URA to release industrial site at Kaki Bukit Road 2

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(SINGAPORE) The Urban Redevelopment Authority (URA) will launch a public
tender for an industrial site at Kaki Bukit Road 2 in two weeks' time, it said
yesterday. The 1.07 ha site was made available for sale through the
government's reserve list system in May 2009.

Under the reserve list
system, the government will put up a site for public tender only if it receives
an application from a developer who commits to bid for the site at or above the
minimum price which is acceptable to the government.

URA has received an
application from a developer who has committed to bid at a price of not less
than $5 million for the land parcel at Kaki Bukit Road 2, it said. The price
works out to about $43 per square foot (psf).

The site comes with a
lease period of 30 years. It is zoned for a Business 2 development, which
means that it can be developed for a range of clean, light and general
industrial uses.

Industrial rents will be under pressure given the
broader economic outlook and weak demand for Singapore exports, said Nomura
Research in a June 29 report on Singapore's property market.

'While the
market appears to be pricing in a new economic optimism, the real estate sector
is still faced with the dual reality of rental declines and higher yields as
growth expectations are pared,' said the report. Rents could decline by 31.7
per cent over the property cycle, Nomura believes.

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