JLL, the sole marketing agent, has announced the collective sale of Ching Shine Industrial Building with a minimum price of $113 million. The freehold building includes 52 strata units and boasts a 100m frontage along Shaw Road. It has a total land area of 49,308 sq ft and a gross floor area of approximately 137,341 sq ft.
The building, which was built in the early 1980s, is zoned as “Business 1” and has a gross plot ratio of 2.5 under the URA Master Plan 2019. More than 80% of the owners have given their consent for the collective sale at the minimum price of $113 million. This translates to a unit land rate of around $823 psf per plot ratio at the existing gross plot ratio of 2.79.
According to JLL, the site could potentially be converted into a food factory, subject to URA approval. The National Environment Agency has already confirmed that the site meets the buffer requirements for redevelopment into a multi-user factory, and the Singapore Food Agency has given their in-principle non-objection to the proposed food factory.
Alternatively, the freehold building presents an investment opportunity for family offices looking for long-term growth or for owner-occupiers seeking to establish a corporate presence. For developers, the property is particularly attractive as it is exempt from the additional buyer’s stamp duty, which can impact project timelines.
The strategic location of the property, with easy access to major expressways such as PIE, CTE, and KPE, as well as its proximity to Tai Seng MRT Station, make it highly desirable. It is also situated in the popular Tai Seng Industrial Estate, surrounded by food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building. Amenities such as Grantral Mall @ Macpherson and 18 Tai Seng are also within walking distance.
In November 2023, another freehold Business 1 industrial building, Noel Building, located at 50 Playfair Road, was sold en bloc for $81.18 million, which is 17% above its $70 million guide price. This transaction further reinforces the strong demand for such assets in the area. Nicholas Ng, senior director of capital markets at JLL Singapore, expects a similarly competitive response for Ching Shine Industrial Building.
When looking into investing in a condo, it is crucial to also evaluate its potential for rental income. Rental yield, which is the annual rental income as a percentage of the condo’s purchase price, is a key factor to consider. In Singapore, the rental yields for condos can vary significantly depending on factors such as location, property condition, and market demand. Generally, areas with a high demand for rentals, such as those near business districts or educational institutions, tend to offer higher rental yields. It is essential to conduct thorough market research and seek advice from real estate agents to gain valuable insights into the rental potential of a specific condo. Additionally, you can also visit websites like Condo for more information on condo investments.
The tender for Ching Shine Industrial Building will close on April 3 at 3pm.