Ravi Chandran
Space@Tampines is an opportune investment given the e-commerce boom which is reshaping the logistics sector
CBRE, as the exclusive marketing agent, is launching Space@Tampines, a joint development by mainboard-listed firms, Oxley Holdings Limited and Lian Beng Group Ltd, for sale via an expression of interest exercise.
Located at 18 Tampines Industrial Crescent, Space@Tampines is an integrated seven-storey ramp-up e-commerce and logistics development comprising 24 showroom units and a food court on the ground level, and 59 units from levels two to seven that are suited for warehousing and businesses in e-commerce, and clean and light industries. The development sits on a 417,645 square foot site that is zoned for “Business 2” use and offers a total gross floor area of approximately 709,263 square feet.
The guide price for Space@Tampines ranges from $170 million to $190 million.
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Prominently situated at the junction of Tampines Expressway and Tampines Avenue 10, Space@Tampines enjoys high visibility and is the focal point of a retail, industrial and residential hub. It is within walking distance to IKEA Tampines, COURTS Megastore and Giant Hypermarket, and is also a short drive from Tampines Regional Centre and Pasir Ris Town.
Mr Rimon Ambarchi, Executive Director of Industrial and Logistics Services at CBRE, said, “This is a secure and high yielding investment opportunity for investors. The property is strategically sited in the center of five major residential estates boasting a population of more than 1.1 million.”
“This catchment, along with Singapore’s continued e-commerce boom which is set to grow 2.8 times in the next 5 years, will amplify Space@Tampines’ position as an ideal last mile solution. The location is also expected to receive a boost from the draft Master Plan 2019 which has identified the relocation of the Paya Lebar Air Base, progressively transforming the area into a highly livable and sustainable new town.”
The expression of interest for Space@Tampines closes on 30 August 2019 at 12 pm.
Space@Tampines is a 3-storey and 7-storey ramp-up B2 Clean industrial development built on 30-year leasehold land. The property comprises 71 warehouse units and 1 canteen with an approximate Gross Floor Area (GFA) of 65,893 sqm. Space@Tampines is located at 18 Tampines Industrial Crescent at the intersection of Tampines Expressway (TPE) and Tampines Avenue 10 and is close to Changi, Loyang, Tampines and Seletar Industrial Estates.
This ramp up property provides the ideal business space solution for companies under the category of Clean & Light and B2 Industries. Obtaining its TOP in June 2015, Space@Tampines is currently 91% leased out with LHN Space Resources Pte Ltd occupying the second to seventh floors under a master lease of the 7-storey block and furnishings tenants on the ground floor.
TYPE OF DEVELOPMENT
Industrial
TENURE
30 years leasehold
LAND AREA (SQ M)
38,800
GROSS FLOOR AREA (SQ M)
65,893
WAREHOUSE UNITS
71
An earlier report by ZACD said that despite the impressive growth of e-commerce industry in recent years, it did not always result in a corresponding increase in demand for warehouse spaceThe report said this is because in the e-commerce industry, the majority of the companies do not require significant warehouse space. Furthermore, some of the items bought through e-commerce are shipped directly from the foreign vendors to the Singapore customers and would only occupy local warehouse storage briefly.
ZACD acknowledged that the demand for warehouses does not depend solely on e-commerce, and that there are many other industries that utilize warehouse space in Singapore. In examining the warehouse space sector over the past 20 years, the ZACD research said that the total warehouse space stock has doubled from 4.9 million sqm in 1998 to over 10.7 million sqm in 2018. The stock of warehouses increased at the fastest rate from 2013 to 2017, when there were plans for Singapore to be a regional logistics hub.
The ZACD research noted that although e-commerce in Singapore continued to be popular in 2018, the net absorption of warehouse space actually fell 66.4 per cent from 800,100 sqm in 2017 to 269,000 sqm in the following year. This, the report said, indicated that the demand for warehouse space corresponded more with new supply rather than e-commerce.
Mr Paul Ho, chief mortgage officer at iCompareLoan, commenting on the topic noted, “warehouse rents improved from the previous quarter and this is the first rental uptick in 16 quarters.”
He added, “one research noted that there has been significant improvement in demand for warehouse space compared to six months ago, but supply is expected to slow down over the rest of 2019. But warehouse vacancy rate remains high, so we should anticipate rents to remain soft for the rest of this year.”
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