Two multi-storey warehouses in Tampines up for sale

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http://www.straitstimes.com/archive/...-sale-20140318

Two multi-storey warehouses in Tampines up for sale

Published on Mar 18, 2014

By Rennie Whang


TWO adjacent multi-storey warehouses in Tampines are up for sale with an indicative price of $70 million in total.

The properties, which can be sold jointly or separately, are zoned for Business 2 use, which allows heavy industrial use.

They have a a gross plot ratio of 1.4 and a tenure of 23 years left on their leases. The price works out to about $235 per square foot (psf) of floor area for the warehouses, which have a total site area of 214,880 sq ft.

Marketing agent Colliers International said the expression-of-interest period will end on April 30.

The warehouses are being sold by HC Design, which occupies one of them, a six-storey block at 21 Tampines Street 92. This building includes its design studio, a 20,000 sq ft furniture gallery and three model homes to show customers the design possibilities.

The eight-storey warehouse at 23 Tampines Street 92 is fully leased to anchor tenants Best Denki and self-storage company StorHub.Monthly rents in the locality range from $1.80 to $2.50 per sq ft, depending on the size, floor level and if it has air-conditioning.

It is understood that HC Design may lease part of the 21 Tampines Street 92 building from the buyer or shift to smaller premises.

Mr Tan Boon Leong, executive director (industrial services) at Colliers International, noted that this was the only Government Land Sales site for sale in the immediate vicinity in recent years, with many of the surrounding buildings sitting on Housing Development Board-owned land. "As a GLS site, it's not restricted by HDB regulations. If an owner wishes to subdivide the floor, rent or sell the property, he will not need to get HDB approval."

He added that unlike other industrial properties on GLS sites, which tend to be built and sold on a strata-titled basis, these warehouses are being sold as entire buildings.

"This gives the successful buyer the option to use the buildings for his own occupation, or to lease out part of the buildings."

A 53,820 sq ft light industrial building in the same road was sold in February last year for $26.65 million to Keppel Data Centres Holding, which uses it as a data centre facility.

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http://www.businesstimes.com.sg/arch...-sale-20140318

Published March 18, 2014

Two adjacent warehouses in Tampines up for sale

By lee meixian [email protected]


TWO adjacent multi-storey warehouses located at 21 and 23 Tampines along Street 92 have been put up for sale by expression of interest (EOI) by architecture and interior design firm HC Design.

The total indicative price for the properties, which sit on a Government Land Sales (GLS) site, is about $70 million, said Colliers International, the exclusive marketing agent for the sale, yesterday.

Given that the site area is about 214,880 square feet with an allowable gross plot ratio of 1.4, this works out to a price of about $235 per sq ft per plot ratio.

The industrial site has a 30-year leasehold tenure with the Urban Redevelopment Authority with effect from July 9, 2007. Under the 2008 Master Plan, it is zoned for "Business 2" or heavier industrial use.

No land rent is payable for the site since it was purchased under the GLS programme, unlike other sites for sale in the immediate vicinity which mainly sit on land owned by the Housing and Development Board (HDB) and would thus have to pay rent to the authorities, said Tan Boon Leong, executive director of industrial services, projects and sales at Colliers.

"For such sites (on HDB land), when you sell or lease out your property, you also need to obtain HDB approval, thereby making it more difficult to rent or sell because another party is involved in the approval process," he added.

That these two warehouses are sold as an entire building (be it jointly or separately) is also unlike other industrial developments built on GLS sites that are typically sold on a strata-titled basis, he said.

"This gives the successful buyer the option to use the buildings for own occupation, or to lease out part of the buildings."

The 21 Tampines warehouse (where HC Design is now situated) has six storeys with a total gross floor area of about 164,969 sq ft. It was completed in June 2011.

A sale and leaseback arrangement is possible for HC Design, "if it makes commercial sense", Mr Tan said.

The 23 Tampines warehouse has eight storeys and is specifically designed for light storage purpose. It has a total gross floor area of about 132,837 sq ft and was built in January 2011. It is currently fully leased to two anchor tenants - Best Denki and StorHub.

Interested parties can submit their EOI by 12pm on April 30.