Trio of industrial assets sitting on land lease of 11 years up for sale
Marketing agent JLL says investors in the properties, marketed at S$12 million each, could be looking at a yield of about 10%
THREE industrial properties in the Tuas South industrial hub are on the market for a combined indicative price of S$36 million, said marketing agent JLL on Wednesday (Sep 11).
The sites can be sold collectively or individually, with each property being marketed at S$12 million. All three assets have about 11 years left on their leases.
Tan Boon Leong, JLL’s executive director for logistics and industrial, said: “Potential investors would be end-users looking to set up a factory or warehouse quickly.”
He added that potential takers would likely include those in construction, the services of which will be in demand in the area when the Pasir Panjang port moves to Tuas South.
“If there are investors keen to lease out, they could potentially look at a yield of around 10 per cent, based on the existing indicative price of S$12 million”.
The first site, at 9 Tuas South Street 9, consists of a three-storey detached factory with an ancillary office and a single-storey loading area. With a plot of over 90,000 square feet (sq ft), the price translates to S$185 per square foot (psf) on a GFA of 65,000 sq ft.
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The second property, at 10 Tuas South Street 10, comprises a four-storey factory building, a single-storey building and a temporary ancillary workers’ dormitory. The site’s price is S$156 psf on a GFA of about 77,000 sq ft.
The third site, at 11 Tuas South Street 9, offers a single-user general industrial detached factory with a two-storey wing and a three-storey wing, said JLL. With a built-up area of 65,000 sq ft, the price is S$185 psf.
JLL said the vendor, the “largest crane and heavy-haulage company in Singapore”, cannot be named because confidentiality clauses are in force.
The three sites are now used for warehousing and storage of construction cranes, as well as for freight-transportation services. The property at 10 Tuas South Street 10 is under a JTC leasehold; the other two are non-JTC properties.
Based on the Urban Redevelopment Authority’s Master Plan 2019, all three sites are approved for Business 2 usage with a plot ratio of 1.0.
Tan said the buyer could potentially use the three sites for general industries such as hardware, construction, oil and gas, logistics services, crane-transportation and heavy motor trades.
Prices and rents of Singapore industrial space rose in the second quarter of 2024. However, while rents have continued rising, rental growth has slowed, said JTC in July.
Industrial rents climbed by 1 per cent quarter on quarter (qoq) in Q2, down from the 1.7 per cent rise in Q1. Year on year, Q2’s rental growth was 6.6 per cent.
The price index of all industrial spaces went up 1.2 per cent qoq in Q2, reversing the 0.2 per cent decline in Q1; the year-ago quarter clocked 3 per cent growth.
The expression of interest exercise ends on Thursday, Oct 10.
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