Bids for Yishun industrial site beat expectations

An industrial site at Yishun Avenue 9 drew a total of five bids with a top offer of $31.69 million or $100.48 per square foot per plot ratio (psf ppr) from Soilbuild Group Holdings, slightly above market expectations.

Property consultants had initially estimated offers of between $50 and $70 psf ppr owing to the shorter, 30-year lease period and a relatively smaller size (11,719.9 sq m or 126,152 sq ft), in comparison to adjacent plots.

OKH Holdings, was the second highest bidder, with an offer of $28.7 million or $91 psf ppr.

The lowest offer for the site, which has a maximum permissible gross plot ratio of 2.5, was from Vantage Properties at $22.8 million or $72.28 psf ppr.

Furthermore, given the recent offer of $95.13 psf ppr by Soon Hock Tuas Development for another plot of land at Yishun Avenue 9 last month, property consultants are not all that surprised at the higher bids.

Soilbuild had made an offer for that site as well, at $71.06 psf ppr but ranked third in its offer.

Last month, Soilbuild was awarded an industrial site at Bukit Batok Street 23 after it submitted the highest bid of $32.33 million or $80.03 psf ppr for the 161,578 sq ft site.

Source: Business Times – 27 September 2012