Marine and Energy Service Provider selling 5 industrial sites

Wartsila Singapore, which provides services for the marine and energy power plant sectors, was looking to sell five industrial properties in the west. The sites at 11 Pandan Crescent and 14 Benoi Crescent were considered to be sold with leaseback arrangements.

The other three att 43, 45 and 47 Gul Drive were marketed to be outright sales with vacant possession on completion.

The Finland-listed Wartsila is reducing its asset load to focus on core operations, and has also sold assets in Finland. Wartsila Singapore, which was set up here in 1982 and has more than 1,000 employees, plans to lease back the properties at 11 Pandan Crescent and 14 Benoi Crescent and continue to house its staff here.

There was intention to spend about $20 million on 11 Pandan Crescent – which has three factory-cum-workshops, a canteen and a five-storey ancillary office block, and land area of about 35,500 sq m, including 3,110 sq m of waterfront land facing the Pandan River.Wartsila will also spend about $6 million on 14 Benoi Crescent, which has a front-facing three-storey ancillary office block, and a single-storey factory-cum-workshop at the back, with a land area of about 9,860 sq m. The indicative asking prices were $40 million for 11 Pandan Crescent and $11 million for 14 Benoi Crescent.

The two sites could also attract developers and fund managers who are looking for high-yielding assets with (a) strong tenant brand name and stable income to add to their industrial portfolio.

The asking prices were $8 million for 43 Gul Drive, $6.4 million for No. 45 and $5.7 million for No. 47. They range from $230 psf to $288 psf on existing floor areas. The divestment via an expression-of-interest exercise closed at 3pm, on Friday, Oct 14.

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Industrial property prices drop after 4 years

Industrial property prices eased last year after rising for 4 straight years. Rents fell consecutive for 2 years. The current gloomy manufacturing scene and supply glut in the near term should lead to further moderation in prices and rents. Industrial property prices fell 1.5% in Q4 from the preceding quarter, resulting in a full year fall of 1.7%. In the preceding year, the prices rose 3.5% in 2014.  Vacancy rate islandwide rose 0.2% to hit 9.4% in Q4. This is the highest in 3 years. About 2.9 million sqm of industrial space will be ready this year, to be added another 1.6 million sqm next year.  Average annual supply and demand of industrial space were just around 1.7 million sqm and 1.2 million sqm respectively over the past 3 years.

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

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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.

Low bids in Tuas site reflects cooling market

A TUAS Bay Close industrial plot for which the highest bid was shy of the consultants’ forecasts points to further signs of a cooling industrial property market, as the effects of the government’s anti-speculation measures kick in.

Mezzo Development beat two other bidders, Wee Hur Development and Soilbuild Group Holdings, to submit the top bid of S$25.5 million, JTC announced on Tuesday. This works out to S$51.28 per sq ft per plot ratio (psf ppr).

This land price is the lowest since a Yishun Street 23 plot sold in Oct 2010 for S$64 million (S$51.10 psf ppr), SLP International executive director Nicholas Mak noted.

Another B2-zoned plot in nearby Tuas South Avenue 7 – dubbed Plot 12 and which has about the same size and tenure – sold for S$31 million (S$56.01 psf ppr) in August. Already considered a low price then, it was still higher than that of this latest winning bid.

Last April, another Tuas Bay Close site, where the West Star building now stands, went at S$37.1 million (S$81.19 psf ppr).

Mr Mak said yesterday’s lower-than-expected bid could have been the result of the large supply of and potential competition from B2-zoned sites for sale in the Tuas Bay Close area.

B2-zoned sites are meant for heavier and more pollutive industrial use.

That said, the three bids were within the range of two to five bids which consultants expected.

The 2.7ha site is one that can be strata-subdivided for sale and is expected to be developed into a multi-user ramp-up factory. Mr Mak expects the breakeven price to range from S$220 to S$250 psf.

It comes with a 30-year tenure with a maximum gross plot ratio of 1.7, which means it can be developed into a project with a gross floor area of up to 4.6 ha.

R’ST Research director Ong Kah Seng noted that the winning bid was 22 per cent higher than the second highest bid of S$20.9 million (S$41.99 psf ppr) submitted by Wee Hur Development.

“That the winning developer bid is much higher than the rest shows that it has a stronger confidence in the site, but it also shows that the rest of the bidders at large were not very aggressive, which suggests developers’ dwindling interest for the conventional factory development,” he said.

Only two large land parcels – along Tampines North Drive 2 and Penjuru Road – are left for sale in the “confirmed list” of the industrial government land sales programme until the end of the year. When their turns come, their bids may take a cue from yesterday’s tender results, Mr Mak said.