Published November 01, 2012

Industrial building near Sims Dr up for sale

By zeinab yusuf saiwalla

[SINGAPORE] A seven-storey building, meant for light industries, near Sims Drive has been launched for sale by public tender with an indicative asking price of between $33.8 million and $36 million, or $564 to $601 per square foot per plot ratio (psf ppr).

The building is mostly occupied by Hock Tong Bee Pte Ltd-Cornerstone Wines as its corporate headquarters. The company, one of the few suppliers of wines to supermarkets here, had received an unsolicited bid of more than $30 million for the property recently, but decided to conduct a sale by tender instead.

Hock Tong Bee-Cornerstone Wines' managing director Clinton Ang said: "We're open to selling the property if - and only if - offer bids meet our price expectations."

The rectangular freehold plot takes up approximately 23,936 square feet and has a gross plot ratio of 2.5. It is zoned for Business 1 use, which means it is for light and clean industrial use which will not require a "nuisance buffer" of more than 50 metres.

An industrial building in Sims Drive was recently sold for $43.18 million or $495 psf ppr. The property was a vacant two-storey factory earmarked for demolition and redevelopment.

Marketing agent HSR said strong interest is expected for the Hock Tong Bee tender, given the fluid demand for light industrial space.

Jeffrey Goh, HSR's head of investment sales, said: "The indicative price guide is justified because the building is in excellent condition and also because of its proximity to Aljunied MRT station."

The tender closes on Nov 28 at 3 pm.