reporter2
10-12-21, 09:17
Philips seen as selling last of its Toa Payoh properties
Dec 10, 2021
https://i.imgur.com/Sp0VeMl.png
HEALTH technology company Philips is in the process of selling its remaining industrial property in Singapore. Discussions to sell the property, at 622 Lorong 1 Toa Payoh, are in advanced stages.
Word on the grapevine is that Philips appointed CBRE to conduct an expression of interest (EOI) exercise for a sale-and-leaseback of the 6-storey property, known as the Philips APAC Center. The EOI exercise is said to have been launched in September. CBRE declined to comment.
Industry observers say when the building was put on the market, the indicative pricing expectation was about S$100 million.
The building, which was opened in 2016, has a gross floor area (GFA) of about 409,000 sq ft and stands on a 163,560 sq ft site with a balance lease term of 21.5 years.
A Philips spokesperson shied away from talking about the sale process for the property but gave the rationale for seeking a divestment of the asset. "At Philips, we have transformed our organisation to become a leader in health technology. The strategic divestment of the Signify (lighting) and Domestic Appliances businesses has been part of this."
Although Philips - or Royal Philips as it is officially known - has divested these 2 businesses, they continue to operate within its Toa Payoh property as tenants.
"It was therefore a natural step for us to change our ownership of the APAC Center to reflect the fact that it is now a multi-tenant site," said the Philips spokesperson.
"Our commitment to Singapore remains unchanged - the APAC Center continues to be our headquarters in the Asean Pacific (APAC) region. The APAC Center is an important symbol of Philips' rich and deep 70-year history in Singapore and across the region. Philips' innovations will continue to drive positive change for the whole region."
Following the IPO of Philips Lighting (later renamed Signify) by Royal Philips in 2016, Philips Lighting (Signify) became a separate company. Royal Philips sold its remaining shares in Signify in September 2019; it also sold the Domestic Appliances business this year to global investment firm Hillhouse Investment.
Under the Urban Redevelopment Authority's current Master Plan 2019, the site on which the Philips APAC Center stands is currently zoned for Business 1 use with 2.5 gross plot ratio (ratio of maximum GFA to land area).
The award-winning property, designed by LAUD Architects, involved a remodelling of the shell of Philips' earlier building on the site, according to media reports.
Philips demolished part of the old building and sought a lease top-up for the site from the government, resulting in the site's current 29-year leasehold tenure from June 2014.
Philips established operations in Singapore in 1951. It no longer has manufacturing facilities here, but it used to employ thousands of factory workers. The 622 Lorong 1 Toa Payoh property is one of 4 buildings that made up the Philips complex; the buildings were linked by bridges so that employees could use the sheltered walkways to access different areas.
Observers say that as Philips transitioned from using Singapore for manufacturing operations, to regional headquarters and focusing on R&D, it needed less space.
So it returned 2 of the 4 sites to the government in late 2015; the buildings on these 2 plots, across the road from 622 Lorong 1 Toa Payoh, have since been demolished. Both land parcels are currently zoned residential at gross plot ratio 4.5 in Master Plan 2019.
Philips' leases from the government for these 2 plots, as well as the 622 Lorong 1 Toa Payoh site, began in 1970.
The government lease for Philips' fourth site, at 5 Toa Payoh West, began in 1994. Last year, the group completed the sale of this property, which is next to the Philips APAC Center, for S$3.2 million; the lease for the site expires in May 2030. It was bought by a joint venture between property management services group LHN and car-fleet rental company LCR.
Dec 10, 2021
https://i.imgur.com/Sp0VeMl.png
HEALTH technology company Philips is in the process of selling its remaining industrial property in Singapore. Discussions to sell the property, at 622 Lorong 1 Toa Payoh, are in advanced stages.
Word on the grapevine is that Philips appointed CBRE to conduct an expression of interest (EOI) exercise for a sale-and-leaseback of the 6-storey property, known as the Philips APAC Center. The EOI exercise is said to have been launched in September. CBRE declined to comment.
Industry observers say when the building was put on the market, the indicative pricing expectation was about S$100 million.
The building, which was opened in 2016, has a gross floor area (GFA) of about 409,000 sq ft and stands on a 163,560 sq ft site with a balance lease term of 21.5 years.
A Philips spokesperson shied away from talking about the sale process for the property but gave the rationale for seeking a divestment of the asset. "At Philips, we have transformed our organisation to become a leader in health technology. The strategic divestment of the Signify (lighting) and Domestic Appliances businesses has been part of this."
Although Philips - or Royal Philips as it is officially known - has divested these 2 businesses, they continue to operate within its Toa Payoh property as tenants.
"It was therefore a natural step for us to change our ownership of the APAC Center to reflect the fact that it is now a multi-tenant site," said the Philips spokesperson.
"Our commitment to Singapore remains unchanged - the APAC Center continues to be our headquarters in the Asean Pacific (APAC) region. The APAC Center is an important symbol of Philips' rich and deep 70-year history in Singapore and across the region. Philips' innovations will continue to drive positive change for the whole region."
Following the IPO of Philips Lighting (later renamed Signify) by Royal Philips in 2016, Philips Lighting (Signify) became a separate company. Royal Philips sold its remaining shares in Signify in September 2019; it also sold the Domestic Appliances business this year to global investment firm Hillhouse Investment.
Under the Urban Redevelopment Authority's current Master Plan 2019, the site on which the Philips APAC Center stands is currently zoned for Business 1 use with 2.5 gross plot ratio (ratio of maximum GFA to land area).
The award-winning property, designed by LAUD Architects, involved a remodelling of the shell of Philips' earlier building on the site, according to media reports.
Philips demolished part of the old building and sought a lease top-up for the site from the government, resulting in the site's current 29-year leasehold tenure from June 2014.
Philips established operations in Singapore in 1951. It no longer has manufacturing facilities here, but it used to employ thousands of factory workers. The 622 Lorong 1 Toa Payoh property is one of 4 buildings that made up the Philips complex; the buildings were linked by bridges so that employees could use the sheltered walkways to access different areas.
Observers say that as Philips transitioned from using Singapore for manufacturing operations, to regional headquarters and focusing on R&D, it needed less space.
So it returned 2 of the 4 sites to the government in late 2015; the buildings on these 2 plots, across the road from 622 Lorong 1 Toa Payoh, have since been demolished. Both land parcels are currently zoned residential at gross plot ratio 4.5 in Master Plan 2019.
Philips' leases from the government for these 2 plots, as well as the 622 Lorong 1 Toa Payoh site, began in 1970.
The government lease for Philips' fourth site, at 5 Toa Payoh West, began in 1994. Last year, the group completed the sale of this property, which is next to the Philips APAC Center, for S$3.2 million; the lease for the site expires in May 2030. It was bought by a joint venture between property management services group LHN and car-fleet rental company LCR.