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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