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31 Tuas South St 5 is up for $17 million while 8 Tuas South St 6 is priced at $6 million. Photo: Colliers International.
Two industrial properties – 31 Tuas South St 5 and at 8 Tuas South St 6 – will be launched for sale on 18 June via expression of interest (EOI), with indicative prices of $17 million and $6 million, respectively, revealed Colliers International.
Located within the Tuas Planning area of Singapore, 31 Tuas South St 5 is a general industrial factory comprising a single two-storey mezzanine building that comes with ancillary office space as well as three single-storey factory blocks.
Colliers noted that the property’s $17 million indicative price works out to $107 per sq ft (psf) based on its 158,402 sq ft total land area.
The site is zoned Business 2 under the 2019 Master Plan with a maximum allowable plot ratio of 1.4. The factory has an existing gross floor area (GFA) of 95,056 sq ft, which translates to a 0.6 plot ratio. It also has a 30-year land tenure that commenced from 2006, which means it has a remaining tenure of about 16 years.
Colliers added that the land premium for the development – which is suitable for end-users on the lookout for a large plot of land for their operations – has been fully paid upfront.
“This property presents an investment upside with untapped redevelopment potential. Given that the site has an unutilised GFA quantum, it can be maximised up to a total GFA of 221,762 sq ft under the current Master Plan, subject to approval from the relevant authorities,” said Steven Tan, Senior Director of Capital Markets & Investment Services at Colliers International.
8 Tuas South St 6, on the other hand, is a five-storey detached factory building that is also located within Singapore’s Tuas Planning area. Completed in 2017, the property comprises a warehouse with ancillary office space, a cargo lift and 11 parking lots.
The vacant property’s $6 million indicative price works out to $183 psf based on its total GFA of 32,663 sq ft.
Situated on JTC land, the property’s annual land rate has been waived, said Colliers. The site is zoned Business 2 with a maximum allowable plot ratio of 1.0. It has a 22-year leasehold tenure that commenced on 1 October 2013, which means it has a remaining land tenure of around 13 years.
Tan believes the property is excellent for end-users and investors looking for warehouse space due to its high ceiling height. And since the building is newly completed, it will no longer require large sums of capital expenditure to spruce it up and buyers can move in immediately for operations.
“Both properties are likely to benefit from being located near the future Tuas Mega Port, which will commence its first phase of operations with two berths in 2021. We expect demand in the area to increase when Tuas Mega Port commences operations,” added Tan.
The EOI exercise for the two industrial properties closes on 16 July.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg