Whopping 14 bids for Aljunied industrial site

Whopping 14 bids for Aljunied industrial site

A 0.63 hectare (ha) industrial site at the junction of Sims Drive and Aljunied Road drew a whopping 14 bids, and a top bid of $43.4 million, or $255.44 per square foot per plot ratio (psf ppr) by Fragrance Biz Space, in spite of the new conditions on strata sub-division for industrial parcels, which came into effect in January.

Assuming Fragrance is awarded the tender, this will be the group's maiden industrial project.

Given that this site is located next to Aljunied MRT, developers will not be allowed to strata sub-divide the development in the first 10 years after the project is completed. For strata sub-divisions after the period, developers must adopt a minimum strata unit size of 1,615 sq ft GFA.

Rental in the area is estimated to be in the range of $280 psf to $350 psf.

The breakeven price for the project should be in the range of $400 psf to $430 psf, said Mr Tan.

The 0.63 ha site has a maximum permissible gross plot ratio of 2.5, and a lease period of 60 years. It is zoned Business 1.

Source: Business Times – 11 April 2012