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Thread: Three 30-year multi-use industrial sites released

  1. #1
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    Default Three 30-year multi-use industrial sites released

    http://www.straitstimes.com/archive/...eased-20140625

    Three 30-year multi-use industrial sites released

    Analyst expect more bidding interest for Gambas Crescent, Tuas South Ave 7 plots

    Published on Jun 25, 2014 1:12 AM

    By Melissa Tan


    THREE industrial plots rolled out for sale yesterday are expected to draw moderate interest from developers and industrialists, analysts said.

    All three sites are on 30-year tenures and can be turned into multiple-user developments.

    The Urban Redevelopment Authority (URA) and JTC Corporation (JTC) launched one industrial site at Gambas Crescent in Sembawang and two plots at Tuas yesterday under the industrial government land sales programme (IGLS) for the first half of this year.

    The 1.57ha site at Gambas Crescent Parcel 4 is zoned for "Business 1" (B1) development, making it suitable for lighter industries. It is on the confirmed list, meaning it will go on sale regardless of demand.

    Analysts expect three to six bids for the plot, with the highest bid coming in at between $90 and $120 per sq ft per plot ratio (psf ppr).

    SLP International research head Nicholas Mak pointed out that this was the fourth parcel along Gambas Crescent to be sold within a year, and that the other three sites were all bought by Far East Organization last year.

    "It is highly likely that Far East Organization will bid aggressively for this site in order to maintain its market dominance in the area," he said. "There is also ample supply of B1-zoned industrial space in this part of Woodlands."

    However, R'ST Research director Ong Kah Seng said that other developers may still bid "optimistically" for the site as it is the last B1 site to be launched this year.

    Also on the confirmed list is a 2.57ha site off Tuas South Avenue 7. The parcel is zoned for "Business 2" (B2) development, making it suitable for heavier industrial use.

    Analysts expect it to fetch four to seven bids and the top offer to lie in the range of $75 to $85 psf ppr.

    The plot's large size will appeal to both contractor-developers and major industrialists, said Mr Ong. He said that contractor-developers could use the space for operations or storage, depending on property market conditions.

    Analysts expect bidding interest to be lower for the third site, which is off Tuas South Avenue 14 and is zoned B2. The 3.33ha parcel is on the reserve list, meaning that it goes on sale only if a developer lodges a minimum acceptable bid.

    Mr Mak said the site was unlikely to be triggered for sale "any time soon" given its large size and the fact that it is just across the street from the Tuas South Avenue 7 plot.

    Tenders for the Gambas Crescent site and the Tuas South Avenue 7 site will both close on Aug 26.

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  2. #2
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    Default Fourth Gambas site, two Tuas South plots for sale

    http://www.businesstimes.com.sg/arch...-sale-20140625

    Published June 25, 2014

    REAL ESTATE

    Fourth Gambas site, two Tuas South plots for sale

    Consultants split whether Far East will bid again for Gambas site

    By lee meixian

    [email protected] @LeeMeixianBT


    ANOTHER Gambas Crescent industrial parcel has been launched for sale - the fourth in the area to be offered in the span of a year.

    The three earlier adjacent sites were all bought by Far East Organization in 2013, leading industry watchers to speculate whether the property giant will again bid to build a stronghold in the area.

    The 30-year lease, 15,665 square metre site, located right next to the latest sold Parcel 3, was released by the Urban Redevelopment Authority (URA) yesterday. It has a maximum gross plot ratio of 2.5 and is zoned for Business-1 development, or light industrial use.

    Property consultants are split on whether Far East will bid aggressively for it this time around. SLP International executive director Nicholas Mak, for instance, believes it will, but R'ST Research director Ong Kah Seng thinks there is a possibility that it may not place a bid for the site.

    "Far East already has territorial presence and is confident of setting factory selling prices in the locality. There's no major need to own Parcel 4, although it will perfect their picture in the area.

    "Also actually, there's little that a developer can benefit from dominating a locality of industrial projects ... Territorial presence of industrial projects does not deliver the type of premium and intangible positioning that residential projects do for a developer," he said.

    But taken as a whole, analysts expect the ample supply of B1-zoned industrial space in Woodlands to subdue bidders' interest. They expect the site to attract three to six bids, and a winning bid of $90 to $120 per sq ft per plot ratio (psf ppr).

    The last remaining site on the confirmed list for the H1 2014 Industrial Government Land Sales Programme, also released yesterday, is located off Tuas South Avenue 7 (Plot 12).

    The 30-year lease plot is 25,700 sq m and has a maximum gross plot ratio of 2.0. This site is zoned Business-2, for heavier industrial use. Its proximity to the future mega-port at Tuas and fairly large size are expected to attract established major industrialists. Analysts expect three to six bids, with a top bid of $75 to $85 psf ppr.

    Another reserve list site off Tuas South Avenue 14 (Plot 1) has also been launched. Also zoned B2, the 33,300 sq m plot has a 30-year tenure and a maximum gross plot ratio of 2.0.

    Sites on the reserve list are launched for tender only upon successful application by a developer, while confirmed list sites are launched according to schedule, regardless of demand.

    All three sites are meant for multiple-user developments, given the large industrial space that can be developed on each of them, SLP's Mr Mak noted.

    The tender for the Gambas Crescent site closes at noon on Aug 26, while applications for the Tuas South sites close at 11am on the same day.

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