JTC opened an industrial property at Lok Yang Way earlier this year as part of its Industrial Government Land Sales (IGLS) program. The location, which is around 1.86 hectares in size, was put on the Reserve List for the first half of 2024. It was a great chance for developers with industrial goals since it had a Business 2 zoning, a gross plot ratio of 2.5, and a 30-year lease.
As a Reserve List site, it could only be sold if the government accepted an offer that reached a certain price. The tender ended on June 28, 2024, at 11 AM, and interest was then officially looked at.
In November 2024, JTC announced that the Soilbuild Group Holdings Ltd. had won the contract. Soilbuild won the property with a bid of roughly S$70.08 million, beating out two other proposals.
Let’s look at this more closely.
What the Award Means for Soilbuild
Getting the Lok Yang Way site is a smart move for Soilbuild to increase its industrial property portfolio. The property is 18,605.5 square meters and has a 30-year lease. It is also B2 zoned, which means it may be used for huge footprints and operating facilities.
Soilbuild may build up to two and a half times the land area in total floor space since the gross plot ratio is 2.5. That offers the developer space to build facilities that can handle heavy-duty operations and logistics.
This project also shows that Soilbuild can win government land bids. Winning against other bids shows that it is ready and able to handle large-scale industrial growth.
Putting It in Context
The Lok Yang Way award comes after the site’s first introduction as part of IGLS 1H2024, when it was the third of four Reserve List sites. That was the end of Soilbuild’s successful journey through a very competitive and rigorous procedure.
In addition, this location is one of numerous industrial plots that Soilbuild has won via JTC bids. The firm has made a number of important purchases in Singapore’s industrial sector, which has helped build a stable stream of revenue.
What’s Next on Lok Yang Way IGLS Site?
Soilbuild will probably move on to the planning and development phase now that they have the tender. Because of its size and zoning, the property might be used for many different types of businesses, from logistics and storage to high-tech industries. The 30-year lease offers you plenty of time to work on long-term initiatives.
The transformation timetable is set at around 60 months after the award, or about five years. This allows enough time to prepare for design, approvals, construction, and handover.
This grant shows that JTC is still providing land for industrial use as part of the IGLS framework. The Lok Yang Way parcel was subsequently included to the confirmed list for the second half of 2024, which shows how important it is to Singapore’s industrial development.
Soilbuild’s action shows that there will be more supply and developer interest in the industrial property market. There is still a lot of demand for industrial property, particularly from developers who are willing to put money into long-term projects in regions that are well-zoned.