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| Boon Building: The
999-year leasehold property was last transacted for about $9.5 million
in August 2007. It's being sold with vacant possession through a tender
exercise that closes on Dec 17 |
The Kaki Bukit site is 323,133 sq ft
and has a 2.5 plot ratio, which means the maximum gross floor area
works out to a whopping 807,833 sq ft. It is zoned Business 2 -
suitable for a range of uses such as clean/light industry, general
industry and warehousing - and offered with a 60-year lease.
Under the reserve list system, the site will be launched for tender by
the state only if a developer makes an application with a minimum bid
price acceptable to the government.
Colliers International
director (industrial) Tan Boon Leong reckons top bids for the plot -
assuming a tender takes place now - could come in at $70-80 per sq ft
per plot ratio (psf ppr). This works out to a land cost of about $56.5
million to $64.6 million.
According to Mr Tan, the plot is in a
lesser location than an earlier plot in Kaki Bukit Road 2 that was sold
in August this year after attracting a total 18 bids. 'The latest plot
is farther away from the main mature industrial estate in the Kaki
Bukit/Eunos area,' he said.
The earlier plot was awarded to KNG
Development for $12.1 million or about $105 psf per plot ratio. It is
about 1.07 hectares with a 1.0 plot ratio and is also zoned for
Business 2 use, but came with a 30-year lease.
The latest plot,
in Kaki Bukit Ave 4, is likely to appeal to developers, who may then
build landed terrace factories to sell to end-user industrialists, as
well as flatted factories, Mr Tan suggests.
'Perhaps some of the
unsuccessful bidders at the earlier tender may bid for the latest
plot,' he said. 'However, as the latest site is much larger in terms of
land area as well as gross floor area, developing it will entail a
bigger investment. Hence, it will likely fetch a lower psf ppr unit
land price.'
In October last year, Sim Lian clinched a 1.15-ha,
60-year leasehold site in Ubi Ave 4 for Business 1 use for $26.3
million or $85.05 psf ppr. It has a 2.5 plot ratio.
Boon
Building, a 999-year leasehold property, is being sold by Raffles Point
Holdings, controlled by property investor Kishore Buxani and his
family. The indicative guide price is $12-13 million, which works out
to $1,165 to $1,262 psf based on the estimated net lettable area of
10,299 sq ft.
According to caveats records, the property was
last transacted for about $9.5 million in August 2007. It will be sold
with vacant possession and is being marketed by DTZ through a tender
exercise that closes on Dec 17.
DTZ senior director for
investment advisory services Shaun Poh said: 'The property's appeal
lies in the building's excellent location and investment quantum. The
availability of naming rights also offers the opportunity to carve out
a flagship building with its own corporate identity.'
Mr Buxani and his partners also own 108 Robinson Road and six floors of Samsung Hub.