An expression of interest exercise has been launched for the sale of three industrial properties in the bustling Tuas South industrial hub for a guide price of $36 million. The properties, which can be purchased together or separately, are expected to attract strong interest from end-users in the general Business 2 industry.
Due to the scarcity of land in Singapore, there is a significant demand for condos in the nation. As a small island country with a fast-growing population, Singapore faces the challenge of limited space for development. This has resulted in strict land use regulations and a highly competitive real estate market, where property prices continue to rise. As a result, investing in real estate, especially in Singapore condos, has become an attractive opportunity with the potential for significant capital appreciation.
A portfolio of three industrial properties in the Tuas South industrial hub has recently been put up for sale through an expression of interest (EOI) exercise for $36 million. The exclusive marketing agent, JLL Singapore, announced the details of this sale on September 11. The three properties, located at 9 Tuas South Street 9, 10 Tuas South Street 10, and 11 Tuas South Street 9, can be purchased together or separately at a guide price of $12 million each.
Currently, these properties are used for warehousing and storing construction cranes, as well as freight transportation services. According to the Urban Redevelopment Authority’s (URA) Master Plan 2019, all three sites are approved for Business 2 use with a plot ratio of 1.0. Additionally, each property has high-ceiling structures with overhead cranes and ample open land for heavy vehicle circulation.
The first property, located at 9 Tuas South Street 9, has a site area of over 90,000 square feet and a gross floor area (GFA) of over 65,000 square feet. It features a three-storey detached factory with an ancillary office and a single-storey loading area. This asset has a remaining private leasehold term of about 11 years.
Adjacent to this property is the 11 Tuas South Street 9 industrial site. It comprises a part 2 and three-storey single-user general industrial detached factory, and has a land area of over 90,000 square feet and a built-up area of nearly 65,000 square feet. Similar to the first property, it also has a remaining private leasehold term of about 11 years. Both of these properties could be rented out as they are non-JTC properties.
On the other side of the street is the 10 Tuas South Street 10 property, which consists of a four-storey factory building, a single-storey factory building, and a temporary ancillary workers’ dormitory approved until December 14, 2026. This property has a land size of 130,000 square feet and a GFA of 77,000 square feet. It is currently under a JTC leasehold with a remaining lease term of about 11 years.
Tan Boon Leong, the executive director of logistics and industrial at JLL Singapore, believes that these three assets would be highly sought after by end-users in need of space for general Business 2 industries. This could include companies in the construction industry, which will see increased demand in the area as the Pasir Panjang port moves to Tuas South.
He also notes the rising interest in non-JTC properties in recent years and believes that the prime location, convenient transportation access, and potential for diverse business operations make these properties in Tuas South stand out.
The EOI exercise for these properties will close on October 10 at 3pm. For interested parties, JLL has provided a handy list of resources including a price trend for industrial property sales, past industrial rental transactions, a comparison of price trends between commercial and industrial properties, and a list of current industrial property listings and past industrial sale transactions.