Tuesday, July 20, 2010

URA launches site in Kaki Bukit for tender

THE Urban Redevelopment Authority (URA) has launched a 3ha site at Kaki Bukit Avenue 4 for tender under the confirmed list.

The plot, with a 2.5 plot ratio, is being offered on 60-year-leasehold tenure and is designated for Business 2 use, which means it can be developed for various uses such as light and general industry, warehousing, utility or telecommunications.

The tender for the land parcel will close on Sept 14.

Colliers International director (industrial) Tan Boon Leong expects the site to fetch bids of $60-$70 per square foot of potential gross floor area, or $48.5 million to $56.5 million.

The unit land price is below the $105 per square foot per plot ratio (psf ppr) fetched for a 30-year-leasehold Business 2 plot at Kaki Bukit Road 2 sold by the government in August last year.

'The earlier site was better located, in the main thoroughfare of the Kaki Bukit industrial area. It was also much smaller at about one hectare and a lower plot ratio of 1.0, resulting in the gross floor area of 115,384 sq ft, compared with 807,833 sq ft for the latest plot. For these reasons, I expect the latest site to fetch a lower unit land price despite its longer leasehold tenure.'

Mr Tan also believes that the confirmed-list site at Kaki Bukit Avenue 4 will fetch lower bids than a 3.5ha Business 1 site at Ubi Road 1 that was launched for tender in June and whose tender will close on Aug 11. The 60-year-leasehold plot, with 2.5 plot ratio, may fetch bids of $80-$90 psf ppr, he forecasts.

'It enjoys a choice location, about 200-300 metres from Tai Seng MRT Station,' Mr Tan notes.

The Ubi site was released under the confirmed list of the government's first-half 2010 industrial land sales programme.

The second-half confirmed list has three sites. Besides the Kaki Bukit Avenue 4 plot which has just been released, a site at Yishun Street 23 and another plot at Old Toh Tuck Road will be launched for sale in August and October this year respectively. Both are zoned for Business 2 use.

In addition, the reserve list will offer seven industrial plots in locations such as Woodlands, Tuas View, Kaki Bukit, Ang Mo Kio, Pioneer Road North, Ubi and Serangoon North.

While the government releases sites on the confirmed list according to a pre-stated schedule, it launches sites on the reserve list only upon application by developers.

Source: Business Times, 20 Jul 2010

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