The Urban Redevelopment Authority (URA) announced yesterday the solicitation of bids for a 30-year leasehold industrial site in Kaki Bukit Road 2, near the Ruby Warehouse Complex, Kampong Ubi and Eunos Techpark.
The low cost of capital involved and the land’s strategic location in industrialised zone are expected to attract a fair number of investors, said Tan Boon Leong, director (industrial) at Colliers International.
Kaki Bukit CarMart currently occupied the 1.07-hectare property, but its Temporary Occupation Licence is set to expire at the end of this month.
Tan is expecting bids from car dealers, property developers and businesses involved in hardware, maritime, logistics and oil and gas industries. The government will only approve the tender process once a minimum bid is met, which is estimated at $40 per square foot per plot ratio (psf ppr), though bids could be as high as $70 psf ppr once the actual tender starts.
The highest expected bid will amount to $8 million in investment costs, which is within the reach of many investors. The property has a 1.0 plot ratio, a measure of maximum potential gross floor area (GFA) relative to land area.
Meanwhile, the Singapore Land Authority announced that Chai Kiui, the chairman of Kim Soon Lee group, won the auction for a two-hectare property at 20 Eunos Road 4. The company currently operates the existing heavy vehicle facilities in the site.