AN INDUSTRIAL facility in the Tampines industrial estate is on the market for S$400 million, put up for sale by Taiwanese display maker AUO.

The six-storey facility, on a massive site of 997,330 square feet, is ideally suited for semiconductor, wafer fabrication and electronics industries, said marketing agent Colliers International. 

At the guide price of S$400 million, this translates to a per square foot (psf) price of S$209.9 psf on a gross floor area of about 1.9 million sq ft. 

The facility includes nearly 1.1 million sq ft of cleanroom space, and is on a 30+28 year lease by JTC dating from June 2001, with some 35 years remaining. 

Located at 10 Tampines Industrial Avenue 3, the facility is near major manufacturing firms within the Tampines Wafer Fabrication Park. It is zoned Business 2 under the Urban Redevelopment Authority (URA) Master Plan 2019, with a maximum plot ratio of 2.5.

Checks by The Business Times showed that the facility is owned by AFPD, a wholly owned subsidiary of Taiwan-based display maker AUO. 

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AUO bought the facility from Japanese consumer electronics giant Toshiba in 2010. While the terms of the acquisition were not disclosed, Japanese media put the value of the deal at an estimated 10 billion yen (S$90 million).

In December 2023, Nikkei Asia reported that AUO would close its production line in Singapore by the end of the month, as demand for LCD screens has been sluggish. BT understands production will move to Taiwan. 

The facility owner is also open to leasing arrangements, and its expansive layout can accommodate diverse space requirements by subdividing the cleanroom, production area and ancillary office spaces, Colliers said. 

When asked for the guide rent for the facility, Colliers said that interested clients will be qualified first and subjected to JTC approval.

The development, which is approved for advanced flat panel display manufacturing, comes with specifications tailored for manufacturing processes, such as a dual-source 50 megavolt amperes of incoming power supply. It has floor-to-ceiling heights of between 5.6 and 6.5 m. 

Lynus Pook, head of industrial services at Colliers Singapore, said the facility is of “remarkable size and quality”. 

He said: “Singapore is a major electronics manufacturing hub globally, and has been a sought-after location by semiconductor giants...

“This development will be able to provide speed to market for companies which require a significant quantum of space in a ready-built facility, especially via the leasing model.”

Rents and prices of Singapore industrial space have risen for 13 straight quarters, as at the fourth quarter of 2023, but momentum is slowing, JTC data released in Jan 2024 showed. 

Industrial rents rose 1.7 per cent quarter on quarter and 8.9 per cent year on year (yoy). The increase in rentals was led by the multiple-user factory segment, which rose 10.7 per cent yoy.

The price index of all industrial spaces increased 0.6 per cent compared with Q3, and 5.1 per cent from the previous year.