Wednesday, February 6, 2013

Industrial, food sites up for sale in Jurong


TWO industrial land plots were launched for sale this week at Buroh Crescent and Tuas Bay Walk.

The Straits Times
February 2, 2013

TWO industrial land plots were launched for sale this week at Buroh Crescent and Tuas Bay Walk.

Both sites are on 30-year leases and zoned Business 2 (B2), meaning they are suitable for heavy industrial use.

The 1.77ha parcel in Buroh Crescent is in an established industrial estate in Boon Lay and has a maximum permissible gross plot ratio of 2.5.

It is the first site where developers will have to comply with new regulations that require them to build a minimum number of large units.

The successful tenderer must set aside some of these units for companies identified by government agencies and may have to offer reservations at no cost or unconditional rights of first refusal.

This is onerous for developers, said Mr Lee Sze Teck, senior manager at property firm Dennis Wee Group. He said bids are likely to be cautious, given the poor manufacturing outlook, and may range from $80 to $100 per sq ft per plot ratio (psf ppr).

SLP International research head Nicholas Mak said the site's irregular shape could draw just three to six bids, with prices from $100 to $110 psf ppr.

The other plot, a 0.58ha plot at Tuas Bay Walk, is zoned for food factories. It has a maximum permissible gross plot ratio of 1.7.

Analysts said food factory sites were rare, so demand would likely be strong from both developers and end-users.

Mr Lee said bids could range from $70 to $100 psf ppr.

There are 11 industrial sites left on the Government Land Sales (GLS) confirmed list for the first half of this year. There are also nine sites on the reserve list, two of which were carried forward from the GLS reserve list for the second half of last year.

The tenders for both sites will close at 11am on March 14.


Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg

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