Woodlands Avenue industrial site gets $71.84m top bid

URA received four bids with OKH Development Pte Ltd placing the highest bid for the site.

According to CBRE Research Executive Director Li Hiaw Ho, “The tender for an industrial site in Woodlands Avenue 12 (Parcel 3) closed today. The 60-year leasehold site was launched for tender when an unnamed party committed to bid at least $56.15 million ($111 psf/plot ratio) for it. The site is located near Admiralty MRT station.

URA received four bids with OKH Development Pte Ltd placing the highest bid of $71.84 million ($142 psf/plot ratio). This bid is 6.8% higher than the second highest bid of $67.29 million ($133 psf/plot ratio) submitted by Ho Lee Properties Pte Ltd and 27.9% higher than the application price.

It is almost twice the winning bid of $75 psf/plot ratio placed by Boon Keng Development Pte Ltd in April 2010 for the nearby site at Woodlands Avenue 12 (Parcel 1). Named Woodlands 11, the project has an average asking price of $380 psf for the upper floor units and $680 psf for the ground floor units. The development is said to be about 65% sold.

The top bid of $142 psf/plot ratio is slightly lower than the top bid of $152 psf/plot ratio submitted by OKH Development Pte Ltd in June 2011for Woodlands Avenue 12 (Parcel 2). If awarded Parcel 3, OKH Development can develop it together with Parcel 2 which is located beside the subject site. The combined site can yield a massive development with a maximum GFA of 98,490 sm (1.06 million sf).

Strata-title industrial units in Woodlands sold well during 2011. According to caveats lodged with URA for January to September 2011, 12 units in 60-year leasehold Admiralty Industrial Park (Woodlands Industrial Park E1) sold for an average of $210 psf while four units in 60-year leasehold Northland Industrial Building 1 (Woodlands Industrial Park E1) fetched an average price of $163 psf. These developments transacted at prices lower the asking price of Woodlands 11 because they are older 60-year leasehold buildings with only 44 years of tenure left.”