Tong Lee Building En Bloc Sale 2024 – Freehold D13

Tong Lee Building Hits the Market with S$410 Million Collective Sale in Prime Industrial Sector

The highly anticipated collective sale of Tong Lee Building, a prime freehold industrial property located at 35/37 Kallang Pudding Road in District 13, has officially been announced, with the tender set to open this Tuesday.

Positioned as a strategic investment opportunity, the property boasts a guide price of S$410 million, as revealed by Strata AMC, the marketing agent overseeing the sale.

With its significant land rate of S$769 per square foot per plot ratio, based on a substantial gross floor area of 49,486 square meters, Tong Lee Building represents a rare find in Singapore’s tightly held industrial real estate market.

The property currently features two multi-storey towers and falls under the “Business 1” zoning category according to the Urban Redevelopment Authority’s Master Plan 2019, earmarked primarily for clean and light industry use.

Bern Chen, key executive officer at Strata AMC, highlighted the building’s exceptional location and redevelopment potential as key factors that make it an appealing asset for foreign investors looking to cement their footprint in Singapore.

Notably, potential buyers will benefit from the absence of additional buyer stamp duty, which is applicable only to residential acquisitions, thereby enhancing the property’s attractiveness in the commercial and industrial segments.

This sale comes at a time when Singapore’s industrial rental market is witnessing robust growth, driven by increasing demand across various sectors.

Data from the Jurong Town Corporation (JTC) for Q4 2023 indicates a 1.7% quarter-on-quarter and an 8.9% year-on-year rise in industrial space rentals, with the multiple-user factory segment experiencing a notable 10.7% year-on-year increase.

Furthermore, the price index for all industrial spaces has seen a steady climb, reinforcing the sector’s vitality and resilience.

Spanning a land area of 11,678 square meters, Tong Lee Building accommodates 189 units with a total strata area of 38,482 square meters, complemented by 175 car park lots and 14 lorry parking spaces, underlining the property’s readiness to support a wide range of industrial operations.

The collective sale tender for Tong Lee Building is set to close on May 23, presenting a timely investment opportunity for those looking to leverage the upward trajectory of Singapore’s industrial property market.

This sale not only underscores the continuing demand for premium industrial spaces but also represents a pivotal moment for the redevelopment of prime assets in one of Singapore’s key industrial districts.

Singapore’s Commercial Real Estate Booms: Seletar Mall and OneTen Paya Lebar Lead the Charge

The recent sales of Seletar Mall and OneTen Paya Lebar mark a significant uptrend in Singapore’s commercial real estate market, showcasing a strong interest in strategic commercial investments.

These noteworthy transactions not only demonstrate the sector’s resilience but also highlight the enduring allure of commercial investment in the city-state.

Seletar Mall, nestled in the suburban Seletar area, has emerged as a key destination for those seeking a rich retail experience beyond the bustling city center.

Its advantageous location and varied tenant roster enhance its attractiveness to investors.

Similarly, OneTen Paya Lebar stands out in a vibrant commercial district, epitomizing the success of mixed-use developments by merging retail and office spaces seamlessly.

Together, these properties underscore the lucrative investment potential within Singapore’s commercial real estate landscape.

Reasons Behind the Surge in Singapore’s Commercial Investment Popularity

Commercial investment in Singapore is highly appealing due to its stable and growing economy, bolstered by strategic policies and a robust legal framework that instills investor confidence.

The country’s prime location as a regional hub enhances the value of properties like Seletar Mall and OneTen Paya Lebar, benefiting from extensive connectivity and drawing significant business and consumer interest.

Singapore’s diverse commercial ecosystem, ranging from retail malls to mixed-use developments, caters to a broad spectrum of investment strategies and market needs.

The persistent demand for retail and office spaces, combined with government initiatives aimed at commercial sector growth and the resilience of Singapore’s real estate market to global fluctuations, further elevates its attractiveness.

Additionally, the growing trend towards mixed-use developments offers comprehensive solutions that address various needs, making commercial investments in Singapore highly desirable.

Tong Lee Building: A Prime Industrial Hub with Strategic Advantages and Amenities

Nestled in the bustling industrial sector of Kallang Pudding Road, Tong Lee Building stands as a testament to Singapore’s thriving industrial landscape.

This prime freehold property, poised for a collective sale at S$410 million, offers a plethora of strategic advantages and access to a wide array of amenities, making it an attractive proposition for investors and businesses alike.

Strategic Location for Business Expansion: Tong Lee Building’s location in District 13 places it at the heart of Singapore’s industrial sector, offering unmatched connectivity to major transportation networks. Its proximity to the Pan Island Expressway (PIE) and Kallang-Paya Lebar Expressway (KPE) ensures easy access to the rest of Singapore, facilitating efficient logistics and operations for businesses housed within.
Proximity to Commercial Hubs: Kallang Pudding Road is surrounded by a vibrant mix of commercial and industrial hubs, including the bustling areas of MacPherson and Aljunied. This proximity allows businesses in Tong Lee Building to leverage the commercial synergies and networking opportunities available, fostering growth and collaboration within the industry.
Amenities for Workforce Convenience: The area around Tong Lee Building is equipped with a variety of amenities that cater to the needs of the workforce. From local eateries and cafes offering diverse dining options to retail outlets and service providers, employees have convenient access to essential services, enhancing their work-life balance.
Access to a Skilled Labor Pool: Situated near several residential neighborhoods, Tong Lee Building benefits from access to a vast pool of skilled labor, essential for businesses operating within its premises. This accessibility to talent is a critical factor for companies looking to innovate and expand their operations.
Recreational Spaces for Employee Well-being: The vicinity of Tong Lee Building is home to several parks and recreational spaces, including the Aljunied Park and the Pelton Canal Park Connector. These green spaces provide employees with avenues for relaxation and recreation, promoting a healthy and balanced lifestyle.
Potential for Redevelopment and Growth: With a gross plot ratio of 4.24 and zoned for “Business 1” use under the URA’s Master Plan 2019, Tong Lee Building presents immense potential for redevelopment into a modern industrial complex. The site’s eligibility for clean and light industry use after the sale, coupled with its expansive gross floor area, positions it as an ideal location for businesses focusing on technology, R&D, light manufacturing, and other clean industries. This redevelopment potential offers a unique opportunity for investors to craft a landmark development that meets the evolving needs of Singapore’s industrial sector.

A Hub of Economic Activity

The strategic positioning of Tong Lee Building within the dynamic Kallang Pudding Road area, known for its concentration of industrial and commercial activities, ensures that businesses operating here are at the nexus of Singapore’s economic growth.

The area’s ongoing development and urban renewal efforts further enhance its attractiveness as a location primed for investment and business success.

Tong Lee Building’s strategic location, combined with the wealth of nearby amenities and its significant redevelopment potential, make it an outstanding opportunity for those looking to invest in or relocate to Singapore’s vibrant industrial landscape.

Its proximity to essential services, recreational facilities, and a skilled workforce, alongside the advantages offered by its strategic location, underscores the property’s value proposition as a cornerstone for industrial growth and innovation.