Ching Shine Industrial Building, a freehold property with a prime location along Shaw Road, has been put up for collective sale with a minimum price of $113 million by sole marketing agent JLL. The building, built in the early 1980s, comprises of 52 strata units and boasts a 100m frontage along Shaw Road. The total land area of the site measures 49,308 sq ft and has a gross floor area of approximately 137,341 sq ft.
Under the URA Master Plan 2019, the building is zoned “Business 1” with a gross plot ratio of 2.5. Over 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.
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According to JLL, subject to URA approval, the site can potentially be converted into a food factory. The National Environment Agency (NEA) has confirmed that the site meets the buffer requirements for redevelopment into a multi-user factory. The Singapore Food Agency has also given an in-principle non-objection to the proposed food factory.
Alternatively, the freehold asset presents a potential investment opportunity for family offices seeking long-term growth, or owner-occupiers looking to establish a corporate presence. Nicholas Ng, senior director of capital markets at JLL Singapore, also believes that the site would appeal to developers, given the absence of additional buyer’s stamp duty that can impact project timelines.
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. Located in the bustling Tai Seng Industrial estate, the property is surrounded by food factories such as Breadtalk IHQ, Sakae Building, and Food Empire Building. The area also boasts amenities such as Grantral Mall @ Macpherson and 18 Tai Seng.
In November 2023, a freehold Business 1 industrial building at 50 Playfair Road, Noel Building, was sold en bloc for $81.18 million, 17% above its $70 million guide price. Ng sees this transaction as a demonstration of the “fervent demand” for similar assets in the area. 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.