Low Bid for Woodlands Plot
The industrial plot at Woodlands Avenue 12 garnered conservative bids which fell below consultants’ already-modest expectations at its tender close yesterday.
Wee Hur Development, the property development arm of Wee Hur Holdings, trumped four other bids with its offer of $76.9 million, which works out to $72.85 per sq ft per plot ratio (psf ppr). Consultants had estimated a winning bid of $80 to slightly below $100 psf ppr.
Low than expected Bids for Woodlands Industrial Plot
Most of the consultants had taken reference from the 1.4-hectare Gambas Crescent (Parcel 3) site which Far East Organization clinched for $102.20 psf ppr in December last year.
Expectations had not been high to begin with due to the plot’s sheer size. The site can yield about 1 million sq ft of industrial space and can be potentially developed into 550 to 650 strata units.
Huge Size deters developers from bidding
The scale of this site could have deterred developers from submitting aggressive bids as it would require a fairly long period to sell all the strata units in this project.
Another factor is there is already an ample supply of similarly Business-1 zoned light industrial space in the North region.
The third reason for the caution among developers was the recent slow sales at some industrial projects, for instance at Nordcom I which Far East is developing at Gambas Crescent.
Elsewhere, the tenders for two smaller Tuas plots also closed yesterday.
The first, located at Tuas Avenue 11, received the highest bid of $14.4 million from Soon Hock Realty out of eight bids altogether. This translates to a price of $107.01 psf ppr. The site is 8,922 sq m with a leasehold of 30 years.
The second, located at Tuas South Street 11 (Plot 39), yielded the highest bid of $8.1 million ($75 psf ppr) from Tiong Aik Construction from six bids submitted altogether. This 10,000 sq m site has a shorter tenure of 20 years 10 months.
Both sites are zoned Business-2 for heavy and more pollutive industrial use.