Soilbuild will develop and market for CSC a 322,000 sq ft site in Tuas
PROPERTY developer Soilbuild Group and engineering firm CSC Holdings are joining hands for a $51.7 million business space project in Tuas.
Soilbuild will develop and market for CSC a 322,000 sq ft site in Tuas South Avenue 2. The site comprises a $2.8 million plot that CSC bought from Tat Hong Holdings yesterday and another parcel that CSC acquired in April 2000.
The 60-year leasehold land has an unexpired lease of 51 years. It can be developed into a mix of 70 single, double and triple-storey terrace factory units, ranging from 3,000 to 6,000 sq ft each.
Development cost could be around $51.7 million. Soilbuild will receive some factory units as payment for design and construction, but the number has not been revealed.
The factories are expected to be ready for launch early next year, and construction could end by the first half of 2011.
According to Colliers International director (industrial) Tan Boon Leong, industrial property prices in the area are fairly stable and in the range of $150-$200 per sq ft.
CSC and Soilbuild spoke yesterday of benefits of their tie-up.
CSC group chief executive See Yen Tarn said it will allow CSC to focus on its core engineering activities. ‘Real estate development is not really our core business,’ he said.
Soilbuild executive director Low Soon Sim said he expects the development to attract small and medium-size enterprises (SMEs) in the equipment maintenance industry. SMEs servicing shipyards and biomedical firms in the area could also require space there.
According to him, demand from SMEs for industrial space has been steady despite the economic slowdown, partly because of help received through the Jobs Credit scheme.
CSC’s stock lost one cent to close at 16 cents yesterday, while Soilbuild’s stock closed two cents down at 89 cents.
In a Dec 2 note, OCBC Investment Research maintained a ‘buy’ call on Soilbuild, assessing its fair value at $1.33.
Source : Business Times – 8 Dec 2009
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