Soon Lee St industrial site only attracts 3 bids

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The tender for an industrial site at Soon Lee Street got three bids, with KNG Group Pte Ltd offering the highest bid of S$48.11 million (S$114 psf ppr).

The top bid is 42.3 percent higher than the second highest bid of S$33.8 million (S$80 psf ppr) submitted by Soilbuild Group Holdings Ltd, while Elitist Development Pte Ltd was the lowest bidder at S$27 million.

Located near Pioneer MRT station, the 30-year leasehold site has a total area of 19,618.7 sq m and a maximum allowable GPR of 2.0.

“The latest bid by KNG is significantly lower than the price it paid for the earlier site awarded in July. Including the site awarded in December 2009 (Pioneer Centre), KNG has four industrial plots clustered at that junction if it is awarded the subject site,” said Li Hiaw Ho, Executive Director of CBRE Research.

“Together the four sites can yield a massive maximum GFA of 140,113 sq m (1.51 million sq ft), which will give KNG a dominating presence in the area. This will allow the developer to set the price benchmark for new 30-year leasehold projects in that area,” Li added.

Launched for sale on 6 October 2011, the site has a total area of 19,618.7 sq m and a gross plot ratio of 2.0. It is zoned for Business 2 development, so it can be developed for purposes such as light and general industry, warehousing, utilities or telecommunications, as permitted under the Planning Act.

The URA will announce the final tender result at a later date after the bids have been evaluated.

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