Kallang Pudding Site Gets One Bid

Source : The Business Times, October 8, 2008

AN Urban Redevelopment Authority (URA) tender for an industrial site on Kallang Pudding Road closed yesterday with only one bid received.

The $10.8 million bid came from Orion-Four Development. Based on the site area of 61,819 square feet and a plot ratio of 2.5, the bid translates to a unit land price $69.88 per sq ft per plot ratio (psf ppr) - the same as a committed bid received by URA in August.

Dominic Peters, director of industrial services at Savills Singapore, said he is surprised that just one bid came, especially as the site seems well located.

He said that if URA awards the site, the unit land price of $69.88 psf ppr will be about 20 per cent lower than the $85 psf ppr paid for an industrial site in Ubi Avenue 4 this month by Sim Lian Land.

In that tender, only two bids were received, with Orion-Four Development being the losing bidder. Mr Peters said this could have reflected cautious market sentiment. On the lack of interest in the Kallang Pudding site, he said: 'There could be some concern that there may be an over-supply of industrial space in that vicinity.'

Prices for industrial sites appear to be falling.

In March, Sim Lian Development's unit 3 Link Development emerged the highest bidder for a 60-year leasehold industrial site at Ubi Avenue 4/Ubi Road 2, offering $23.9 million or $88.74 psf ppr.

In February, another Sim Lian unit, Trio Link Development, paid $142 psf ppr for an industrial site in Playfair Road in Ubi/Paya Lebar/Eunos area.