http://www.straitstimes.com/archive/...-sale-20140930

Three industrial sites up for sale

Published on Sep 30, 2014 1:38 AM

By Jacqueline Woo


THREE industrial plots tailored mainly to meet the demands of smaller business operators have been put up for sale.

Two sites are on the confirmed list - a 0.8ha parcel in Tuas South Street 9 that has been designated as Plot 50, and a 2.7ha plot in Tampines North Drive 1 (Plot 1).

The third site is a 0.7ha plot in Tuas South Street 6 (Plot 46), which is on the reserve list on the Industrial Government Land Sales programme. Reserve list sites are triggered for tender once an acceptable bid is lodged, while confirmed sites are rolled out regardless of demand.

All three sites have been zoned for "Business 2" (B2) development, which means they are suitable for heavy and more pollutive industrial use.

Plot 50, which has a lease of 20 years and eight months and a maximum gross plot ratio of 1.0, is expected to draw five to 10 bids, said R'ST Research director Ong Kah Seng. He expects the highest bid to come in at between $65 and $75 per square foot per plot ratio (psf ppr).

The plot comes in an "ideal" size to meet the needs of average-scale industrialists and contractor-developers looking for multi-purpose space, said Mr Ong.

"Those who have missed the boat previously (when sites of a similar size were available) will offer a high enough tender price if they are set on winning this 'right-sized' plot," he added.

Plot 1 has a tenure of 30 years and a maximum gross plot ratio of 2.5. It is likely to draw about four to seven bidders and a winning offer from $70 to $82 psf ppr, said Mr Nicholas Mak, executive director of research and consultancy at SLP International.

He pointed to its "attractive" location - in close proximity to the Tampines Expressway and facing the Sungai Api Api River - and the limited supply of B2 industrial space in the eastern part of Singapore.

"However, the large size of this project and the current softer market sentiments could taper developers' interest in this site."

Plot 46, which comes with a lease term of 20 years and four months and a maximum gross plot ratio of 1.0, could earn a top bid of $65 to $75 psf ppr.

"Buyers of sites in Tuas are seeing it shape well into a speculation-free industrial property enclave that caters mainly to end- users," noted Mr Ong.

JTC Corporation said in a statement that the three sites were launched as part of the Government's efforts to "offer more choices for industrial development".

"The different land tenures and sizes cater to industrialists who prefer to purchase strata-titled industrial property as well as those who prefer to have the flexibility to custom-build their own facilities."

The tenders for the two confirmed list sites close at 11am on Nov 24.

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