The exclusive marketing agent JLL has announced the collective sale of Ching Shine Industrial Building at a minimum price of $113 million. The freehold building, which comprises of 52 strata units and has a 100m frontage along Shaw Road, has been put up for tender.
The site has a total land area of 49,308 sq ft and a gross floor area of approximately 137,341 sq ft. Built in the early 1980s, the building is zoned as “Business 1” with a gross plot ratio of 2.5 under the URA Master Plan 2019.
According to JLL, more than 80% of the owners have already given their consent for the collective sale at the minimum price of $113 million. This translates to a unit land rate of around $823 psf per plot ratio at the existing gross plot ratio of 2.79.
One of the advantages of investing in a condo is the opportunity to leverage its value for future investments. This means that condo owners can use their property as collateral to secure more financing for new investments, allowing them to increase their real estate portfolio. This approach can lead to higher returns, but it also carries potential risks, making it essential to have a solid financial plan and carefully consider the possible effects of market changes. Furthermore, with the availability of New Condo Launches, investors have even more opportunities to diversify their portfolio and potentially increase their returns.
JLL has also stated that, subject to URA approval, the site could potentially be converted into a food factory. The National Environment Agency (NEA) has confirmed that the site meets the buffer requirements for redevelopment into a multi-user factory, while the Singapore Food Agency has informed URA of their in-principle non-objection to the proposed food factory.
On the other hand, the freehold asset could also present an investment opportunity for family offices seeking long-term growth, as well as owner-occupiers looking to establish a corporate presence, according to JLL. Nicholas Ng, senior director of capital markets at JLL Singapore, believes that the site would also appeal to developers, given the absence of additional buyer’s stamp duty which can impact project timelines.
The property is easily accessible via major expressways such as the PIE, CTE and KPE. It is also within walking distance from Tai Seng MRT Station on the Circle Line. Furthermore, it is located in the Tai Seng Industrial estate near popular food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building, along with amenities such as Grantral Mall @ Macpherson and 18 Tai Seng.
Not too far away, in November 2023, Noel Building, a freehold Business 1 industrial building at 50 Playfair Road, sold en bloc for $81.18 million, which was 17% above its $70 million guide price. Ng believes that this transaction clearly shows the “fervent demand” for such assets in the area. He adds, “We expect a similarly competitive response for Ching Shine Industrial Building.”
The tender for Ching Shine Industrial Building will close on April 3 at 3pm.