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Industrial building goes up for tender on Feb 26

 
12 February 18 | The Business Times
 

Singapore

THE freehold Pei Fu Industrial Building in New Industrial Road is set to be launched for collective sale via tender later this month.

The reserve price of S$75 million set by the owners translates to S$481 per square foot per plot ratio (psf ppr) based on a proposed gross floor area (GFA) of 155,864 square feet (sq ft).

This unit land rate does not include any development charge (DC) that may be payable to the state, as the development baseline has yet to be ascertained, said William Gan, founder of William Gan Realty, which is marketing the collective sale of the property.

The above GFA figure is based on the 2.5 plot ratio specified for the Business 1-zoned site under the Urban Redevelopment Authority's Master Plan 2014.

Located near Upper Paya Lebar Road, Pei Fu Industrial Building has a land area of 62,346 sq ft. The existing six-storey flatted factory, which was completed around the early 1980s, was developed by Tay Eu Chee Realty, which continues to own a substantial portion of the 30 strata units in the development.

The units range from 1,690 sq ft to 7,653 sq ft. Based on the reserve price, owners will receive sums of around S$1.11 million to S$6.4 million per unit. To date, owners controllling 83.49 per cent of strata area and 83.57 per cent of share value in the development have given their nod to the collective sale.

With the 80 per cent minimum consent level from owners obtained, the tender for Pei Fu Industrial Building's collective sale is set for launch on Feb 26.

Separarely, Mr Gan is also working to try and secure an 80 per cent consent level from owners of the freehold Euro-Asia Apartments in Serangoon Road - ahead of a Feb 18 deadline.

Under current en-bloc sale legislation, a collective sale agreement will expire if the minimum required consent level is not obtained within a year of the first signature being secured, which in the case of Euro-Asia Apartments was on Feb 19 last year.

As of last Friday, owners controlling 76.95 per cent of share value and 76.69 per cent of strata area had given the nod.

Euro-Asia Apartments' reserve price of S$200 million would translate to S$1,160 psf ppr (with no DC payable) assuming the 56,476 sq ft site is redeveloped to the existing GFA which reflects a 3.053 plot ratio. This exceeds the 2.8 plot ratio stipulated for the residential-zoned site under Master Plan 2014.

The existing development comprises 84 units ranging from about 840 sq ft to 2,443 sq ft; owners stand to receive between S$1.59 million and S$3.58 million per unit.

According to Mr Gan, there were a few previous attempts at an en bloc sale at Euro-Asia Apartments, the most recent in 2015. In that exercise, the minimum consent level from owners was not obtained for the site to be launched for sale.