The 34,729-sq-ft site can be redeveloped for strata sales at $1,000 psf or higher
A FREEHOLD industrial site at Kim Chuan Drive has been put up for sale by tender at an indicative price of between $44 million and $46 million.
Located at 47/A to 65/A Kim Chuan Drive, the 34,729-sq-ft plot currently has a three-storey development comprising 10 shophouses and 10 homes.
It can be redeveloped into a factory or warehouse of 49 strata units averaging 1,500 sq ft each, said joint marketing agents Colliers International and Jones Lang LaSalle yesterday.
With a plot ratio of 2.5, the plot is zoned for Business-2 development, which allows for heavy industrial use.
The indicative pricing for the tender works out to about $506-$529 per sq ft per plot ratio (psf ppr).
This compares with the $545 psf ppr achieved by a freehold plot off Upper Paya Lebar Road, which was sold for $37 million last July. That plot, on which Henley Industrial Building sits, is zoned for Business-1 use.
Guang Ming Industrial Building, a freehold Business-1 "white" site near Tai Seng MRT Station with a plot ratio of 3.5, transacted last September at $45.8 million, or $837 psf ppr after accounting for development charges.
Referring to the Kim Chuan Drive site, Mok Sze Sze, head of auction and sales at Jones Lang LaSalle, said: "This site offers a rare proposition to buy into a site to leverage the future growth potential in the area."
She said she expected strong interest for the tender, given recent demand for sites in Tai Seng and Upper Paya Lebar.
Boutique developers looking for a reasonably sized plot of land could be particularly interested, said Ms Ng.
A unit of Mapletree Investments bagged a plum 30-year-leasehold industrial site next to Tai Seng MRT Station last November with a bid of $120.1 million, or $270.57 psf ppr. This was 13.5 per cent higher than the next highest bid in the tender, which attracted seven offers.
Other factors working in the favour of the Kim Chuan Drive plot are:
- Its freehold tenure, relative to the 30-year leases for many surrounding sites;
- Its growth potential, being in the Paya Lebar area; and
- The fact that Business-2 plots generally command higher prices than Business-1 sites, said Ms Mok and Ms Ng.
The tender for the Kim Chuan Drive site closes on Feb 21 at 3pm.
Source from Business Times