Category Archives: Industrial

Industrial property prices, rents continue to fall: JTC

The prices and rentals of industrial space in Singapore have continued to soften, following an increase in supply of industrial land and space by the Government, according to JTC in its quarterly market report released on Thursday (Jul 23).

Overall, the prices of industrial properties fell 0.9 per cent year-on-year in the second quarter of 2015. The prices of multiple-user factory space saw a 2.3 per cent decrease in the same period, while single-user factory space prices remained flat. On a quarter-on-quarter basis, overall prices fell 0.7 per cent.

Meanwhile, overall rentals for industrial properties fell 2.7 per cent year-on-year in the second quarter, with rentals for multiple-user factory space seeing the biggest decrease of 3.1 per cent. However, rentals for single-user factory space bucked the trend, increasing 1.2 per cent year-on-year. On a quarter-on-quarter basis, overall rentals fell 0.7 per cent.

The occupancy rate for industrial space increased in the second quarter. Overall occupancy rates went up 0.3 percentage point year-on-year to 91 per cent. Warehouse occupancy rates saw the biggest increase of 3.1 percentage points year-on-year to 91.6 per cent. This was due to occupants moving into new warehouse developments completed in earlier periods, said JTC. However, despite the increase, the occupancy rate of the overall industrial space market still fell short of the peak of 93.5 per cent in 2012.

With the softening of prices and rentals, transaction volume also decreased by around 20 per cent year-on-year in the second quarter, said JTC.

For the second half of the year, about 1.6 million sqm of industrial space, including 290,000 sqm of multiple-user factory space, will be added, said JTC. An additional 2.8 million sqm of industrial space is expected to be added in 2016, higher than the average annual supply and demand of about 1.5 million sqm and 1.1 million sqm in the past three years. This is likely to exert further downward pressures on occupancy rates, said JTC.

“The Government will continue to monitor the industrial property market closely to ensure that the diverse needs of industrialists are met,” said JTC. “Appropriate measures will also be introduced where necessary to promote a stable and sustainable industrial property market.”

Two warehouse buildings in Tampines up for sale, asking $70m

TWO adjacent multi-storey warehouse buildings in Tampines have been put up for sale through an expression of interest exercise.

21 Tampines Street 92 is a six-storey warehouse, and 23 Tampines Street 92, an eight-storey warehouse with over 200 covered parking lots.

The properties can be bought jointly or separately, said exclusive marketing agent Cushman & Wakefield in a statement.

The properties are within the high-rise residential enclave of Tampines and Simei, and enjoy visibility from the Pan-Island Expressway (PIE).

They are near the upcoming Tampines West MRT Station on Downtown Line 3, which is expected to be completed in 2017 and will connect the residential estates of Tampines to the central business district and Marina Bay Financial Centre.

Both are zoned “Business 2” (meaning for heavy industrial use), with a plot ratio of 1.4. They have a balance lease tenure of 22 years left.

21 Tampines Street 92 sits on a land area of 119,091 square feet with a gross floor area of 164,967 sq ft. It is occupied by the owners as a furniture showroom and warehouse.

Shaun Poh, executive director of capital markets at Cushman & Wakefield, said that it would be ideal for end-users such as e-commerce and logistics companies that want to operate from their own buildings with a good corporate image, given the modern building architecture.

23 Tampines Street 92 has a land area of 95,788 sq ft, and gross floor area of 132,835 sq ft. It is leased to StorHub and Best Denki.

Both buildings are sitting on private land and hence are not subject to rules imposed by JTC or HDB. In contrast, those in the immediate vicinity are mostly on HDB leases.

The combined indicative price is about S$70 million, with the owner open to selling as is, or with a sale-and-leaseback arrangement.

The two developments will be ideal for self-storage business, Mr Poh said. Substantial parts in both buildings are already equipped with self-storage facilities.

In the third quarter, the warehouse sector saw an occupancy level of 92.5 per cent, up 2.1 percentage points year on year. But rentals fell 1.9 per cent from the previous year.

“Most of the new warehouse supply is concentrated in the West region with only 15 per cent in the East region,” Mr Poh said.

“Singapore is increasing in importance as a regional logistics hub and the rapid growth of air freight due to consumers’ growing preference for express delivery will support sustainable demand for warehouses in the East region in the long term.

“In addition, in view of the several data centre facilities already in operation nearby, conversion of the subject properties into data centres could be possible.”

The expression of interest exercise will close on Dec 4 at 3pm.

More than 1588 direct property listings to the owners

Home Sales and Leases are not mere transactions. They are long term relationships. If you are looking for a long term relationship that can help you access to more than 1588 direct listings, whether residential, commercial and industrial properties for sale/lease, call David King @ 94772121 for more details.

Some of the direct listings

Out of the Woods

An integrated project developed by Far East Organisation, WOODS SQUARE, is now out for expression of interest.

The Woodlands Square development will be a mixed use project featuring two 16-storey office towers and a retail component. The office towers will comprise small and large floor plate strata offices for sale and lease. This will make up 90% of the development. There will be retail spaces occupying level one and the basement with direct connectivity to the MRT station and Causeway Point. The architecture will feature extensive greenery and public open spaces designed to encourage interaction. The first strata-titled office space integrated with retail and F&B components.

Why not seize the first-mover advantage now? Call David King @ 94772121.

Brief of Project
Highlights of the Strata Titled Tower
Map of Woods Square
Woods Square Map

B2 space Woodlands BizHub for Rent

Flatted factory for rent in Woodlands. 1399sqft @$2.388K. Call David @ 94772121 for more details.

Woodlands Bizhub is a 60-year Leasehold commercial property located at 190, Woodlands Industrial Park E5, 757516 in District 27. Woodlands Bizhub is primarily used for Factory/Workshop (B2) space rent and sale. Woodlands Bizhub is close to Admiralty MRT Station (NS10). It is near to several bus stops located after Woodlands Industrial Park E, Admiralty Road West – 47049, after Children’s Society – 47041 and View Road Hospital (Former) – 47039.

Amenities near Woodlands Bizhub

Woodlands Bizhub is near to several eateries located at nearby buildings such as Gold 186 Foodcourt at Woodlands Industrial Park E4 and Canteen at Singapore Safety Driving Centre.

Woodlands Bizhub is within reasonable distance to Shop N Save Supermarket. It is also close to Woodlands North Plaza for an array of amenities such as grocery and retail shopping, banks and more.

Woodlands Bizhub is accessible via Admiralty Road West, Woodlands Avenue and Woodlands Industrial Park E5.

Industrial B2 space for rent in Tuas At $4K.

Tuas is the up and coming industrial hub in town.

Industrial B2 unit for rent. 2744sqft @ $4k. Call David King at 94772121 for more details

Westlink One is a 60-year Leasehold commercial property located at 1, Tuas View Place, 637433 in District 22. Westlink One is primarily used for Factory/Workshop (B2) rental and sale. Westlink One is near to several bus stops located at Tuas South Avenue 5.

Amenities near Westlink One

Westlink One is near to several eateries located at nearby buildings such as 2 Tuas South Avenue 2. Westlink One is accessible via Tuas South Avenue 5, Tuas South Avenue 8 and Tuas View Place.

Industrial space at Ubi at $630k for 1152sqft

Ubi Centre B1 space 1152 sqft.  Other sizes avail as well. $630k nego. Also for rent at $2.xK

Call David @ 94772121 for more details.

Ubi Centre is a commercial property located at 57, Ubi Avenue 1 District 14. Ubi Centre is primarily used for Light Industrial (B1) use. Ubi Centre is close to Eunos MRT (EW7), MacPherson MRT (CC10) and Paya Lebar MRT (CC9/EW8). It is close to several bus stops located at Ubi Avenue 1, Paya Ubi Industrial Park – 71201, Ubi Avenue 1, Opp Paya Ubi Industrial Park – 71209, Ubi Avenue 1, Opp BLK 343 – 71119 and Ubi Avenue 1, BLK 343 – 71111.

Amenities near Ubi Centre

Ubi Centre is near to several eateries at nearby buildings such as Kopitiam at 10 Ubi Crescent, BLK 325 Coffeeshop and CK (Ubi) Canteen @ Excalibur Centre.

Ubi Centre is within reasonable distance to Shop N Save Supermarkets. It is also close to Joo Chiat Complex, Tanjong Katong Complex and City Plaza for an array of amenities such as grocery and retail shopping, banks and more.

Ubi Centre is accessible via Ubi Avenue 1.

UBI business space for rent

Looking for a high ceiling, prime location and good image space, look no more. Asking $2psf.

Call King at 94772121 for more details.

UB Point is a brand new, 6-storey, multi-tenanted development offering more than 147,000 sq ft of B1 industrial space with common facilities such as passenger and cargo lifts, loading/unloading bays with dock-levellers and sheltered car park lots. UB Point is located within an established light industrial area and is easily accessible via PIE and is a ten-minute walk to the MacPherson MRT.

Space for Lease
Unit sizes: 1,200 – 29,500 sq ft

Alibaba unit to have overseas HQ in Singapore

The cloud-computing arm of Chinese e-commerce giant Alibaba will base its overseas headquarters in Singapore as it gears up to expand globally. Aliyun, as the unit is known, will serve businesses investing in Southeast Asia, with a focus on Chinese operations.

Aliyun vice-president Ethan Yu said in a statement yesterday: “The city state is a natural springboard into the Asia-Pacific region, not only for us, but for our target audience.

“We are seeing healthy demand for cloud-related data management services in Singapore because of the ease of doing business, comprehensive transport and telecommunications connections and robust intellectual property regime.”

Last year, Alibaba opened a Singapore office at One Raffles Place where a small number of staff from the financial, logistics and Aliyun teams are now based, said an Alibaba spokesperson yesterday.

Alibaba plans to recruit more engineers and business development staff here, although it has not set a target number “since we believe we need to find the right people to meet the needs of those local customers”, said the spokesman.

“Aliyun welcomes gifted talents with sophisticated knowledge of the Asian markets,” she added.

Aliyun will also launch a cloud data centre here early next month, after announcing plans to set up here last month. It will be its seventh centre with others in mainland China, Hong Kong and Silicon Valley. It also plans to open centres in Dubai, Germany and Japan.

Mr Yu told CNBC that the new facility here could “become the biggest we have outside China” and give the cloud division an edge in the face of stiff competition from US cloud giants such as Amazon Web Services and Microsoft.

Alibaba is cooperating with local service providers to establish the data centre, but its location and the number of servers it will house cannot be disclosed as such information is highly sensitive, the Alibaba spokesman said.

Singtel is one of Aliyun’s local partners having entered into a cloud-computing alliance in June. Besides collaborating on hybrid cloud-computing services, the tie-up lets Aliyun use Singtel’s servers instead of building its own.

CDL’s next big monetisation moment: industrial properties

Something’s brewing at City Developments Ltd (CDL), and it may not be what some had been expecting since the developer’s S$1.5 billion monetisation of its Quayside Collection assets in December.

While market observers have tipped the South Beach mixed development project as the next big monetisation target for CDL, what’s more likely to emerge is the group’s exit from the industrial market.

Here’s why. Industrial properties are not core to the property and hotel group; CDL has not developed an industrial project here in a long time and Singapore’s industrial property landscape has also changed a lot in the past decade or so. Rentals from the group’s industrial properties may also be muted in light of the massive oversupply of industrial space.

For the past few years, the group has been disposing its industrial properties in a piecemeal fashion. These include a nearly 500,000 square foot freehold tract of industrial land along Jalan Lam Huat off Kranji Road, 100F and 100G Pasir Panjang Road and strata units in Citimac Industrial Complex and Elite Industrial Buildings I and II.

In late 2010, CDL’s 42.8 per cent unit Branbury Investments sold a 45-year lease for the 999-year leasehold New Tech Park in Lorong Chuan to Sabana Reit. The group has reversionary interest of the property at the expiry of the 45-year lease.

Based on CDL’s latest annual report, its remaining industrial property portfolio includes Citilink Warehouse Complex along Pasir Panjang Road, where it owns 62 strata units adding up to 103,300 sq ft. The group also owns about 133,860 sq ft at Cideco Industrial Complex, an eight-storey industrial building in Genting Lane, and some 127,400 sq ft at the 11-storey City Industrial Building at Tannery Lane.

In Tagore Lane, CDL owns the four-storey Tagore 23 Warehouse, with nearly 130,000 sq ft. All four properties are freehold.

BT understands that the property giant could be in the advanced stages of hammering out a deal to sell its industrial properties to the tune of S$300-350 million.

Originally, CDL was said to be looking at selling a leasehold interest in the industrial properties – which would translate to a lower price and hence higher yield, thus appealing to a potential buyer such as a real estate investment trust (Reit).

However, the potential buyer that is said to have performed due diligence and with whom CDL is negotiating a sale, may well not be a Reit; and the freehold interest in the properties may be for sale.

By selling its industrial buildings, CDL would stand to book a nice profit – since their book values would be low as CDL does not revalue its investment properties; instead it states them at cost less accumulated depreciation and impairment losses. Moreover, the group will be in a position to allocate the cashflow released from the divestment to a new growth area.

Back to the South Beach mixed development project and why it’s not likely to be monetised just yet.

While South Beach Tower, the 34-storey office component, received Temporary Occupation Permit in February, the opening of the hotel has been delayed. The project also includes a residential component.

One issue, however, is that CDL has a partner in the project, Malaysia’s IOI Group, which may have a first right of refusal on CDL’s stake in the development.

It is also noteworthy that CDL is still a significant office landord; it owns the likes of Republic Plaza in the prime Raffles Place financial district, City House along Robinson Road, Fuji Xerox Towers in Anson Road, and not forgetting the spanking new South Beach Tower.

One may recall that a decade ago, the group did try to sell a chunk of its commercial portfolio. These included four entire buildings of mostly office space – Fuji Xerox Towers, Plaza By The Park (now known as Manulife Centre) along Bras Basah Road, City House and Central Mall Office Tower in Magazine Road – along with strata units in other buildings including The Arcade at Collyer Quay and Katong Shopping Centre.

However, the deal fell through due to regulatory hurdles faced by the prospective buyer, Suntec Reit, as its acquisition was to have involved an element of deferred payment entailing holding back the issue of units in Suntec Reit for part of the payment for the purchase of the assets. A deferred payment would have reduced dilution and hence propped up the distribution per unit (DPU) post-acquisition but posed the danger of a potential slide in DPU later on when the new units would have to be issued to meet the deferred payment.

Most market watchers reckon that CDL would probably still be open to selling some of its older office properties – at the right price.

CDL is also said to have received bulk purchase offers for some of its new condo projects in prime districts. However, potential buyers would probably be looking for a bargain and CDL may be unwilling to take a big haircut. After all, it will not be easy to get replacement land as en bloc sale owners – the chief source of freehold residential development sites in the prime districts – are not prepared to accept developers’ offers based on current market parameters for the luxury housing market.

For now, it would be wise for CDL to strike while the iron is hot – assuming that it has a buyer at the negotiating table for its industrial properties – in what is generally a slow Singapore property market.