SLA Selling Four Agricultural Sites

Source : The Business Times, Friday, October 12, 2007

THE Singapore Land Authority (SLA) is selling four agricultural sites at Sungei Tengah near the Farmart Centre, Qian Hu Fish Farm and other farms.

The sites, ranging from 208,206 to 338,955 square feet, have 20-year leases and are for sale by tender. Offers close on Nov 15.

Permitted uses include orchid or ornamental plant production, fish/prawn farming, toad/frog culture, vegetable cultivation and fruit orchard.

Each site can also include a maximum 500 square metres (5,382 sq ft) of gross floor area of commercial use, comprising up to 200 sq m for food and beverage and retail and up to 300 sq m for rustic guest accommodation and/or spa facilities.

‘Feedback from farmers, and our research, shows the sale of agricultural sites with a small amount of commercial use is the best business model for farmers,’ said SLA’s deputy director of land sales Teo Jing Kok. ‘The injection of some commercial use allows farmers to diversify their operation and have an additional source of revenue.’

The sites will be awarded to the highest tenderers whose proposed use is approved.

In December last year, SLA sold three ‘agritainment’ sites - these have a higher commercial component of up to 1,000 sq m - at Lim Chu Kang. HLH Agri R&D was awarded the largest plot of about 548,624 sq ft for $880,000, or $1.60 per square foot (psf) of land area.

Yoli Technologies clin-ched the other two plots for $476,336 or $2.95 psf and $398,000 or $2.99 psf. The three sites were also sold with 20-year leases.

Agritainment sites can be used for a combination of agricultural and recre-ation/entertainment activities.