BT : Tender soon for Yishun industrial site

Business Times - 24 Feb 2010

Tender soon for Yishun industrial site

By CHEW XIANG

THE Urban Redevelopment Authority (URA) will put a 60-year leasehold industrial site in Yishun up for tender after a developer triggered the sale with a minimum bid of $11.5 million.

The 1.42 hectare plot is located at the corner of Yishun Avenue 6 and Yishun Street 23. It is zoned for Business 1 use, or clean and light industrial and warehouse use and has a maximum gross plot ratio of 2.5.

The industrial site was made available for sale through the Reserve List system in May 2007 and a public tender will be launched in about two weeks, URA said.

The minimum bid price works out to just over $30 per square foot per plot ratio (psf ppr).

Dominic Peters, director, industrial at Savills Singapore, said that the price was within the fair market value of the plot, which he estimates at between $30 and $40 psf ppr, but he expects 'lukewarm response' to the tender due to the location of the site.

Recent industrial land sales have seen strong demand, with a 30-year site at Pioneer Road North drawing eight bids in December. The top bid from Kng Realty was $48 psf ppr.

And a plot in Kaki Bukit Road 2 attracted a record 18 bids when the tender closed in August, while one at Woodlands drew eight bids when its tender closed in July.

The highest bid for the 115,342 square foot Kaki Bukit site was just under $105 psf ppr, from Kng Development.

Wee Hur Development placed the highest bid for the Woodlands site, at $34 psf ppr for the 2.5 hectare plot.

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