Balestier factory sold en bloc

A PRIVATE developer is paying $46.2 million to buy a freehold industrial building in Balestier and possibly launch a residential project on the site.

This is the first collective sale of the year, says Credo Real Estate which handled the deal.

The three-storey terrace factory building at 6 Jalan Ampas sits on a site spanning 27,838 sq ft, with a gross plot ratio of 2.5. The Urban Redevelopment Authority had said in 2008 that it would consider re-zoning the site for residential use, with a gross plot ratio of 2.8 upon redevelopment.

The developer will be paying $27.5 million for the plot and another $18.7 million as the estimated development charge for re-zoning the site. Altogether, the price works out to around $593 per square foot (psf) per plot ratio.

Credo did not identify the developer, though it notes that it is an ‘experienced player in the industrial property sector’ making its first foray into residential development in Singapore.

There is potential for the buyer to develop a high-rise residential project with a gross floor area of around 77,948 sq ft, Credo says.

The site is near Shaw Plaza and Balestier Plaza, and is surrounded by other residential and industrial properties.

Nearby, units at the recently launched Prestige Heights have changed hands at $1,287-$1,417 psf since December last year, based on caveats lodged.

The industrial building was put up for sale in November last year, but offers which came in by the time the tender closed on Dec 10 did not meet the reserve price.

‘It attracted over five offers and subsequently another five more expressions of interest from developers who found the offering attractive,’ says Credo deputy managing director Tan Hong Boon. The winning developer is one of the latter five which showed interest.

The festive season in December could have affected initial response to the tender, he reckons.