Far East Organization sells Tuas industrial asset to PGIM JV for S$121.1 million
It will be redeveloped into a five-storey, fully ramp-up prime logistics facility with about 1.1 million sq ft of GFA
[SINGAPORE] Far East Organization has sold a sizeable industrial property at 51 Tuas View Link for S$121.1 million to a joint venture (JV) between PGIM’s real estate business and Northstar Capital Logiprop.
A caveat was lodged for the transaction earlier this month for the property at 51 Tuas View Link, which has a site area of about 456,810 square feet (sq ft). The site has a 60-year leasehold tenure from July 1996, leaving a balance term of about 30 years.
The S$121.1 million transaction price works out to S$265 per square foot.
The sale followed a competitive marketing process that drew interest from a broad range of investors and end-users, including funds, developers, owner-occupiers and real estate investment trusts, said Colliers Singapore, who brokered the deal.
The asset will be redeveloped into a five-storey, fully ramp-up prime logistics facility with about 1.1 million sq ft of gross floor area. The development will have Green Mark Platinum certification and prime-grade specifications to meet tenants’ increasing demand for operational efficiency and sustainability considerations, said PGIM on Monday (Feb 2).
“Amidst a rebound in real estate value, persistent supply shortages and growing demand for capital to meet sustainability requirements, value-add opportunities across Asia-Pacific offer compelling potential for income growth,” said David Fassbender, PGIM deputy head of Asia-Pacific for real estate and senior portfolio manager of Asia-Pacific value-add strategies.
Still resilient
Industrial market fundamentals have remained resilient, with Singapore’s rentals and price indices continuing to trend upwards in 2025, amid global uncertainty, said Colliers. In the fourth quarter, prices for all industrial spaces rose 1.4 per cent on a quarterly basis.
Year on year, prices grew by 5 per cent, compared with the 3.5 per cent increase in 2024.
Rents of Singapore’s industrial assets climbed 2.4 per cent in 2025, slowing from a 3.5 per cent gain in 2024 and an 8.9 per cent jump in 2023. On a quarterly basis, industrial rents edged up 0.5 per cent in Q4. While momentum is slowing, the latest data showed 21 straight quarters of increases from Q4 2020.
The 51 Tuas View Link site is zoned for Business 2 use and suitable for both light and heavy industrial activities, as well as warehousing. Two blocks of single-storey warehouses with mezzanine levels now stand on the site.
“Increasingly hard to come by”
“Large, private leasehold non-JTC B2 sites are increasingly hard to come by, especially those that offer both immediate warehouse utility and clear headroom for intensification,” said Tan Boon Leong, industrial sales lead at Colliers Singapore.
“This transaction reinforces the west’s strategic relevance as Singapore’s logistics and industrial ecosystem continues to evolve.”
Located within the Tuas South precinct, the property is in close proximity to the new Tuas Mega Port and Tuas Biomedical Park.
Tuas Port officially opened on in September 2022 and will be developed in phases. The first phase targeted to reach 20 million twenty-foot equivalent units annually when fully operational in 2027.
Said Colliers: “The continued consolidation of container operations towards Tuas reinforces the western region’s position as a key logistics and industrial node, supporting occupier and investor interest in quality industrial stock.”
The Business Times previously reported in May 2025 that Far East Organization had put the property on the market at an indicative guide price of about S$138 million.
Boosted investor sentiment
The development is on part of a bigger land parcel spanning about 969,700 sq ft, which Far East Organization clinched at a state tender that closed in 1996. The group developed the remaining land into the Tradelink Place project, which has been fully sold.
Observers have said it makes sense for Far East Organization to sell 51 Tuas View Link, which is a non-core asset, and recycle capital.
Declining interest rates last year have boosted investor sentiment, further reinforcing the appeal of quality industrial assets due to their stable returns and favourable yield spreads.
Notable transactions in 2025 include CapitaLand Ascendas Real Estate Investment Trust’s divestment of five properties for S$329 million, and Mapletree Industrial Trust’s sale of three properties to Brookfield Asset Management for S$535.3 million.
Developer Soon Hock Group bought Ching Shine Industrial Building in Tai Seng for S$113.2 million, while MacPherson Industrial Complex was sold for S$103.9 million to an undisclosed buyer in May.
The investment market is set to gain further momentum in 2026 as a greater range of investible assets moves into positive carry territory, market watchers said.
