Thursday, April 12, 2012

Whopping 14 bids for Aljunied industrial site

Business Times: Wed, Apr 11
A 0.63 hectare (ha) industrial site at the junction of Sims Drive and Aljunied Road drew a whopping 14 bids, and a top bid of $43.4 million, or $255.44 per square foot per plot ratio (psf ppr) by Fragrance Biz Space, in spite of the new conditions on strata sub-division for industrial parcels, which came into effect in January.


Assuming Fragrance is awarded the tender, this will be the group's maiden industrial project.


Analysts were largely unsurprised by the good turnout, given the site's qualities.


The site is located in a 'mature estate, and it's a smallish development, that's why tendering was so aggressive. It shows industrial developments are still very strong, even though the government has put in place various new measures,' said Colliers International director (industrial) Tan Boon Leong.


Given that this site is located next to Aljunied MRT, developers will not be allowed to strata sub-divide the development in the first 10 years after the project is completed. For strata sub-divisions after the period, developers must adopt a minimum strata unit size of 1,615 sq ft GFA.


Despite these measures, developers are still bidding as the site's fundamentals, in particular its location, are strong, stressed Mr Tan.


Savills Singapore's director Dominic Peters agreed: 'This is one of the better locations outside of the central business district, and, the site is relatively small.'


The second highest bid, put up by Mezzo Development, came in at $35 million, or $206.05 psf ppr...

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Martin Koh/ Sherry Tang
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