reporter2
09-03-15, 17:58
http://www.businesstimes.com.sg/real-estate/industrial-building-next-to-bendemeer-station-fetches-s88m
Industrial building next to Bendemeer Station fetches S$88m
Buyer likely eyeing capital appreciation of the property in the medium term, say market watchers
By Kalpana Rashiwala
[email protected]@KalpanaBT
3 Mar
A COMPANY linked to the Lee family that founded OCBC has sold a plum light industrial building next to the upcoming Bendemeer MRT Station on the Downtown Line, for S$88 million.
The building bears the name of the Lee family vehicle that is selling the asset - Cyberhub Holdings Pte Ltd - but the name is expected to come down when the sale is completed.
The property is believed to have been bought by entities linked to Raymond Ng Ah Hua, who controls property group BS Capital as well as listed Enviro-Hub Holdings.
On site is a seven-storey property, which has a basement car park. There are also some surface car park lots.
The building, which was completed in 2002 to high-tech industrial specifications, is on a 79,818 square foot site with a balance lease term of 50 years. Industry watchers say the existing development has probably tapped the maximum allowable gross floor area for the site.
The S$88 million price for the property works out to around S$500 per square foot based on its net lettable area, which is said to be 175,000 sq ft. The multi-tenanted building is nearly fully let.
Market watchers reckon that while the buyer can enjoy an immediate rental income stream from the property, it would probably be eyeing capital appreciation in the medium term.
"The biggest selling point of this site is its prime location next to an MRT station within the established Kallang industrial location - less than a 10-minute drive to the CBD," said an industrial property market observer.
"The new owner could also refurbish the building and seek permission from the authorities for strata subdivision, then sell strata units," he added.
Besides its good location, another strong attraction of the building is the ample car parking facilities in the basement in addition to some surface car park lots.
Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for Business 1 use with a 2.5 plot ratio (ratio of maximum gross floor area to land area). Typically, clean and light industrial and warehouse uses are allowed in Business 1 zone.
Another sizeable industrial property transaction recently was the S$38 million sale of 10 Shipyard Crescent near Benoi Basin - in the Boon Lay area. The property is on a site zoned for Business 2 use, which means it is suitable for heavy and more pollutive industrial use.
Industrial building next to Bendemeer Station fetches S$88m
Buyer likely eyeing capital appreciation of the property in the medium term, say market watchers
By Kalpana Rashiwala
[email protected]@KalpanaBT
3 Mar
A COMPANY linked to the Lee family that founded OCBC has sold a plum light industrial building next to the upcoming Bendemeer MRT Station on the Downtown Line, for S$88 million.
The building bears the name of the Lee family vehicle that is selling the asset - Cyberhub Holdings Pte Ltd - but the name is expected to come down when the sale is completed.
The property is believed to have been bought by entities linked to Raymond Ng Ah Hua, who controls property group BS Capital as well as listed Enviro-Hub Holdings.
On site is a seven-storey property, which has a basement car park. There are also some surface car park lots.
The building, which was completed in 2002 to high-tech industrial specifications, is on a 79,818 square foot site with a balance lease term of 50 years. Industry watchers say the existing development has probably tapped the maximum allowable gross floor area for the site.
The S$88 million price for the property works out to around S$500 per square foot based on its net lettable area, which is said to be 175,000 sq ft. The multi-tenanted building is nearly fully let.
Market watchers reckon that while the buyer can enjoy an immediate rental income stream from the property, it would probably be eyeing capital appreciation in the medium term.
"The biggest selling point of this site is its prime location next to an MRT station within the established Kallang industrial location - less than a 10-minute drive to the CBD," said an industrial property market observer.
"The new owner could also refurbish the building and seek permission from the authorities for strata subdivision, then sell strata units," he added.
Besides its good location, another strong attraction of the building is the ample car parking facilities in the basement in addition to some surface car park lots.
Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned for Business 1 use with a 2.5 plot ratio (ratio of maximum gross floor area to land area). Typically, clean and light industrial and warehouse uses are allowed in Business 1 zone.
Another sizeable industrial property transaction recently was the S$38 million sale of 10 Shipyard Crescent near Benoi Basin - in the Boon Lay area. The property is on a site zoned for Business 2 use, which means it is suitable for heavy and more pollutive industrial use.