Investing in real estate is an important decision, and one of the key aspects to consider is location. This is especially crucial in Singapore, where the right location can make all the difference. Condos that are strategically positioned in central areas or in close proximity to essential amenities like schools, shopping malls, and public transportation hubs tend to hold higher value over time. For instance, prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently seen an increase in property values. Families looking to invest in real estate also prioritize condos in these areas due to their accessibility to good schools and educational institutions, making them even more desirable and attractive for investment. As such, investing in properties in these prime locations, such as the ones offered by Singapore Projects, can be a smart and lucrative decision for any investor.
JLL, the sole marketing agent, has announced that Ching Shine Industrial Building is now open for collective sale by tender with a minimum price of $113 million. The freehold building, which boasts a 100m frontage along Shaw Road, is comprised of 52 strata units. It sits on a 49,308 sq ft plot of land and has a gross floor area of approximately 137,341 sq ft.
Built in the early 1980s, the property is zoned as “Business 1” under the URA Master Plan 2019, with a gross plot ratio of 2.5. Close to 80% of the owners have given their consent for the collective sale at the minimum price of $113 million, equivalent to a unit land rate of around $823 psf per plot ratio at the existing gross plot ratio of 2.79.
According to JLL, the site may potentially be converted into a food factory, subject to URA approval. The National Environment Agency (NEA) has confirmed that the site meets the buffer requirements for redevelopment into a multi-user factory and the Singapore Food Agency has given their in-principle non-objection to the proposed food factory.
The freehold asset also presents an attractive investment opportunity for family offices seeking long-term growth, as well as owner-occupiers looking to establish a corporate presence, adds JLL.
Nicholas Ng, senior director of capital markets at JLL Singapore, believes that the prime location of the property and the absence of additional buyer’s stamp duty makes it an appealing option for developers as well. The property is easily accessible via major expressways such as the PIE, CTE, and KPE, and is within walking distance from Tai Seng MRT Station on the Circle Line. It is situated in the bustling Tai Seng Industrial estate, surrounded by food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building, as well as amenities like Grantral Mall @ Macpherson and 18 Tai Seng.
In November 2023, Noel Building, a freehold Business 1 industrial building at 50 Playfair Road, was sold en bloc for $81.18 million, 17% above its $70 million guide price. Ng believes that this transaction is a testament to the strong demand for such assets in the area. He anticipates a similarly competitive response for Ching Shine Industrial Building.
The tender for Ching Shine Industrial Building will close on April 3 at 3pm.