http://www.businesstimes.com.sg/arch...-sale-20140826

Published August 26, 2014

Seven industrial units in Bukit Merah put up for sale

By kenneth lim

[email protected] @KennethLimBT


A TENDER exercise has opened for seven industrial units at Kewalram House in the Bukit Merah Industrial Estate, agent JLL announced on Monday.

The tender will close at 2.30 pm on Sept 25. Bidders may tender for any or all of the units.

The offering comprises two units of 3,100 square feet and 4,300 square feet on the ground floor that can be used for warehouse or factory space, and five units on the third floor that range from 2,100 sq ft to 2,400 sq ft. The total floor area of the units is 18,800 sq ft.

There are just over 45 years left on the tenure of the 99-year leasehold properties.

Six of the units are currently tenanted, with a gross yield of about 5 per cent, JLL national director for investments Yong Choon Fah said.

The vendors are hoping for offers of more than S$10 million for all seven units, or north of S$620 per square foot for the ground floor units and S$480 per square foot for the third floor units.

The five-storey Kewalram House was built in the 1980s with 63 units on a site zoned for Business 1, or for clean and light industry. The gross floor area of the building relative to the site area is still within the maximum plot ratio of 2.5.

JLL is noting the potential for an en bloc sale as part of its marketing strategy.

"There could be potential for future en bloc opportunity as the gross floor area (GFA) of the building has not exceeded the maximum GFA allowed under the Master Plan 2014," Ms Yong said.

"The units for sale represent around 9.6 per cent of the total share value and 9.3 per cent of the total strata area in the development," she added.

The long remaining tenure is also being stressed. Ms Yong noted that most industrial land parcels being offered by the government are now capped at 30 years, about 15 years less than the remaining tenure on the Kewalram units.