CapitaLand Development tops bids for Kallang Way industrial site at S$368.9 million
The company plans to redevelop the site and establish a nine-storey food facility on it
CAPITALAND Development has placed the top bid of S$368.9 million in a Government Land Sales exercise to redevelop a Kallang Way industrial site into a food factory, the development arm of CapitaLand Group said on Wednesday (Oct 2).
The parcel of land is located in Kolam Ayer industrial estate and has an area of around 44,107 square metres (sq m).
CapitaLand Development intends to establish a nine-storey food facility on the site, with 40-footer container ramp-up access and unit configurations with flexibility for expansion.
This factory will serve a spectrum of food-related end-users including manufacturers, caterers, storage and central kitchen operators, the developer said.
CapitaLand Development will also offer more than 1,000 sq m of retail space to enhance the business mix of the facility.
JTC Corporation in June launched the industrial sales site with the requirement for an old building to be reused – the first time the state landlord is seeking for an existing terrace factory to be retained and adapted for continued industrial use.
Given that the bidders for the site will have to incorporate the retention of the three-storey block of terraced industrial units into their plans, the tender will be for a lease longer than the usual 20 or 30-year tenure. The successful tenderer for the site will be required to retain key architectural features – including the protruding solar fins – of the building, which was built in the 1980s.
The tender exercise closed on Oct 1, with CapitaLand Development as the top bidder. However, JTC said that the tender will only be awarded at a later date, after the bids have been evaluated. Four bids in total were submitted, with the lowest at about S$223.2 million.
CapitaLand Development’s partners in this tender include an affiliate of Fraxtor Group, which owns regulated real estate investment platforms in Singapore and Australia.
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