TWO industrial properties located near Tuas Checkpoint and the future Tuas Mega Port will be up for sale via expression of interest on Thursday, Colliers International said on Wednesday.
The properties are 31 Tuas South Street 5 and 8 Tuas South Street 6, which have indicative prices of S$17 million and S$6 million respectively.
31 Tuas South Street 5 is a general industrial factory located in the Tuas planning area of Singapore. The property comprises a single two-storey mezzanine factory with an ancillary office space and three single-storey factory blocks.
Its indicative price of S$17 million translates to S$107 per square foot (psf), based on a total land area of 158,402 square feet (sq ft).
The land is zoned B2 for heavier industrial use with a maximum allowable plot ratio of 1.4 under the Urban Redevelopment Authority’s Master Plan 2019. The property’s existing gross floor area (GFA) of 95,056 sq ft translates to a plot ratio of 0.6. The property also has a land tenure of 30 years starting 2006, with a remaining tenure of around 16 years.
The land premium for the property has been fully paid upfront, Colliers said, adding that the development is suitable for end-users looking for a large plot of land for their operations.
Steven Tan, senior director of capital markets and investment services at Colliers International, said the property presents an investment upside with untapped redevelopment potential.
“Given that the site has an unutilised GFA quantum it can be maximised up to a total GFA of 221,762 sq ft under the current Master Plan, subject to approval from the relevant authorities,” he added.
Meanwhile, 8 Tuas South Street 6’s indicative price of S$6 million translates to around S$183 psf based on its current total GFA of 32,663 sq ft. Situated on JTC land, the annual land rent has been waived.
The vacant five-storey detached factory building was completed in 2017 and is also located in the Tuas planning area of Singapore. It comprises a warehouse with ancillary office space, 11 parking lots and a cargo lift.
The land is zoned B2 with a maximum allowable plot ratio of 1.0. The property has a leasehold tenure of 22 years starting Oct 1, 2013, with a remaining land tenure of about 13 years.
Mr Tan said the industrial property is excellent for investors and end-users looking for warehouse space due to its high ceiling height.
Buyers can also move in for operations almost immediately as the building is newly completed, negating the need to fork out large sums of capital expenditure to spruce up the building.
Both properties are located near Tuas Checkpoint and the future Tuas Mega Port – which is slated to start its first phase of operations in 2021.
“We expect demand in the area to increase when Tuas Mega Port commences operations,” said Mr Tan.
The expression of interest exercise for both industrial properties will close at 3pm on July 16.