25-storey integrated project in Jurong attracts interest

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http://www.straitstimes.com/archive/friday/premium/money/story/25-storey-integrated-project-jurong-attracts-interest-20140321

INVESTORS TURN TO COMMERCIAL UNITS AND OVERSEAS OPTIONS

25-storey integrated project in Jurong attracts interest

Published on Mar 21, 2014

http://i.imgur.com/JjqvTmf.jpg
Artist's impression of the Vision Exchange in Jurong. The 740-unit project comprises 53 medical suites, 47 retail units and 640 office units. -- PHOTO: SIM LIAN GROUP

By Cheryl Ong


COMMERCIAL units have been a hit with investors over the past year so the launch of an integrated development in the Jurong Gateway district is likely to keep interest on the boil.

Sales for the strata-titled Vision Exchange in Venture Drive start today for those who have expressed buying interest.

Walk-in investors can secure units in the 25-storey project at the official launch tomorrow.

There will be 250 units released for sale in this first phase, said developer Sim Lian Group in a statement yesterday.

Market observers said the supply of strata-titled commercial units in the vicinity is limited but buying and leasing demand for office units in Jurong is untested.

The 740-unit project comprises 53 medical suites spanning 183 to 1,163 sq ft; 47 retail units of 301 to 1,023 sq ft; and 640 office units ranging from 441 to 1,690 sq ft.

Office units will cost $2,150 per sq ft (psf) on average, while medical suites and retail units will go for about $4,498 psf, said Sim Lian. The developer's price list obtained by The Straits Times showed that Sim Lian had factored in an 18 per cent discount at the 99-year leasehold project.

Marketing agents told The Straits Times that office units from the sixth to 12th floors will be released for sale in this phase and major health-care groups have indicated their interest in bulk purchases of medical suites.

The development is expected to be completed in 2017.

Property experts said the project could benefit from the fact that the commercial market has escaped property cooling measures like the additional buyer's stamp duty and seller's stamp duty.

Ms Alice Tan, research head at property firm Knight Frank, said demand is likely to come from end-users who want to take advantage of Jurong Lake District's growth potential.

But she pointed out that investors could be mindful of leasing competition from the nearby International Industrial Park, where rents are cheaper. "Businesses that want to have their headquarters set up in Jurong East because they have factories in the area may want to have an office there.

"There has been some leasing interest for office space in Jem recently, so that could indicate there is demand for office space in the area."

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http://www.businesstimes.com.sg/archive/friday/premium/companies/others/vision-exchange-first-phase-sale-tomorrow-20140321

Published March 21, 2014

Vision Exchange: first phase sale tomorrow

By raphael lim [email protected]


SIM Lian Group will launch the first phase of its integrated development, Vision Exchange, for sale tomorrow.

Located in Jurong East, the 99-year leasehold commercial property will house a 25-storey office tower with two levels of food & beverage (F&B) space and medical suites, the company said in a statement yesterday.

Said Kuik Sing Beng, executive director of the group: "Vision Exchange is one of the few strata offices in Jurong Regional Centre, and businesses will benefit from being at the heart of this thriving commercial and leisure destination in Singapore."

Expected to be completed in 2018, the development will feature 740 units, with a total gross floor area of almost 690,000 square feet.

Unit sizes range from 183 to 1,690 sq ft, with options to combine units for larger work or retail spaces.

Of the 740 units, 640 will be offices. The remaining 100 units are split between 47 F&B units and 53 medical suites.

A total of 250 units will be released in the first phase with average prices of $2,150 psf for office units and $4,498 psf for medical suites and F&B units. Sim Lian did not give a breakdown on the type of units it will make available.

The medical suites at Vision Exchange are targeted at both doctors and investors, the company said.

"We are confident that Vision Exchange will be a good investment to owner occupiers and investors, and will complement the live, work, play and learn environment for the community," said Mr Kuik.

The building's location in Jurong Gateway will give businesses access to a resident catchment population of one million, as well as global companies at the International Business Park, Sim Lian said. It will also be down the road from the upcoming Ng Teng Fong General Hospital and Jurong Community Hospital.

Vision Exchange is one of at least five mixed developments being built that also include medical suites.

Others include SBF Center in the central business district, Royal Square in Novena, and Connexion, which is above Farrer Park MRT. Prices of medical suites at these developments were going for $4,200 to $4,500 psf in the past six months.

Yesterday, RB Capital announced that it will be launching its Farrer Square medical suites - located opposite Connexion - for sale next month.

Consultants that BT spoke to noted a rising interest in medical suites from investors in recent years, with some of them seeing it as an alternative asset class.

Vision Exchange is Sim Lian's first development in Singapore that focuses primarily on commercial space.