THE Urban Redevelopment Authority yesterday launched the sale of a second transitional office site at Tampines Concourse/Tampines Avenue 5.The 1.15-hectare site (see map) located in Tampines Regional Centre has a gross plot ratio of 1.0, giving a maximum permissible gross floor area of 124,000 sq ft. The site is available on a 15-year lease and is being tendered out for a transitional office building development.
The URA said the three-storey building, which can be built within a year, can be adapted for multi-tenant use, or custom fitted for a single end-user. The authority believes this can help meet the strong demand for office space.
“With the current absorption rate of office space at 91.9 per cent, coupled with a shortage of Grade A office space in the prime area, demand for suburban offices with good location and well-developed infrastructure is in strong demand,” said Mr Nicholas Mak, director of research and consultancy, Knight Frank.
“The office space that would be developed on the site is likely to be attractive to banks and financial institutions to house their back-room operations,” he added.
The first transitional office site launched this year was at Scotts Road and it attracted 11 bidders, with Scotts Spazio tendering the highest bid of $37 million, working out to a $219 per square foot per plot ratio.
Mr Mak expects the Tampines site to achieve similar figures, although it might attract fewer bidders.
“We estimate that the top bids for this site to be between $24.8 million to $32.2 million. That is equivalent to $200 to $260 psf ppr. The developer can expect a yield of about 7 to 8 per cent,” said Mr Mak.
The site is a stone’s throw away from the Tampines MRT station and bus interchange. It is also easily accessible via the Tampines Expressway, East Coast Parkway and the Pan Island Expressway.
The site has a six-week tender period, which closes at noon on Nov 6. The selection of the winning tender bid will be based on the tendered land price.
Developer’s Packets that contain the details of the site, development requirements and tender conditions can be purchased at the URA centre’s customer service counter at $105 each.
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