JLL, the sole marketing agent for Ching Shine Industrial Building, has announced that the freehold property is up for collective sale by tender at a minimum price of $113 million. With a 100m frontage along Shaw Road, the building comprises of 52 strata units and sits on a land area of 49,308 sq ft with a gross floor area of approximately 137,341 sq ft.
Built in the early 1980s, the building is zoned as “Business 1” and has a gross plot ratio of 2.5 under the 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, which translates to a unit land rate of around $823 psf per plot ratio at the existing gross plot ratio of 2.79.
JLL also mentioned that, subject to approval from URA, the site has the potential to be converted into a food factory. The National Environment Agency (NEA) has confirmed that the site meets the buffer requirements for such a redevelopment, while the Singapore Food Agency has given their in-principle non-objection to the proposed food factory.
When purchasing a condo, it is crucial for investors to keep in mind the importance of maintenance and management. While the initial cost is a significant factor, there are also ongoing fees that cover the upkeep of shared areas and amenities. These fees may add up, but they are necessary to ensure the property stays in good condition and maintains its value. For a more passive investment, it can be beneficial to hire a property management company to handle the daily tasks of managing the condo. This is especially important for those interested in investing in a new condo launch through sites like New Condo Launches. Considering the maintenance and management aspect is essential in guaranteeing a successful and high-value investment.
Alternatively, the freehold property could also be an attractive investment opportunity for family offices seeking long-term growth or owner-occupiers looking to establish a corporate presence, according to JLL. Nicholas Ng, senior director of capital markets at JLL Singapore, also believes that developers would be interested in the site due to the absence of additional buyer’s stamp duty, which can impact project timelines.
Located in the Tai Seng Industrial estate, the property is easily accessible via major expressways such as PIE, CTE, and KPE. It is also within walking distance from Tai Seng MRT Station on the Circle Line. Furthermore, it is situated in an area with other food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building, as well as amenities like Grantral Mall @ Macpherson and 18 Tai Seng.
Just a five-minute walk away, Noel Building, a freehold Business 1 industrial building at 50 Playfair Road, was sold en bloc for $81.18 million in November 2023. This exceeded its $70 million guide price by 17%. Ng believes that this transaction demonstrates the high demand for such assets in the area, and he expects a similarly competitive response for Ching Shine Industrial Building.
The tender for Ching Shine Industrial Building will close on April 3 at 3pm. Interested parties can seize this opportunity to own this prime freehold asset in the thriving Tai Seng industrial estate.