JLL, the sole marketing agent, has put Ching Shine Industrial Building up for collective sale by tender with a minimum price of $113 million. Located at Shaw Road, the freehold building comprises 52 strata units and has a 100-meter frontage. It covers a total land area of 49,308 square feet and has a gross floor area of approximately 137,341 square feet.
The building, which was built in the early 1980s, is zoned as “Business 1” with a gross plot ratio of 2.5 under URA Master Plan 2019. According to JLL, more than 80% of the owners have agreed to the collective sale at the minimum price of $113 million. This price translates to a unit land rate of around $823 per square foot per plot ratio at the existing gross plot ratio of 2.79.
According to JLL, subject to approval from URA, the site could potentially be converted into a food factory. The National Environment Agency (NEA) has confirmed that the site meets the required buffer requirements for redevelopment into a multi-user factory, while the Singapore Food Agency has informed URA of their support for the proposed food factory.
Alternatively, the freehold asset could also present an attractive investment opportunity for long-term growth for family offices, as well as for owner-occupiers looking to establish a corporate presence, according to JLL.
Nicholas Ng, JLL’s senior director of capital markets, believes that the site will also appeal to developers due to the absence of additional buyer’s stamp duty, which can impact project timelines.
Ching Shine Industrial Building is accessible via major expressways such as the PIE, CTE and KPE. It is also within walking distance of the Tai Seng MRT Station on the Circle Line. It is located in the Tai Seng Industrial estate, close to other food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building. The area also offers amenities such as Grantral Mall @ Macpherson and 18 Tai Seng.
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In November 2023, another freehold Business 1 industrial building in the area, Noel Building at 50 Playfair Road, was sold en bloc for $81.18 million, 17% above its $70 million guide price. Ng believes that this transaction demonstrates the strong demand for such assets in the area and anticipates a similar competitive response for Ching Shine Industrial Building.
The tender for Ching Shine Industrial Building will close on April 3 at 3pm.