http://www.straitstimes.com/archive/...-sale-20140827
Woodlands industrial site draws just 4 bids; Tuas parcel for sale
Published on Aug 27, 2014 1:42 AM
AS THE tender for a large light industrial site in Woodlands closed yesterday after slack bidding, a few small sites in Tuas suitable for heavy industrial use are in the pipeline.
Only four offers came in for the 1.57ha land parcel at Gambas Crescent (Parcel 4) near Sembawang MRT station. All were lower than expected. The highest, lodged by NSS Realty, was $83 per sq ft (psf) per plot ratio (ppr), below analysts' predictions of $90 to $120 psf ppr.
R'ST Research director Ong Kah Seng said that since Far East Organization already owns the three parcels next to the plot, it is likely that developers saw there was "little mileage in acquiring the fourth parcel at high land costs".
Even Far East saw fit to offer only $66 psf ppr through its unit Grow-Tech Properties, making it the second-highest bidder. Its bid was about 20 per cent lower than the top offer. It had paid $134 psf ppr for Gambas Crescent Parcel 1, $127 psf ppr for Parcel 2 and $102 psf ppr for Parcel 3.
Mr Ong said NSS Realty may have put in a higher bid because it wanted to secure one of the last light industrial sites to be launched in state tenders this year.
All the industrial sites slated to go on sale in the second half of this year are zoned for heavy industrial use, he noted.
JTC Corporation yesterday launched one of them for sale. The 0.8ha site at Tuas South Street 9 has a tenure of 20 years and nine months and is zoned for "Business 2" (B2) development, which indicates it is suitable for heavy industries. Analysts expect it to fetch five to 10 bids, with a top offer of $60 to $75 psf ppr. The tender closes on Oct 21.
Another industrial B2 site, at Tuas South Street 11, has been triggered for sale from the industrial government land sales programme's reserve list, JTC said, as one developer has committed to bid at least $6 million for the 0.9ha plot, which has a leasehold of 20 years and 10 months. This works out to $62 psf ppr.
Analysts said this site could attract seven bids, and the top offer could come in at $60 to $75 psf ppr. A site on the reserve list goes on sale only if a developer lodges a minimum acceptable bid.
The parcel will be launched for sale by public tender in the middle of next month, JTC said.
It added it has put a nearby 0.8ha industrial B2 site at Tuas South Street 11 on the reserve list for the second half of this year. That site has a lease term of 20 years and four months.
SLP International research head Nicholas Mak said all three sites would likely attract bids from end-users due to their small size.
MELISSA TAN