Industrial Site At Ubi Ave 4 Now Available

Source : The Business Times, June 26, 2008

THE Urban Redevelopment Authority has released an industrial site at Ubi Avenue 4 through the reserve list of the Government Land Sales Programme. The move follows the award of a nearby industrial site at Ubi Avenue 4/Ubi Road 2 in April for $88.74 per sq ft per plot ratio (psf ppr) or $23.9 million. Both sites have 60-year leases.

Chesterton International director (industrial) Albert Yeo believes the new site could see bids of about $100 psf ppr if or when it is triggered and put up for tender. And Mr Yeo reckons interest could be high. Already, the Vertex project in the same area has been selling well. Upper-floor units in the 552-unit eight-storey flatted and ramp-up factory development are going for $320-$360 psf, and ground-floor units for $460-$600 psf.

Explaining the demand, Mr Yeo said: 'Many businesses are now buying space instead of renting - to avoid rental hikes.' Also, businesses that were previously located in CBD-fringe office space have migrated to industrial estates, he said. 'We see a lot of SMEs moving in.'

The build-quality of new flatted factories has improved vastly, he added. 'They are attracting businesses in electronics, media and distribution.' Colliers International director (industrial) Tan Boon Leong also believes the general outlook for the industrial sector is good.

Colliers has been appointed by 3M Singapore to sell a freehold industrial site at 9 Tagore Lane by expression of interest. Mr Tan expects interest from developers and investors because the 156,188 sq ft site presents a 'rare' opportunity. It is now occupied by a three-storey warehouse and office building with a total gross floor area of 126,033 sq ft, but can be redeveloped into a four-storey light industrial building with a gross floor area of up to 310,000 sq ft.

The capital appreciation for similar freehold developments is 5-10 per cent so far this year, according to Mr Tan. While there is no indicative price for 9 Tagore Lane, strata-titled freehold units in the area have recently changed hands at $280-$300 psf, he said.

Separately, URA said yesterday it has awarded the tender for the residential site at Woodleigh Close to Frasers Centrepoint, which submitted the highest bid of $270 psf ppr or $87.68 million.