Two industrial land sites offered for sale

The Government released two more land parcels yesterday in its efforts to offer more choices for industrial development.
The Government released two more land parcels yesterday in its efforts to offer more choices for industrial development. PHOTO: ST GRAPHICS

The Government released two more land parcels yesterday in its efforts to offer more choices for industrial development.

One confirmed list site in Tampines and one reserve list site in Woodlands have been launched by JTC Corporation under the Industrial Government Land Sales (IGLS) programme for the second half of the year.

The 0.41ha site in Tampines Industrial Drive (Plot 7) is zoned for Business 2 (B2) development and has a 20-year tenure with a maximum permissible gross plot ratio of 1.4. The tender for this parcel closes on Jan 19 at 11am.

The 1.61ha in Woodlands Height is zoned for Business 1 (B1) development and has a 30-year tenure with a maximum permissible gross plot ratio of 2.5.

B1 developments are suitable for lighter industries, compared with B2 ones.

Under the reserve list system, a land parcel will be released for sale only if the Government receives an acceptable minimum offer.

SLP International executive director Nicholas Mak said that the number of bidders for comparable IGLS land tenders in the Tampines Industrial Drive area had been fairly stable in recent months, attracting about three to four bids each.

However, the recent tender for Tampines Industrial Drive (Plot 12), which closed last month, attracted just two bids.

Mr Mak estimated the top bid for the site in Tampines to be between $3.7 million and $4.1 million ($60 to $66 per sq ft per plot ratio).

And even though the site in Woodlands is fairly near the upcoming Woodlands South MRT station, "it is unlikely to be triggered for tender in the next six to 12 months due to the large supply of industrial space in Woodlands, which is either newly completed or currently under development", said Mr Mak.

Based on current market conditions, if this site were sold on the open market by tender today, the land price could range from $28.2 million to $30.4 million ($65 to $70 per sq ft per plot ratio), he said.

A version of this article appeared in the print edition of The Straits Times on November 25, 2015, with the headline 'Two industrial land sites offered for sale'. Print Edition | Subscribe