9 bids received for Woodlands industrial site

The Urban Redevelopment Authority (URA) received a total of nine bids for an industrial site at Woodlands Avenue 12 (Parcel 2) at the close of the tender on Tuesday.

The top bid of S$84.24 million was submitted by OKH Development. It works out to about S$1,636 per square metre.

The second highest bidder came from NSS Properties at S$76.48 million, or S$1,485 per square metre, followed by a joint bid from Qingdao Construction and ZACD Investments at S$61.56 million, or S$1,196 per square metre.

EL Development submitted the lowest bid of S$38 million, or S$738 per square metre.

The site was one of four sites under the confirmed list for the first half of this year and has an area of nearly 20,600 square metres, with a maximum gross plot ratio of 2.5.

It was offered for sale on a 60-year lease on May 3.

URA said it would announce the award of the tender at a later date after the bids have been evaluated.

Commenting on the tender results, CB Richard Ellis (CBRE) said the top bid of S$84.24 million was about 10 per cent higher than the second highest bid, and more than twice the winning bid of S$65.18 million placed by Boon Keng Development for a nearby site at Woodlands Avenue 12 (Parcel 1) in April 2010.

Bernard Goh, director of industrial & logistics services at CBRE, said: “The positive business sentiment for the industrial sector may have caused some investors to divert some funds from residential property to the industrial property. This in turn pushed up the demand for industrial space and industrial land.”

Source : Channel NewsAsia – 28 Jun 2011

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