Friday, October 30, 2009

Industrial site in Jurong West for sale

THE Urban Redevelopment Authority (URA) will put a 30-year leasehold industrial site in Jurong West up for tender.

The plot is at Pioneer Road North and Soon Lee Drive, near Pioneer MRT station. It became available for sale through the reserve list on Oct 30 last year.

URA said yesterday it has received an application from a developer for the 18,958.8 sq m site, which has a maximum gross plot ratio of two.

The unnamed developer committed to bid at least $8.2 million or about $20 per sq ft per plot ratio (psf ppr).

The site is zoned for Business 2 development – a range of clean, light and general industrial uses.

There has been healthy demand for recent industrial sites triggered for sale. For instance, a plot in Kaki Bukit Road 2 attracted 18 bids when the tender closed in August, while one at Woodlands drew eight bids when its tender closed in July.

Going by these results, Colliers International director (industrial) Tan Boon Leong expects ‘a handful’ of bids for the Pioneer Road North site.

This is because the absolute price is unlikely to be high and there is a shortage of good industrial sites, he said. But he does not expect competition for it to be as stiff as that for the more centrally located Kaki Bukit site.

Mr Tan reckons bids for the Pioneer Road North site are unlikely to go beyond $22.4 million or $50-55 psf ppr.

URA will launch the public tender for the site in about two weeks.

Source: Business Times, 30 Oct 2009

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