Wednesday, July 23, 2008

Soilbuild Is Top Bidder For Woodlands Site

Source : The Business Times, July 23, 2008

It offers $13.61m for industrial site; may build landed and/or flatted factories

SOILBUILD Group Holdings yesterday emerged as top bidder in a state tender for a 60-year leasehold industrial site at Woodlands, offering $13.61 million or $30.10 per square foot (psf) of potential gross floor area. This was almost 60 per cent above the next highest bid of $18.91 psf per plot ratio (psf ppr) from Zap Piling.

BT understands that Soilbuild may be looking at various permutations, including developing two or three-storey landed factories, a multi-storey flatted-factory/ramp-up factory development or a combination, depending on what best suits the market's needs.

Soilbuild has developed landed factories, each with its own backyard, in the Kranji and Pioneer Road areas. 'These are popular, especially among SMEs,' an industry player said.

Colliers International managing director (Singapore and North Asia) Dennis Yeo said: 'With construction costs at today's high levels, it may be a better option to build landed factories, even though this means Soilbuild will not be able to develop the maximum gross floor area allowed for the site. Landed factories are in greater demand.'

He estimated that Soilbuild should be able to sell a new 60-year leasehold development - landed factories or high-rise - for about $250 psf of saleable area. BT understands that Soilbuild's breakeven cost could be about $150-170 psf of saleable area for landed factories and $180-190 psf for a high-rise project.

Yesterday's tender for the plot at Woodlands Industrial Park E5, conducted by Urban Redevelopment Authority, drew four bids. SP Development, a unit of Singapore Piling & Civil Engineering, bid $17.92 psf ppr. Boon Keng Development, a property developer and construction firm controlled by Lim Kim Hong and Lim Huixing, offered $13.69 psf ppr for the 180,835 sq ft plot.

With a 2.5 plot ratio, the site can be developed into a project with a maximum gross floor area of 452,086 sq ft.

The plot is zoned Business 2, which means that it can be developed for a wide range of uses such as clean/light industry, general industry and warehousing.

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