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5 Oct 2013

Guang Ming building in Tai Seng sold for $45.8m

Source; Business Times

By: Kalpana Rashiwala 

GUANG Ming Industrial Building, which is literally a stone's throw from Tai Seng MRT Station, has been sold through a collective sale for $45.8 million.

Brokered by Cushman & Wakefield through a private treaty deal, the sale is subject to approval from Strata Titles Board.

The price paid for the freehold property, which is on a 19,789 square foot site, translates to $837 per square foot of potential gross floor area inclusive of an estimated $12.2 million development charge payable to the state to build a "white" component allowed under the site's zoning.

Strong interest in eastern factory units

Improved accessibility and new buildings reasons for area's draw

Source: The Straits Times

By: Rachel Scully

INDUSTRIALISTS have been drawn to the east for years

But now interest is growing even stronger in factory units in the Eunos, Kallang, Paya Lebar and Tai Seng areas.

One major new industrial site is in this district: JTC Corp's Paya Lebar iPark. And the area will also boast the upcoming commercial hub Paya Lebar Central.

"Accessibility has been improved in the area with new roads and infrastructure, which makes the distribution of goods and services easier," said Knight Frank Singapore director and head of industrial Lim Kien Kim.

"There is also a clustering of industries which makes operations more convenient and efficient for the small and medium enterprises there."

The four areas - technically in the eastern half of Singapore - are more central than factories to the far west in Tuas, or up north in Woodlands.

The most viewed industrial project on STProperty's website last month was Oxley Bizhub, with a lease of 60 years (see Table 1).

It had an average asking unit price of $592 per sq ft (psf). The facility is less than 1km from the nearest MRT station, Tai Seng on the Circle Line.

Data from the Urban Redevelopment Authority (URA) showed that the two units transacted last month in Oxley Bizhub were sold at $438 psf and $689 psf between Sept 2 and 19 (see Table 2).

Freehold AZ @ Paya Lebar had the highest transacted unit price of $1,155 psf during the two-week period, while Synergy @ KB in Kaki Bukit had the lowest at $348 psf.

SLP International head of research Nicholas Mak said: "Buyers of industrial property in these areas are in the light and clean industries in line with the B1 zoning. Gross rental yields for the freehold units are between 2 and 4 per cent, while those with 60- and 30-year leaseholds have higher yields of between 4.5 and 8 per cent."

Experts say the main disadvantage of industrial units in these four areas is the arterial roads which are relatively narrow and tend to be congested during peak hours.

Knight Frank's Lim added: "With a huge supply pipeline of industrial units flowing into the market from the end of the year, we are likely to see landlords chasing for tenants in the short term, as well as selling prices coming under pressure."