Tong Lee Building up for collective sale at S$410 million guide price

PRIME freehold industrial property Tong Lee Building will be put up for collective sale through an open tender on Tuesday (Mar 19), said marketing agent Strata AMC.

At a guide price of S$410 million, this puts the land rate at S$769 per square foot per plot ratio based on the gross floor area of 49,486 square metres (sq m).

The existing plot ratio of the site is 4.24, on a “as is, where is” basis, said Strata AMC’s key executive officer Bern Chen.

The plot currently houses two multi-storey towers and sits on 35/37 Kallang Pudding Road in District 13. 

It is zoned “Business 1” under the Urban Redevelopment Authority’s Master Plan 2019. Strata AMC told The Business Times that the site will continue to be slated for clean and light industry use after the sale.

The site has a land area of 11,678 sq m with 189 units with a total strata area of 38,482 sq m. There are also 175 car park lots and 14 lorry parking lots within the premises.

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“Its strategic location and potential for enhancement make it an attractive proposition for foreign investors looking to establish a presence in Singapore,” said Chen.

Potential foreign buyers of the Tong Lee site will not incur additional buyer stamp duty, which only applies to residential property and not to the commercial and industrial property sector. 

JTC’s data for the fourth quarter of 2023 showed that rentals for industrial space continued to rise, by 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 space rose by 0.6 per cent compared with the previous quarter, and 5.1 per cent yoy.

The tender for the collective sale of the building will close on May 23.