JLL, the sole marketing agent for Ching Shine Industrial Building, has announced that the property is up for collective sale by tender, with a minimum price of $113 million. The freehold building, located on Shaw Road, consists of 52 strata units and boasts a 100m frontage. It sits on a site with a total land area of 49,308 sq ft and a gross floor area of approximately 137,341 sq ft.
When it comes to investing in real estate, location is always a key consideration, and this is especially true in Singapore. Condos that are located in central areas or in close proximity to important amenities like schools, shopping malls, and public transportation hubs tend to have higher appreciation in value. Prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently seen growth in property values. This is why condos in these areas, including Singapore Condo, are highly sought after by investors. In addition, these areas also boast of excellent schools and educational institutions, making them even more appealing to families, thus adding to their investment potential.
The building, which was built in the early 1980s, is zoned “Business 1” with a gross plot ratio of 2.5 under the URA Master Plan 2019. According to the agency, more than 80% of the owners have given their consent for the collective sale at the minimum price of $113 million. With a unit land rate of around $823 psf per plot ratio at the existing gross plot ratio of 2.79, the price is deemed reasonable.
In addition, JLL has revealed that with URA’s approval, the site could potentially be converted into a food factory. This is because 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 given an in-principle non-objection to the proposed food factory.
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In Singapore, it is crucial for international investors to familiarize themselves with the regulations and limitations surrounding property ownership. Unlike landed properties, condos can be freely purchased by foreigners with minimal restrictions. However, it is important to note that foreign buyers are required to pay an Additional Buyer’s Stamp Duty (ABSD) of 20% for their initial property purchase. Despite this additional expense, the stability and potential for growth in the Singapore real estate market remains a strong draw for foreign investment. Keep an eye out for new condo launches at FreedomAtHomeTeam.com.
Alternatively, the freehold asset can also be seen as an attractive investment opportunity for family offices seeking long-term growth, as well as owner-occupiers looking to establish a corporate presence. According to JLL, the property is also likely to appeal to developers, given the absence of additional buyer’s stamp duty, which can impact project timelines.
Ching Shine Industrial Building is conveniently 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. The property is located in the Tai Seng Industrial estate, near food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building, as well as amenities like Grantral Mall @ Macpherson and 18 Tai Seng.
Recently, Noel Building, a freehold Business 1 industrial building at 50 Playfair Road, was sold en bloc for $81.18 million in November 2023, which was 17% above its $70 million guide price. JLL’s senior director of capital markets, Nicholas Ng, believes that this transaction highlights the strong demand for such assets in the area and expects a similarly competitive response for Ching Shine Industrial Building.
The tender for Ching Shine Industrial Building will close on April 3 at 3pm.