http://www.businesstimes.com.sg/real...ding-on-market

Fragrance puts Geylang building on market

Light industrial building has indicative price of S$115m and can be strata sub-divided for sale only 10 yrs after TOP

By Lynette Khoo

[email protected]@LynetteKhooBT

8 Jan


FRAGRANCE Group Limited is selling a new, 60-year-leasehold light industrial building in Geylang by expression of interest (EOI). The indicative price for the development, located at 110, Lorong 23 Geylang, is S$115 million, said its appointed agent Colliers International. It is to receive its temporary occupation permit within the current quarter.

Zoned for "Business 1" use, the building is a fully ramp-up seven-storey development built on a 67,944 sq ft site. The total provisional strata floor area, including air conditioner ledge and void space, is about 237,000 sq ft. Units in the development have a loading capacity of up to 7.5 kilonewton per sq m.

Fragrance Group had secured the state land parcel at S$43.39 million from the Urban Redevelopment Authority in April 2012, with the condition that the development not be strata-subdivided for sale in the first 10 years upon TOP.

This restriction has been factored into the indicative price, said Tan Boon Leong, executive director of industrial services at Collier International. He noted that the nearby 60-year leasehold strata-titled projects CT Hub 1 and CT Hub 2 are selling for more, with some units going at more than S$800 per square foot (psf).

Mr Tan said that, with most new industrial sites offered under the government land sales programme coming with shorter lease tenures of 20 or 30 years, this 60-year leasehold development was an attractive investment opportunity for institutional investors. He also pointed out that the industrial site not being under the purview of JTC was another key selling point; it meant that it is not restricted by JTC's policies on assignment of lease and sub-letting, which enables the development to attract tenants who are ineligible for JTC sites.

Mr Tan disclosed that potential buyers who have made enquiries are companies in the building-materials or IT sectors. They could potentially use the industrial space for their own operations and rent out the remaining space for the first 10 years, and sell the space piecemeal after that.

"The ample car park lots and the recreational elements in this development will appeal to industrialists who place emphasis on convenient access to amenities," he said.

The building, located at the junction of Sims Drive and Aljunied Road and is near the Aljunied MRT station, has a host of recreational facilities on its rooftop - an outdoor tennis court, fitness station area and yoga deck, a swimming pool, a gymnastics room, sauna and steam rooms and BBQ area.

Other developments in the vicinity include the Atrix, Arcsphere, Aljunied Industrial Estate, Gemini@Sims, Shun Li Industrial Complex, LHK Building and the Kallang Distripark.

The EOI period closes at 2pm on Feb 26.