Property

Property: Govt has put three 99 yr leasehold residential sites, a possible yield of 1500 homes, up for tender. Predictions of developer demand were mixed due to the less attractive locations compared to prev tenders earlier…

One site in Pasir Ris is some distance from the MRT, expected to attract a top bid of $336-430 psf per plot ratio (ppr) after an adjacent plot went for $335 psf. The other sites are next to Sembawang Shopping Centre which is expected to go for $340-410psf ppr and in Sengkang for $320-450 psf ppr.

SimLian: Put in top bid of $128.1m or $170.0 psf ppr for an AMK 60 yr leasehold industrial site. Demand was strong with 13 developers in the running and Sim Lian’s bid was 1.9% above the nxt highest bidder. The site has a 752.2 sqft max gfa and is within walking distance to Yio Chu Kang MRT...

There have been no plans for the site yet but co may dev strata-titled units depending on mkt conditions. Co trades at current P/E of 3.4x vs hist avg of 4.3x