Ubi plot gets $85 ppr bid

Source : Business Times - 1 Oct 2008

THE Urban Redevelopment Authority (URA) has received a top bid of $26.3 million from Sim Lian Land for an industrial site at Ubi Avenue 4.

This works out to about $85 per sq ft per plot ratio (psf ppr). It is 13.6 per cent higher than the only other bid of $75 psf ppr submitted by Orion-Four Development, and 20 per cent higher than a committed bid received by URA in August.

Li Hiaw Ho, executive director at CBRE Research, said Sim Lian’s bid is only marginally lower than the price paid for a 60-year leasehold site at Ubi Avenue 4/Ubi Road 2. Mr Li said that Sim Lian-linked 3 Link Development paid $89 psf ppr for that site in April 2008.

Sim Lian said that a seven or eight-storey flatted factory will be built on the site at Ubi Avenue 4/Ubi Road 2. ‘It is likely that Sim Lian will develop a similar project if awarded the subject site,’ Mr Li said. ‘Breakeven cost for a similar project at the subject site is expected to be about $300 psf.’