Soilbuild is top bidder for Woodlands site

July 23, 2008
Soilbuild is top bidder for Woodlands site
It offers $13.61m for industrial site; may build landed and/or
flatted factories
By KALPANA RASHIWALA

SOILBUILD Group Holdings yesterday emerged as top bidder in a state
tender for a 60-year leasehold industrial site at Woodlands, offering
$13.61 million or $30.10 per square foot (psf) of potential gross
floor area. This was almost 60 per cent above the next highest bid of
$18.91 psf per plot ratio (psf ppr) from Zap Piling.

BT understands that Soilbuild may be looking at various permutations,
including developing two or three-storey landed factories, a multi-
storey flatted-factory/ramp-up factory development or a combination,
depending on what best suits the market's needs.

Soilbuild has developed landed factories, each with its own backyard,
in the Kranji and Pioneer Road areas. 'These are popular, especially
among SMEs,' an industry player said.

Colliers International managing director (Singapore and North Asia)
Dennis Yeo said: 'With construction costs at today's high levels, it
may be a better option to build landed factories, even though this
means Soilbuild will not be able to develop the maximum gross floor
area allowed for the site. Landed factories are in greater demand.'

He estimated that Soilbuild should be able to sell a new 60-year
leasehold development - landed factories or high-rise - for about
$250 psf of saleable area. BT understands that Soilbuild's breakeven
cost could be about $150-170 psf of saleable area for landed
factories and $180-190 psf for a high-rise project.

Yesterday's tender for the plot at Woodlands Industrial Park E5,
conducted by Urban Redevelopment Authority, drew four bids. SP
Development, a unit of Singapore Piling & Civil Engineering, bid
$17.92 psf ppr. Boon Keng Development, a property developer and
construction firm controlled by Lim Kim Hong and Lim Huixing, offered
$13.69 psf ppr for the 180,835 sq ft plot.

With a 2.5 plot ratio, the site can be developed into a project with
a maximum gross floor area of 452,086 sq ft.

The plot is zoned Business 2, which means that it can be developed
for a wide range of uses such as clean/light industry, general
industry and warehousing.