OKH Management, a unit of contractor OKH Holdings, has been awarded an industrial site at Yishun Avenue 6 with a top bid of $27.2 million. The 60- year leasehold site covers 14,192.8 sq m (152,771.3 sq ft) and has a maximum GFA of 35,482 sqm, or 381,928 sq ft. OKH’s bid works out to $766.59 psm per gross plot ratio (gpr). Soilbuild Group Holdings put in the second-highest bid of $25.1 million, or $707.96 psm per gpr, from among a field of seven bidders in total. The bidding of this Yishun site, which was in the Reserve List, was launched when an unnamed developer committed to put in at least $11.5 million for the site.
Li Hiaw Ho, executive director of CB Richard Ellis (CBRE) Research, calls this bidding exercise “encouraging”. He attributes the healthy interest to a lack of industrial sites in the area. “No sites in Yishun were awarded under the Government Land Sales programme in the last 10 years,” he points out. Li also believes the robust response can be attributed to positive business sentiment. For example, manufacturing output in February grew 19.1%, reversing a contraction of 12.5% in the same month last year, he says. According to Li, the last transaction for industrial buildings at Yishun was in November 2007, when MacarthurCook Industrial REIT bought 61 Yishun Industrial Park A for $24.6 million, or $157 psf.