JTC launches three industrial land parcels for public tender

JTC Corporation on Wednesday launched the sale of three industrial land parcels for public tender. The sites are located at Woodlands Avenue 10 and Tuas South Street 8.

Measuring 1.07 hectares, the plot off Woodlands Avenue 10 has a lease term of 30 years and a maximum permissible gross plot ratio of 2.5.

Tan Boon Leong, executive director for industrial services at Colliers International said the site is an established industrial enclave in Woodlands, and would attract both developers and end-users.

He said around five to seven bidders could compete for the site, which may fetch between S$75 psf ppr to over S$100 psf ppr, based on previously transacted properties with similar lease term such as the Sunview Road site in Jurong.

Mr Tan said the Woodland Avenue 10 site has a gross floor area of around 288,000 sq ft and could be made into either a flatted or ram-up development. Break even cost could be between S$220 psf and S$240 psf, he added.

Meanwhile, plots 8 and 18 at Tuas South Street 8 were also launched for sale. Both measure less than 0.5 hectare with lease term of 22 years 7 months, and a maximum permissible gross plot ratio of 1.0.

JTC said these smaller plots are for industrialists who need to “custom-build their own facilities”.

Mr Tan said the site could generate between eight and ten bids given the strong demand from end users. Tender prices could range from S$50 to S$70 psf ppr, he added.

It is not the first time that JTC offered sites with lease terms of 22 years. It said having the tenure capped at 30 years will “help make industrial property more affordable for industrialists and also to increase the government’s flexibility for land redevelopment.”

Mr Tan believes the move is also to “help fend off speculators and stabilise industrial property prices, encourage fair play and get more end users to participate in the bidding exercises.”

All three sites are zoned for Business-2 development with project completion periods of 60 months.

The tenders will close at 11.00am on December 12 for the Tuas South sites and December 26 for the Woodlands site.

Source : Channel NewsAsia – 31 Oct 2012

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