Industrial Gambas site receives 5 bids

The Urban Redevelopment Authority (URA) has received five bids for the tender of an industrial site at Gambas Avenue / Gambas Crescent.

The top bid for the 21,426.7 square metre (230,635 square foot) site of S$78.17 million was from HLS Development.

The tender for the 60-year leasehold industrial site was launched for tender on 18 October after an unnamed party committed to bid at least S$57 million — or S$99 per square foot per plot ratio — for it.

The site has a maximum GFA of 53,567 sq m (576,595 sq ft).

The top bid represents a unit land price of S$136 psf ppr.

Li Hiaw Ho, executive director at CBRE noted that this is almost four per cent higher than the second-highest bid of S$75.19 million submitted by Elitist Development Pte Ltd and 37.4 per cent higher than the application price.

However, he also noted a nearby 60-year leasehold site along Woodlands Avenue 12 (Parcel 3) was awarded in September 2011 for S$142 psf ppr.

Meanwhile, another site along Woodlands Avenue 12 (Parcel 2) was awarded in June 2011 for S$152 psf ppr.

Mr Li said the top bid for the subject site is 4.2 per cent and 10.5 per cent lower than the price paid for Parcel 3 and Parcel 2 respectively.

“This could be an indication of caution on the part of developers in the face of growing economic uncertainties,” he added.

According to caveats lodged with URA for January to November 2011, eight units in Woodlands BizHub in Woodlands Industrial Park E5 sold for an average price of S$308 psf.

Source : Channel NewsAsia – 17 Nov 2011

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