BT : Soilbuild submits top bid for Yishun site

Business Times - 14 Apr 2010

Soilbuild submits top bid for Yishun site

SOILBUILD Group Holdings submitted the highest bid for an industrial site at Yishun Avenue 6 in a government tender, the Urban Redevelopment Authority (URA) said yesterday.

There were five bids for the 1.43 hectare plot, which was offered for sale on a 60-year lease.

Soilbuild's $29.29 million bid, which works out to $76 per square foot per plot ratio (psf ppr), was 4 per cent higher than the second highest bid, by KNG Land, which offered $28.28 million, or $74 psf ppr.

The other bidders were Ho Lee Group, OKH Management and Whye Wah Group.

The site, which is on the government's reserve list, has been available since November 2007. It is zoned for Business 1 use, with a maximum permissible gross plot ratio of 2.5.

It was triggered in February after an un-named developer committed to pay at least $11.5 million, or about $30 psf ppr. It was launched for public tender on March 15.

Analysts said then that interest in the parcel - which is across the road from ITE East (Yishun) and near Yishun Industrial Park - would be healthy because industrial space end-users have been looking for land in the north of the island.

In a recent report, CB Richard Ellis said the industrial property market showed signs of improvement in the first quarter. Tenders for four industrial sites were launched. And several industrial Reit players made a few purchases.

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