Century Warehouse located along the Pasir Panjang Road has been launched for collective sale at asking price of S$57 million.
The en bloc sale of this freehold industrial warehouse should attract multiple bids thanks to its advantageous location.
As per the asking price interested developers would have to pay S$750 psf ppr to acquire this site.
If the collective sale materializes Tuan Sing one of the leading property developers could earn between S$50 million and S$51 million from this collective sale.
The listed company is major owner at this warehouse owning 31 out of the 35 strata units which is nearly 90% of the total strata area.
This was revealed by Head of Assets and Fund Management at Tuan Sing Mr Patrick Tan.
According to Mr Tan this sale is part of a strategic process where the company plans to raise capital by selling off non-core assets and investing the same on its core assets which are residential and commercial sites.
According to him the site thanks to its location and freehold status which is rare would appeal to potential developers.
The site presently houses an eight-storey building with a carpark at the basement. It has been categorized B1 which allows for clean and light industrial use.
The freehold site has a maximum allowable 2.5 plot ratio and encompasses an area of 30,402 sq ft with its existing strata size of 56,539 sq ft.
Century Warehouse currently has several industrial developments in the vicinity including OC @ Pasir Panjang, Mapletree Business City and Interlocal Centre.
Executive Director and Head of Industrial at Knight Frank Singapore, Tan Boon Leong sees this as an attractive investment as there is 100% consensus among the owners which include small owners apart from Tuan Sing.
They have all agreed to sell and this can pull investors easily. Ian Loh, who is Head of investment and Capital Markets agreed with his colleague stating that this a great investment opportunity for developers, owner occupiers as well as funds. Given the location which is merely 10-minute drive from the Central Business District.
Last year another freehold industrial site Citimac Building was acquired by a foreign investor for S$430.1 million which translated to S$1,047 psf ppr. This site was in vicinity of the Tai Seng MRT Station.
The tender for this site shall close on 30th of November.
The site was picked up by Shun Tak Holdings which is listed in Hong Kong for S$375 million translating to a record price of S$2,910 psf ppr for a collective sale.
There was 100% consensus among the owners for this sale. Interestingly the contract for this site was signed on the 1st of June and it is one among the few sites that were awarded before the cooling measures were announced in July which have dented spirits in the collective sale market.
CBRE has brokered this site and the owners had hired Rajah & Tann Singapore as the law firm for the sale.