Ravi Chandran
The guide price for the four freehold industrial B2 strata terrace Mandai factories is S$72 million
Knight Frank Singapore announced today that it has been exclusively appointed to offer 4 freehold industrial B2 strata terrace factories within Mandai Estate for sale, via Expression of Interest (EOI).
The 4 strata terrace factories are located within BHL Factories, at 2A and 2B Mandai Estate, and have a combined strata area of 61,193 sq ft. BHL Factories enjoys easy accessibility to other parts of Singapore via the Bukit Timah Expressway (BKE), Kranji Expressway (KJE) and Seletar Expressway (SLE).
The guide price for the 4 Mandai factories is S$72 million.
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As the site of the 4 Mandai factories is zoned “Industrial (B2)”, no Additional Buyer’s Stamp Duty will be imposed for the transaction of the property.
Knight Frank Singapore said that freehold, B2 industrial sites in excess of 60,000 sq ft are rarely available and will appeal to users in search of larger factory spaces. Potential purchasers of the 4 Mandai factories can also explore options to redevelop BHL Factories with other owners within the development. BHL Factories has a site area of 80,287 sq ft and is zoned “Industrial (B2)”, with allowable plot ratio of 2.5 under the Master Plan 2019.
The EOI exercise for the 4 Mandai factories will close on 22 July 2021, Thursday, at 3pm.
Mr Paul Ho, chief officer at iCompareLoan, said: “Industrial property investors may be increasingly looking to industrial assets to satisfy more defensive strategies.”
On recent report said that in the last six months, industrial property investors have raised over US$7 billion targeting Asia Pacific logistics assets because throughout the pandemic, the industrial sector has maintained its defensive investment position and been more resilient to the impact than other sectors thanks to its operation criticality.
A recent Knight Frank Singapore’s research also suggests that industrial property investors may be increasingly looking to industrial assets to satisfy more defensive strategies.
Knight Frank on 18 September 2020, 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.”
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, analysed 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.”.
Ms Song added: “Overall, we are cautious about Singapore industrial market’s outlook for this year, and forecast the general industrial market to remain weak in 2020.”
“Throughout the pandemic, the industrial sector has maintained its defensive investment position and been more resilient to the impact than other sectors thanks to its operation criticality. But, really, COVID has just accelerated many of the longer-term secular trends that are supporting investment into the sector,” said Stuart Ross, Head of Industrial and Logistics, Southeast Asia, JLL.
“The inflow of capital has resulted in more complex transactions and greater participation by both established and new investors into the sector.”
Stuart Ross
