JTC puts up Serangoon North site for sale
JTC Corp yesterday offered a 0.95-hectare plot of land at Serangoon North Avenue 4 for sale through a tender which closes on Dec 28.
The site is being offered on a 60-year lease and has 1.4 maximum gross plot ratio, which means it can be redeveloped into a new project with a maximum gross floor area of 142,527 sq ft. It is zoned for Business 1 use, which covers clean industry, light industry, public utilities, telecoms uses or other public installations for which the authorities do not impose a nuisance buffer greater than 50 metres.
Colliers International managing director Dennis Yeo reckons the site could fetch $50-60 psf of potential gross floor area - reflecting absolute bid amounts of $7.1 million to $8.6 million. These unit land prices come close to the levels fetched for industrial sites in the Ubi location during the market peak in the 1996-1997 period, he added. His basis for predicting strong bids for the latest Serangoon North plot is that it is small with a relatively low plot ratio, so the absolute investment sum is small. This means the plot will appeal both to end users as well as industrial property developers, which should result in more competition for the site. Another attraction of the site is its longer tenure of 60 years - double the 30-year tenure for some industrial sites being offered by the State.
The latest Serangoon North Avenue 4 site is the second of three industrial plots on the confirmed list of the government’s land sales programme for H206. The tender for the first plot, a 30-year leasehold site at Changi North St 1 zoned for Business 2 use, closed on Nov 10. It drew four bids. The highest bidder was Global Orion Properties Ltd, which offered $4.3 million or about $27 psf per plot ratio. The other three bidders were Soilbuild Group Holdings, Eastpoint Development and Mapletree Investments.
Source : Business Times - 18 Nov 2006
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