JLL, the sole marketing agent of Ching Shine Industrial Building, has announced that the freehold property has been put up for collective sale by tender at a minimum price of $113 million. The building, which was built in the early 1980s, comprises of 52 strata units and boasts a 100m frontage along Shaw Road. The site has a total land area of 49,308 sq ft and a gross floor area of approximately 137,341 sq ft.
According to JLL, over 80% of the owners have given their consent for the collective sale at the minimum price of $113 million. This price equates to a unit land rate of around $823 psf per plot ratio at the existing gross plot ratio of 2.79.
The property is zoned “Business 1” with a gross plot ratio of 2.5 under URA Master Plan 2019. It also has potential for redevelopment 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, while the Singapore Food Agency has given its in-principle non-objection to the proposed food factory, according to JLL.
Aside from being a potential food factory, the freehold asset could also present an investment opportunity for family offices looking for long-term growth, as well as owner-occupiers interested in establishing a corporate presence, according to JLL. Nicholas Ng, senior director of capital markets at JLL Singapore, believes the site would also appeal to developers due to the absence of additional buyer’s stamp duty, which could potentially impact project timelines.
The property is easily accessible via major expressways like the PIE, CTE, and KPE. It is also within walking distance from Tai Seng MRT Station on the Circle Line, and is situated in the Tai Seng Industrial estate near other food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building. Amenities such as Grantral Mall @ Macpherson and 18 Tai Seng are also nearby.
A similar transaction in the area is the sale of Noel Building, a freehold Business 1 industrial building located at 50 Playfair Road. In November 2023, the property was sold en bloc for $81.18 million, which was 17% above its $70 million guide price. Ng believes that this transaction demonstrates the “fervent demand” for such assets in the area. He also expects a similarly competitive response for Ching Shine Industrial Building.
Investing in a condo in Singapore presents a multitude of benefits, one of which is the potential for capital appreciation. With its advantageous position as a global business hub and robust economic infrastructure, Singapore maintains a consistent demand for real estate. The property market in the country has displayed a continuous upward trend, with prime locations being subject to noteworthy appreciation. Savvy investors who strategically enter the market at opportune times and hold onto their properties for the long haul can reap substantial capital gains. Additionally, keeping an eye on new condo launches can also aid in making profitable investment decisions.
The tender for Ching Shine Industrial Building will close on April 3 at 3pm.