Top bid of $95.07 per square foot per plot ratio comes from Wee Hur Development
A TENDER for a 60-year leasehold industrial site at Kaki Bukit Avenue 4 has attracted a top bid of $95.07 per square foot per plot ratio (psf ppr) from Wee Hur Development.
Its bid was 17.8 per cent above the next highest offer of $80.69 psf ppr by Winland Pte Ltd, whose directors include Ng Teng Yeng, brother of the late property tycoon Ng Teng Fong.
The tender for the three-hectare site, which is zoned Business 2, attracted nine bids. The lowest bid, by Qing Quan Pte Ltd, was $48.28 psf ppr.
Wee Hur Holdings executive chairman and managing director Goh Yeow Lian told BT his company’s proposed scheme envisages a seven- to eight-storey development comprising mostly ramp-up factories, but with some flatted factories on the upper levels. Both types of space will be strata titled for sale. ‘We’re looking at an average selling price of over $300 psf of strata area,’ he said.
Mr Goh said that assuming Wee Hur is awarded the site, this would mark the group’s second industrial development on a site bought at a state tender. Last year, it clinched a plot at the corner of Admiralty Road West and Woodlands Avenue 4 on which it is building a ramp-up and flatted factory development known as Harvest at Woodlands. Strata units in this project were launched for sale in June.Other bidderes who took pat in yesterday’s tender include Sim Lian Development, Soilbuild Group, Trans-Cab Services and Kng Land.
‘The fact that nine bids were received at the latest tender shows there is still strong interest in industrial property development, especially in a mature estate like Kaki Bukit,’ said Colliers International director (industrial) Tan Boon Leong. ‘The site is also not too far off from the proposed Kaki Bukit MRT Station. As well, some bidders may be counting on the latest government measures aimed at cooling demand in the residential property market to spur some investors to look at industrial properties,’ he added.
CBRE Research director Leonard Tay noted that the last industrial government land sale site in the area, at Kaki Bukit Road 2, was awarded at $105 psf ppr in August last year. This was a 30-year leasehold site where Kng Development Pte Ltd is currently constructing the First East Centre. Temporary Occupation Permit for the factory is expected to be in 2012, he added.
Source : Business Times – 15 Oct 2010