Food factory at Tuas Link for sale with S$52m indicative price

Feb 14, 2022

A 7-storey food factory at 30 Tuas Link 2 has been offered for sale via expression of interest (EOI) with a S$52 million indicative price, said marketing agent Colliers on Monday (Feb 14).

With a gross floor area of 268,863 square feet (sq ft), the industrial building sits on a 107,713 sq ft land parcel, which is zoned Business 2 (B2) with a plot ratio of 2.5. The site has a leasehold tenure of 30 years from the JTC, with about 19 years remaining. The land premium is fully paid, Colliers noted.

The property is approved for the manufacturing of creamer and beverages, and is currently occupied by a food and beverage (F&B) company. Its amenities include a 25-m high warehouse with an automated storage and retrieval system, loading bays with dock levellers, a well-renovated ancillary office, mezzanine floors, as well as recreational areas such as a gym.

Located at the junction of Tuas Link 2 and Tuas West Drive within the JTC Tuas Food Zone, the property is a 3-minute walk away from Tuas Link MRT station and a 2-minute drive to the Tuas Checkpoint, providing ready access to Malaysia. It is also accessible via the Ayer Rajah Expressway (AYE) and surrounded by food production and logistics facilities, such as the Logos Food21 and the upcoming F&N Foods Integrated Facility, Colliers added.

Lynus Pook, executive director and head of industrial services at Colliers Singapore said: "The supply of food production facilities is limited and continues to be in high demand from companies in the fast-growing F&B manufacturing sector. We expect strong interest in this self-contained and strategically located property from these companies, which are in expansion mode and are pursuing the opportunity to own a flagship facility to grow their business in Singapore and the region."

Since the pandemic, industrial developments have seen delays in completion. According to an earlier JTC report, last year saw total available stock increase as much as 736,000 sq m, more than double of the 357,000 sq m in 2020. However, this is still less than the increase of 865,000 sq m in 2019 before the pandemic.

That said, the industrial land and infrastructure agency remains bullish on the sector. JTC expects an estimated 2.8 million sq m of new industrial space to be completed by the end of 2022, based on approved plans at the end of last year.

Edmund Tie head of research and consulting at Lam Chern Woon added that high-tech factory and warehouse spaces will likely see higher rental growth upside of 3-5 per cent.

Later this month, 6 B2 ramp-up factory units will also be offered for mortgagee sale via auction, said marketing agent Knight Frank.

This includes an 8,148 sq ft unit at 9 Tuas South Avenue 10, with a starting price of S$1.45 million or S$177.96 per square foot (psf). The property has a 30-year leasehold with effect from Jun 18, 2013.

There is also a pair of 2-storey units at West Star Factory, 11 Tuas Bay Close, spanning approximately 7,944 sq ft each. The properties are auctioning with a guide price of over S$2 million each, said Knight Frank. Their 30-year leasehold took effect from Aug 7, 2013.

Another 3 units at Woodlands Industrial Xchange, 71 Woodlands Avenue 10, span 5,457 sq ft each. The units are listed at a starting price of S$1.55 million each or S$284.04 psf, with a 30-year leasehold which has taken effect from Apr 29, 2013.

The auctions will begin on Feb 24, 2022, at 1.30 pm. Meanwhile, the Tuas Link food factory EOI will close on Apr 7, 2022, at 3 pm.