ST : Industrial site in Balestier up for sale

Nov 19, 2009

Industrial site in Balestier up for sale

A PIECE of industrial land in Balestier, which can be converted into a residential project, has been put up for sale.

The freehold 27,838 sq ft plot can be turned into a development comprising some 100 apartments with an average size of 780 sq ft each, said marketing agent Credo Real Estate.

The four owners of the four three-storey terrace factory units at 6 Jalan Ampas are hoping for $27 million to $30 million.

But the buyer of the land will also have to pay a development charge of about $18.7 million for the rezoning of the site.

The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft per plot ratio. At this price, the developer's breakeven point is $950 to $1,000 psf, said Credo's deputy managing director, Mr Tan Hong Boon.

The site is near the Shaw Plaza mall and recently-launched Prestige Heights, where some units were sold in October at a median price of $1,322 psf.

Mr Tan said the four owners could be the first industrial owners in the area to initiate a sale, after the Urban Redevelopment Authority's review of the area's 15 industrial buildings in July last year.

The URA said it was prepared to consider proposals to change the use of the site from industrial to residential purposes at a gross plot ratio of 2.8.

But Mr Tan said the hefty development charge may mean it will be a while before the owners of the area's 14 other industrial buildings find a collective sale worthwhile.

Meanwhile, the collective sale of The Meyer Place condo off Meyer Road has yet to be wrapped up. The tender closed on Oct 28 with no firm bids. There is apparently an offer that is $6 million below the owners' reserve price of $65 million.