Published September 25, 2012

Four industrial property parcels up for sale

Strong interest seen in buildings at Kaki Bukit, Ubi, Changi South, Tai Seng

By zeinab yusuf saiwalla

[SINGAPORE] Four buildings - a seven-storey corner terrace building, a five-storey industrial building, a single storey factory and an industrial redevelopment site - go on sale today.

The terrace building at 1 Kaki Bukit Place, with a built-in area of 30,570 sq ft, sits on approximately 11,950 sq ft of land. Its 60-year lease began on Nov 20, 1995, property consultancy CBRE said yesterday.

Between March and July, seven similar terrace units in the vicinity changed hands, with the latest transaction fetching $1,399 psf.

The guide price for 1 Kaki Bukit Place is $11.95 million, which works out to approximately $390 psf on the built-up area and $1,000 psf on the land area. It will be sold with vacant possession.

The second building to be sold is the Global Innovation Centre industrial building at 152 Ubi Avenue 4.

It sits on 49,187 sq ft of land and has a gross floor area of 98,246 sq ft.

The tenure of the property is 30 years, with an option to renew it for another 30 from Feb 1, 1997.

CBRE said the guide price for the building is $60 million, which works out to $611 psf per plot ratio (ppr). It will also be sold with vacant possession.

CBRE's associate director for investment properties Galven Tan, observing that Kaki Bukit and Ubi have become extremely popular locations for small- and medium-sized businesses, said: "We anticipate strong buying interest in the properties available."

The third building, a standard single-storey factory with a mezzanine level along 42 Changi South Street 1, is being sold for a guide price of $11 million, which works out to $215 psf ppr.

The building has a gross floor area of 51,204 sq ft and a tenure of 30 years, with an option to renew it for another 30 with effect from July 1, 1996.

The current lessee, independent worldwide supplier and manufacturer of high-quality printers Printronix Schweiz GmbH, is exploring a sale and leaseback of the building.

Pak Chong Building at 78 Playfair Road, the fourth building on sale, occupies a freehold site and has a land area of 25,782 sq ft.

At a guide price of $36 million, this translates to a land price of $559 psf ppr. The existing development, primarily used for light industrial, is made up of seven units with sizes ranging from 4,768.4 sq ft to 6,835 sq ft.

Marketing agent Knight Frank said each owner may expect sale proceeds ranging from $4.1 million to $5.4 million.

Ian Loh, Knight Frank's director and head of investment, is expecting strong interest in this property because it is just 250m from the Tai Seng MRT station on the Circle Line, and because of the relatively limited supply of freehold industrial sites.

The tender for Pak Chong Building will close at 3pm on Oct 24; 1 Kaki Bukit Place and Global Innovation Centre are available via private treaty, while the deadline for expression of interest in 42 Changi South Street 1 is Oct 2.