Ching Shine Industrial Building, a freehold property located along Shaw Road, has recently been put up for collective sale through tender by sole marketing agent JLL. The minimum price for the building has been set at $113 million.
The building, which was built in the early 1980s, comprises of 52 strata units with a 100m frontage along Shaw Road. It sits on a total land area of 49,308 sq ft and has a gross floor area of approximately 137,341 sq ft. Under URA Master Plan 2019, the building is zoned as “Business 1” with a gross plot ratio of 2.5.
According to JLL, 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.
The site has the potential to be converted into a food factory, subject to URA approval. JLL has confirmed that the National Environment Agency (NEA) has given the green light for redevelopment into a multi-user factory, while the Singapore Food Agency has in-principle non-objection to the proposed food factory.
Alternatively, the freehold property could also be an attractive investment opportunity for family offices looking for long-term growth or owner-occupiers seeking to establish a corporate presence. According to Nicholas Ng, senior director of capital markets at JLL Singapore, the absence of additional buyer’s stamp duty makes it even more appealing to developers, as it would not affect project timelines.
The location of the property is easily accessible via major expressways such as the PIE, CTE and KPE. It is also within walking distance from Tai Seng MRT Station on the Circle Line. The Tai Seng Industrial estate is home to various food factories, including Breadtalk IHQ, Sakae Building, and Food Empire Building, with amenities such as Grantral Mall @ Macpherson and 18 Tai Seng nearby.
In November 2023, Noel Building, a freehold Business 1 industrial building located at 50 Playfair Road, was sold en bloc for $81.18 million, 17% above its $70 million guide price. Ng believes this transaction reflects the strong demand for such assets in the area and expects a similarly competitive response for Ching Shine Industrial Building.
The tender for Ching Shine Industrial Building closes on April 3 at 3pm.