Soilbuild Group Holdings has offered the highest bid of $64.01 million, or $51.10 psf ppr, for an industrial site at Yishun St 23/Ave 9.
The 60-year leasehold industrial plot received a total of four bids in a public tender that closed yesterday.
Soilbuild’s top bid was 12.3 percent higher than the second highest bid offered by Ho Lee Properties at $57 million or $45.50 psf ppr. This was followed by Winteng Development and KNG Land, which offered $55.38 million and $47.62 million for the site, respectively.
Tan Boon Leong, director (industrial services) at Colliers International said the top bid for the industrial site was a competitive one, stressing that the site was three times larger compared to the two neighbouring plots awarded to Soilbuild and OKH Management in April.
Zoned for Business 2 usage, the industrial plot will be developed into a ramp-up factory with direct vehicular access to all units. The winning developer is required to build a minimum number of fairly large-sized units, which will clip its ability to maximise selling prices for the end units.
“And there’s another limitation as with effect from July 1, 2010, saleable carpark lots have been included in the gross floor area computation for industrial developments – which limits the amount of strata industrial space left for sale in a development,” said Mr. Tan.