Published September 19, 2012

Upper Paya Lebar industrial building going for $32m

A FREEHOLD industrial building at 14 Little Road, has been put up for sale with an indicative price of $32 million, or $513 per square foot per plot ratio.

The existing development, Tropical Industrial Building, is located off Upper Paya Lebar Road. The eight-storey building has parking spaces for 20 cars in the basement.

It comprises eight strata-titled units with total strata floor area of some 50,289 sq ft and total gross floor area (GFA) of 62,375 sq ft.

Although the building sits on a land area of some 22,126 sq ft, with plot ratio of 2.5, no development charge is payable if a developer chooses to redevelop the site to its full potential of 62,375 sq ft (GFA).

This is because when the owners first developed the piece of land there was a road reserve which had to be transferred back to the state after the building was completed, said DTZ.

"Freehold industrial properties that are centrally located, near to residential areas and transport nodes are particularly sought after, given their limited supply," said Shaun Poh, head of investment advisory services and auction at DTZ, the sole marketing agent for the building.

"We expect this exceptional opportunity to appeal to end-users seeking a standalone property as headquarters with naming rights, or developers sourcing for an excellent industrial site for strata development," he said.

New industrial projects in the vicinity, such as The Commerz@Irving which has a 60-year tenure, and the freehold AZ@Paya Lebar have achieved average selling prices of $660 psf and $1,016 psf respectively over the past six months, added DTZ.

The subject site is situated close to private and public housing estates and eateries are readily available at the shophouses at the junction of Upper Paya Lebar Road and Little Road.

More amenities will also be available at The Commerze@Irving when it is completed in 2015 and at the Reserve Site on JTC's land sale list at Tai Seng Link zoned "Business 2-White" when it is triggered and awarded.