12 International Business Park for sale with guide price of $40m

Savills announced that it has been appointed as the sole marketing agent for 12 International Business Park with guide price of $40 million

• The guide price on the sale of the property at 12 International Business Park via private treaty is S$40 million.

The 12 International Business Park is located at the Southern part of the International Business Park, off Jurong Town Hall Road, and approximately 14 km from the City Centre. It has a total site area of approximately 86,115 square feet with a gross floor area of approximately 116,695 square feet.

Under the Urban Redevelopment Authority’s Master Plan 2019, the land in which 12 International Business Park sits on is zoned Business Park, with a plot ratio of maximum 2.5.

12 International Business Park has a JTC leasehold tenure of 60 years, effective from 1 December 1995, with a remaining lease of circa 35 years.

It lies within International Business Park, the first business park in Singapore, and is managed by Jurong Town Corporation. Established in 1992, the 37-hectare International Business Park (IBP) is Singapore’s pioneer business park, and has since grown into a vibrant site for knowledge-based activities. Companies establishing their presence at IBP are free to construct facilities on the land allocated to them, thus allowing for deep customisation to their specific needs. ​IBP is home to a cluster of modern high-tech buildings catering to knowledge-based activities of software development, research and some ancillary supporting uses.

Prominent developments in the vicinity include The Synergy, The Strategy, Nordic European Centre, lquest, German Centre, Acer Building, Icon @ IBP, amongst others. Social amenities, eateries and shopping facilities are readily available in the immediate vicinity and at Jurong East Town Centre, just a short drive away.

The subject property is a short drive away from the Jurong Regional Centre at Jurong Gateway, which is slated to be the largest regional centre in Singapore, with the development of Jurong Lake District and positioned to be the second Central Business District of the future.

Public transportation is available within the estate. Labour supply is available from the nearby Jurong East, Jurong West and Bukit Batok HOB estates. Accessibility to other parts of Singapore is enhanced by its proximity to the Ayer Rajah Expressway, Pan Island Expressway and Jurong East MRT Station.

Mr Sharon Teo, Managing Director, Business Space, Savills Singapore, who is handling the sale, commented: “12IBP offers a redevelopment opportunity with the current under-utilised plot ratio and long remaining land lease of 35 years. With ready infrastructure and dual feed power, potential interests include industries from ecommerce, data centre, technology and research orientated etc.”

The guide price for 12 International Business Park via private treaty sale is S$40 million.

Knight Frank in September last year released its Asia-Pacific Warehouse Review which tracked prime Asia-Pacific warehouse rents across 17 key cities, registering an average change of -0.02% half-on-half despite COVID-19. Going forward, Knight Frank expects average rental growth between 3% to 5% by the end of 2020.

Highlights of Asia-Pacific Warehouse Rents:

• Asia-Pacific warehouse rents market conditions for 16 of the 17 cities tracked are expected to remain stable or improve over the next 12 months. The positive outlook for growth in the second half of 2020 is due to higher space appetite from e-commerce players and essential commodities.
• Tokyo recorded the highest half-on half rental growth at 4.2%, due to healthy take up rates and the lack of available prime assets within the city.
• Shanghai warehouse markets recorded the healthiest rental growth compared to Beijing and Guangzhou, at 3% half-on-half, led in part by a pickup in storage demand from cold chain operators.

Tim Armstrong, Head of Occupier Services & Commercial Agency, Asia Pacific at Knight Frank says, “The outlook for industrial markets remains resilient due to robust demand from the e-commerce and essential goods sectors, as well as additional requirements for inventory storage to mitigate supply chain disconnects.”

Daniel Ding, Head of Capital Markets for Land & Building, International Real Estate & Industrial, Knight Frank Singapore, shares, “It has become clear that the winner coming out of this health crisis is very much some specialist sub-sectors within the industrial asset class, including institutional-grade warehouses. We expect rents to stabilise and gradually trend upwards in the coming months.”

Asia-Pacific Prime Warehouse Rents

Source: Knight Frank Research / *Sanko Estate

Industrial property market emerged one of the most resilient across the property sectors says a recent analysis of JTC Q2 2020 Industrial property statistics.

Ms Tricia Song, Colliers International’s Head of Research for Singapore, commenting analysing that industrial property market emerged among most resilient sectors from the JTC Q2 2020 Industrial property statistics said:

“The Singapore industrial property market emerged one of the most resilient across the property sectors (retail, office, hotel, residential), amid the global coronavirus (COVID-19) pandemic, as seen by continued warehouse demand supported by the accelerated adoption of e-commerce and government’s stockpiling of essential goods.

“That said, overall industrial rental and price declines were more pronounced in Q2 2020 than in Q1 2020, capturing the ground sentiments and impact of COVID-19 Circuit Breaker measures which started on 7 April 2020. With the rapidly evolving COVID-19 situation, the industrial sector is likely to experience continued pressures on rents and prices, as with other sectors.

“Overall, we are cautious about Singapore industrial market’s outlook for this year, and forecast the general industrial market to remain weak in 2020.”