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Overall industrial investment sales in Singapore increased by 37 percent on an annual basis to $4.1 billion (USD3.1 billion) for the whole of 2017, according to a new report from Colliers International.
However, it plummeted by 78.3 percent on a quarterly basis to $631.8 million in Q4 2017 due to a lack of major deals compared to the previous quarter. For instance, ExxonMobil Corporation’s XOM subsidiary completed the acquisition of Jurong Aromatics Complex for around $1.97 billion last August.
In fact, the top three biggest deals during the quarter did not even surpass a quarter of a million, with industrial properties in 1 Serangoon North Avenue 6 and 8 Tuas South Lane sold for $80.5 million and $95 million respectively. An 80 percent stake in 700 Ang Mo Kio Avenue 5 was also acquired for $240 million.
Specifically, industrial deals in the public segment declined by 28 percent quarter-on-quarter and 92 percent year-on-year to $7.9 million last quarter. For the entirety of 2017, it plunged 77 percent to $37.4 million.
Likewise, that in the private sector fell by 78.5 percent on a quarterly basis to $623.9 million last quarter, but it rose 43.5 percent on an annual basis to $4.1 billion for the whole of 2017, thanks to the Jurong Aromatics Complex deal and the $430.1 million en bloc sale of Citimac Complex.
“REITs have been relatively more active in divesting than acquiring industrial assets in 2017, whilst we see growing institutional interest in niche industrial assets, Colliers Managing Director Tang Wei Leng told Singapore Business Review.
“Given the stabilising outlook for the industrial property sector, we foresee a pick-up in interest in industrial properties by REITs and other qualified institutional investors,” added the property consultancy.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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