Wednesday 27 February 2013

Punggol F&B site gets top bid of $11.4m

A plot of land at Punggol Point zoned for food and beverage (F&B) use has drawn a highest bid of $11.4 million, pipping eight other offers.

The offer, which works out to $3,789.6 per square metre of gross floor area (GFA), was submitted by Fragrance Group.

The next highest bidder was KT & T Resources at $8.6 million, or $2,865.1 per square metre of GFA.


The lowest of the nine bids of $1.7 million, or $570 per square metre of GFA, was submitted by Wong Wai Leong.

The 11,606.6 sq m site was launched for sale for a 15-year lease on Dec 4. The maximum permissible GFA, inclusive of outdoor refreshment area, is 3,000 sq m.

The site is expected to complement existing and upcoming attractions in the Punggol area, such as the horse-riding centre and the development of Coney Island as a regional park. Punggol Point is slated to take on the charm of a rustic coast given its location next to the Strait of Johor.

Market analysts noted that a site with such specific F&B zoning was relatively uncommon.

When the tender was announced, analysts had found it a challenge to gauge the price range for the bids, with one reckoning that it might fetch a top bid in the range of $35 million to $40 million.

The most recent of such sites was a public tender in 2002 for a piece of land with 12 years lease under the Tampines MRT viaduct. It was sold to Tan Hee Nam for $10.3 million and received a total of 23 offers.

Prior to that, in 1995, a land parcel with 30 years lease was sold for $17.1 million and saw the development of China Square.

Source: Business Times –27 February 2013

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