Seven bids for tender at industrial site

The Urban Redevelopment Authority (URA) has closed the tender for an industrial site at Pioneer Road North and Soon Lee Street with seven bids received.

KNG Properties submitted the highest bid of S$64.5 million or around S$176 psf/plot ratio.

The next highest bid came from NSS Development, which bid nearly S$60 million.

The site was launched for public tender on June 16 on a 30-year lease.

The land parcel has a site area of more than 17,000 sqm and a maximum permissible gross plot ratio of 2.0.

It was originally on the Reserve List of the Government Industrial Land Sales Programme.

The URA said it would decide on the winning bidder at a later date.

“The latest bid by KNG is significantly higher than the price it paid for the earlier two sites. KNG will have a dominating presence in the area if it is awarded the subject site. As such, it is not surprising that KNG placed such a strong bid for the subject site,” said Mr Bernard Goh, director, industrial and logistic services at CBRE.

He said the top bid is 7.3 per cent higher than the second highest bid of almost S$60 million (S$164 psf/plot ratio) submitted by NSS Development.

The top bid is also more than double the application price of S$65 psf/plot ratio.

Source : Today- 14 Jul 2011

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