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JTC launches four sites in Tuas South

Healthy demand expected for sites zoned for Business-2 development

Posted on 27-Jun-2013
By: Ong Chor Hao

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JTC launches four sites in Tuas South

[SINGAPORE] JTC Corporation has launched four sites in Tuas South for sale by public tender, in a move aimed at catering to demand from industrialists.

Of the sites released under the Industrial Government Land Sales (IGLS) programme yesterday, three are on Tuas South Street 10 and one on Tuas South Avenue 3.

All are zoned for Business-2 development.

The plots on Tuas South Street 10 each have a tenure of 21 years and 11 months, a gross plot ratio of 1.0 and a completion period of 60 months.

Two of the land parcels, Plots 21 and 23, each have a land area of about 0.3 hectare.

The third parcel, Plot 19, is about 0.45 ha in size.

Analysts expect keen contests for these three sites.

Tan Boon Leong, executive director of industrial services at Colliers International, said demand will be "very healthy" in that location.

Recent industrial tenders in Tuas have drawn strong demand from end-users.

A recent sale of similar-sized plots on Tuas South Street 6 fetched top bids of between $76.21 per square foot per plot ratio (psf ppr) and $85.90 psf ppr, with 7-10 bidders for each site.

Mr Tan said he expects 8-10 bidders for each of the three Tuas South Street 10 sites.

The top offer could come in at $70-80 psf ppr, he said.

Nicholas Mak, head of research and consultancy at SLP International, expects 5-10 bidders each for Plots 21 and 23, with the highest bids at $77-86 psf ppr.

With Plot 19, he expects 6-12 participants, with the top offer at $80-89 psf ppr.

Mr Mak says it is likely to be more popular because of its dual frontage - facing both Tuas South Street 9 and Street 10.

The fourth site put up for tender yesterday - an approximately 4 ha plot on Tuas South Avenue 3 - has a tenure of 30 years, with a gross plot ratio of 1.4 and a completion period of 84 months.

Mr Mak said that, with the land parcel being fairly large, this plot offers developers a variety of development options.

These include a low-rise multi-storey development in which some strata units can have high floor-to-ceiling clearance to cater to the needs of logistics companies, he said.

Mr Mak expects 3-7 bidders to contest the site, with the highest bid at $81-91 psf ppr.

Colliers' Mr Tan is expecting 3-5 bidders, with offers at $65-100 psf ppr.

He noted that in March, a land parcel of similar size and plot ratio on Tuas South Avenue 10 was awarded for about $61 million, or $102.18 psf ppr.

"So I think that one can expect to get about this kind of pricing," he said of the Tuas South Avenue 3 plot.

He does not think there will be many bidders because the relatively large size of the plot will price some parties out.

Assuming a bid of $100 psf ppr, the bidder must set aside close to $60 million for the plot, he said.

"This is only for the land, you need to factor in the construction costs and your holding costs as well.

"I think it will add up to quite a fair bit."

The tenders for the four sites will close at 11am on Aug 7.

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