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Seven industrial units in Kewalram House (pictured) in Bukit Merah have been put up for sale for tender, marketing agent JLL announced Monday (25 August).
Comprising two ground floor units that can be used for warehouse of factory space measuring from 3,100 sq ft to 4,300 sq ft each, and five units on the third floor measuring from 2,100 sq ft to 2,400 sq ft each, the subject properties sited on a 99-year leasehold site with balance tenure of slightly over 45 years comes with total strata area of the seven units is approximately 18,800 square feet.
According to JLL, the units are expected to draw offers exceeding S$10 million for all seven units. This works out to approximately S$620 per sq ft for the ground floor units and S$480 per sq ft the units on the third floor. Buyers have the option of tendering for either all seven units or just individual units, JLL said.
Yong Choon Fah, National Director for Investments at JLL noted: “Ground floor units, which usually come with higher floor loading capacity and direct loading access, are hard to come by. Over the last one year, there were only two such units sold in the Bukit Merah Planning Area.”
“The offering, centrally located near transport nodes and residential areas, is expected to be sought after by industrialists seeking their own premises for security against rent fluctuations. It will also attract investors due to the immediate rental income from the six out of seven units that are currently tenanted”, said Ms Yong. “The gross yield of approximately 5 per cent is also attractive given the current low interest rate environment.”
A 5-storey light industrial building with 63 units on a site zoned for Business 1 use, Kewalram House is the first industrial development undertaken by the Kewalram Chanrai Group under Kewalram Realty.
The tender exercise will close on 25 September.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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