depleted and there is still great demand in the northern area," said Mr Tan.

If the subject site gets triggered, Mr Tan said he expected the trigger bid to be in the price range of $50-$55 per square foot per plot ratio (psf ppr).

But Nicholas Mak, executive director of research and consultancy at SLP International, reckoned that the site was "fairly attractive", as it is located in a growing industrial estate.

"The site's close proximity to the Woodlands Causeway will facilitate convenient linkage to and from Malaysia both for the transportation of supplies and source of labour from Malaysia. Its location near the established Woodlands residential estate will also enhance the employment catchment for the future industrial employers at the industrial development on this site," he said.

"Although the land tenure of the subject site is 30 years, demand for industrial space is expected to remain strong," he added.

Mr Mak expects the subject site to fetch a winning bid of $110-$126 psf ppr and attract four to eight bidders.