JTC to launch six industrial sites in second half of year

JTC Launchpad at One-North. JTC is set to launch six industrial sites under the confirmed list of the Industrial Government Land Sales during the second half of 2018.
JTC Launchpad at One-North. JTC is set to launch six industrial sites under the confirmed list of the Industrial Government Land Sales during the second half of 2018.ST PHOTO: KUA CHEE SIONG

Six industrial sites will be launched under the confirmed list of the Industrial Government Land Sales (IGLS) programme by JTC for the second half of this year. Another seven sites will be made available for application under the reserve list, said the Ministry of Trade and Industry yesterday.

All in, the land area of these 13 sites, which are zoned for Business-2 use, add up to 12.59ha.

Business-2 sites may be used for clean industry, light industry, general industry, warehouse, public utilities and telecommunications, and other public installations.

Special industries, such as the manufacture of industrial machinery, shipbuilding and repairing, may be allowed in selected areas subject to evaluation by the competent authority.

All six sites on the confirmed list, which total 4.09ha, have a land tenure of 20 years each and a gross plot ratio of 1.4 or 2.5. Four sites on the reserve list have a land tenure of 30 years each and a gross plot ratio of 2.5.

Sites on the reserve list are triggered for sale when an interested party submits an application with a minimum purchase price that is acceptable to the Government, or if more than one unrelated party submit minimum purchase prices that are close to the Government's reserve price for the site within a reasonable period.

Cushman & Wakefield senior director for research Christine Li noted that the second half-year offering was very similar to that in the first six months.

All six sites on the confirmed list, which total 4.09ha, have a land tenure of 20 years each and a gross plot ratio of 1.4 or 2.5. Four sites on the reserve list have a land tenure of 30 years each and a gross plot ratio of 2.5.

"Although on the surface, it seems that the Government is taking a prudent approach by maintaining the supply of the land sales. On closer examination of the bidding activities, perhaps the Government could have scaled back the confirmed list, given the lack of interest in the first-half 2018 IGLS sites."

Out of the four sites in the first half-year that have already tendered and closed, three received no bids, she pointed out.

"We reckon that the lack of enthusiasm by industrialists towards IGLS offerings in the first half-year will continue into the second half-year."

A version of this article appeared in the print edition of The Straits Times on June 27, 2018, with the headline 'JTC to launch six industrial sites in second half of year'. Print Edition | Subscribe