Wilmar buys former Coke bottling plant in Tuas for S$29.5m
It is expected to use the property partly for operations of its 50% owned unit Aalst Chocolate
Kalpana Rashiwala
Singapore
WILMAR International is buying the iconic former Coca-Cola bottling plant in Tuas for S$29.5 million.
The property, on a sprawling site of about 489,000 sq ft at 457 Jalan Ahmad Ibrahim, is being sold by Coca-Cola Singapore Beverages.
The property is in a food zone.
According to the grapevine, Wilmar is likely to refurbish the existing complex and add new structures on the site.
The Business Times understands that the plan is to use part of the property for the manufacturing operations of homegrown Aalst Chocolate, in which Wilmar acquired a half stake in 2017.
Aalst founders Richard Lee and Connie Kwan hold the remaining 50 per cent of the company, which was a winner of the E50 awards in 2014, 2015 and 2016
Wilmar is also expected to use the property for its own food distribution operations.
The property is on a site leased by JTC Corporation on 60-year leasehold tenure starting from July 1986, leaving a balance term of about 26 years.
Under the Urban Redevelopment Authority's Master Plan 2019, the site is zoned for Business 2 use with 1.4 plot ratio (ratio of maximum gross floor area to land area). The property is also within a JTC-designated food zone, where companies are allowed to carry out food manufacturing activities.
A buffer zone is imposed where hazardous and pollutive industries are not allowed to operate, to prevent potential cross contamination.
Coca-Cola relocated its bottling plant operations from the Tuas site to Malaysia in 2016, according to earlier media reports. However, the group has continued to use the premises for warehousing purposes.
The sale will be on vacant possession. The existing complex has a gross floor area of about 472,000 sq ft - with components of varying heights.
The four-storey office, three-storey production and two-storey service blocks have a link bridge at level two. There is also a workshop and a warehouse.
CBRE is understood to have brokered the sale of the Coca-Cola property, which is a landmark along Jalan Ahmad Ibrahim. It is between Asia Pacific Breweries (where the Tiger and Heineken brands of beer are produced) and Hoya Building (owned by Ascendas Reit and fully leased to Hoya Medical Singapore).
Besides its prominent road frontage along Jalan Ahmad Ibrahim, the former Coke bottling plant is near the Tuas West Road and Tuas Crescent MRT stations along the East-West Line; it is also close to the Second Link. The locale is near the Ayer Rajah and Pan-Island expressways.
The complex was developed by Fraser & Neave and officially opened in 1990. Coca-Cola Singapore Beverages - the entity which is selling the property - was formerly known as F&N Coca-Cola (Singapore). In 1992, F&N entered a 75:25 joint venture with The Coca-Cola Company. That was when Coke first put up its logo at F&N's Tuas bottling plant. In 1999, F&N sold its stake in the joint venture to its partner, Coca-Cola.
Investment sales demand in Singapore industrial properties (including logistics assets) is expected to be more resilient this year compared with other sectors such as retail, hospitality and office.
"The key pillars of demand for big-ticket industrial investment property transactions are those end users and trades that find relevancy and improved business in a Covid-induced environment," said Savills Singapore executive director Alan Cheong.
"These include those involved in e-commerce, food production/storage (including urban farming) and pharmaceutical/healthcare businesses."
