Saturday, June 4, 2011

Jurong industrial site to go on sale soon

AN INDUSTRIAL site in Jurong will be launched for sale by public tender in two weeks, after a developer lodged a minimum bid acceptable to the Government.

The 30-year leasehold site is one of a cluster of three sites along Pioneer Road North and Soon Lee Street.

The other two sites have been sold.

The latest site was first made available for sale on Feb 25 as part of the first half-year Government Land Sales reserve list.

It has been zoned for Business 2 developments, which include clean and light industries,warehouses, public utilities and telecommunication uses.

The 1.7ha plot has a maximum gross plot ratio of 2.0 so it could be built to a maximum gross floor area of 3.4ha.

Yesterday, the Urban Redevelopment Authority said a developer had committed to bid at least $23.8 million for the site, which works out to about $77 per square foot per plot ratio (psf ppr).

The commitment triggered the public tender process.

Interested parties will have four weeks from the launch of tender to submit a bid.

One of the two adjoining plots of land, a 30-year leasehold industrial site, drew eight bids in December last year.

The highest bid came from Kng Land, which offered $26.9 million or $87 psf ppr, almost double the application bid of $13.8 million that triggered the tender last October.

The adjoining piece of land was acquired by Kng Realty in December 2009.

A total of eight bids were submitted for that site and the highest bid of $19.4 million was also twice the trigger bid of $8.2 million. This worked out to $48 psf ppr.

Mr Dominic Peters, Savills' director of industrial real estate, expects healthy interest in the third Pioneer Road site.

He said: 'The plot of land is located in a pretty attractive part of Jurong, near the residential estate, MRT stations and other recreational facilities like Jurong Point Shopping Centre and Jurong West Sports and Recreation Centre.'

Mr Tan Boon Leong, Colliers International's director of industrial services, predicted the site could attract between five and eight parties.

He expects the final bid to possibly surpass the $23.8 million trigger bid by up to 80 per cent.

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