A freehold industrial re-development site located at 47/A-65/A (odd numbers) Kim Chuan Drive has been put up for sale by tender. The tender will close on 21 February 2014, at 3.00 pm.
Jointly marketed by Colliers International and Jones Lang LaSalle, the site has an area of approximately 34,729 sq ft. It is currently occupied by a 3-storey development comprising 10 shop units on the ground floor and 10 residential units spread across the second and third floor.
Under the 2008 Master Plan, the site is zoned for “Business 2” use with a plot ratio of 2.5. The indicative pricing for the site is approximately S$44-46 million, which translates to S$506-529 per sq ft per plot ratio.
Ms Grace Ng (黄黎明), Deputy Managing Director of Colliers International, says, “The subject site is surrounded by a mixture of detached/terrace factories and workshops; most of which are on a 30-year leasehold tenure. Comparatively, the subject site has a freehold tenure, which is, more often than not, appealing to investors; and in this case, boutique developers who are looking for a reasonably-sized plot of land.
The site can be re-developed into a factory or warehouse comprising approximately 49 strata units, each with an average size of some 1,500 sq ft. The completed units are expected to achieve an average selling price of about S$1,000 per sq ft or higher.”
Ms Ng continues, “As a point of reference, units at the nearby Solstice Business Centre, which is zoned for ‘Business 1’ use, were transacted at approximately S$890 per sq ft in October last year. Factories with ‘Business 2’ zoning generally command higher prices than factories with ‘Business 1’ zoning. We see great potential in the subject site – given that it is located within the Paya Lebar growth area; and more so, in the mid- to long-term when the Paya Lebar Air Base relocates to Changi.”
Ms Mok Sze Sze (莫思思), Head of Auction and Sales at Jones Lang LaSalle, says, “Given the freehold subject site’s ‘Business 2’ zoning, the indicative price of $44-46 million offers an attractive proposition. We expect strong interest in the subject site, given the recent demand for sites in Tai Seng and Upper Paya Lebar Road.
Last July, Henley Industrial Building, a freehold site zoned ‘Business 1’ with a plot ratio of 2.5, was sold for S$37 million (S$545 per sq ft per plot ratio), while Guang Ming Industrial Building, another freehold site with a plot ratio of 3.5 and zoned ‘Business 1 – White’, transacted for S$45.8 million, excluding an estimated S$12.2 million paid for development charge ($837 per square foot per plot ratio including DC) in September last year.”
Ms Mok adds, “With Jurong Town Corporation (JTC) having sold a plot in Tai Seng Street via public tender in November, and no further supply of confirmed or reserved sites in the Industrial Government Land Sales Programme for the first half of 2014, this site offers a rare proposition to buy into a site to leverage the future growth potential in the area.”
Located at the junction of Kim Chuan Drive and Kim Chuan Lane, the subject site is readily connected to other parts of the island via major expressways – including the Central Expressway, Pan-Island Expressway and Kallang-Paya Lebar Expressway. It is also located near both Bartley and Tai Seng MRT stations, and is only a few minutes’ drive from the Central Business District and Changi Airport.