Wednesday, December 9, 2009

URA closes tender for Pioneer Rd North site

Property developer Kng Realty has submitted the highest bid of S$19.4 million for an industrial site at Pioneer Road North.

The Urban Redevelopment Authority (URA) has closed the tender for the site after receiving eight bids in total.

The next highest bid came from Sia Kong Wah & Gimp Investment at S$18 million.

Kng Realty’s bid translates to about S$48 per square foot.

Li Hiaw Ho, executive director at CBRE Research, said Kng Realty’s bid was more than twice the application bid of S$20 per square foot.

It is also higher than the S$37 per square foot that Soilbuild Group paid for a 30-year leasehold industrial site along Pioneer Road in November 2007.

Mr Li said the healthy response to the tender reflects the more optimistic business sentiment.

The site was offered for sale in November on a 30-year lease. It was originally on the Reserve List of the Government Industrial Land Sales Programme.

URA said it would decide on the winning bidder at a later date.

Source : Channel NewsAsia – 9 Dec 2009

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