_Successful brokerage of sale and purchase of J'Forte Building for almost S$100 million
Knight Frank Singapore is pleased to announce its successful brokerage of the sale and purchase of J’Forte Building, a food manufacturing facility, at 26 Tai Seng Street. The eight-storey development, which comes with a basement carpark, houses popular restaurant business Suki Sushi’s headquarters, eateries, central kitchen and a cold storage warehouse. Boustead Industrial Fund, has acquired the asset in a sale and leaseback deal for almost S$100 million. The transaction is subject to the approval from government landlord Jurong Town Corporation (JTC) and other relevant authorities.
Under the Urban Redevelopment Authority’s Master Plan 2019, the site measures approximately 70,926 square feet (sq ft) and is zoned Business 2 (B2)-White1, with an allowable Gross Plot Ratio of 3.52. The gross floor area of the development measures 193,012 sq ft, including 177,335 sq ft of B2 space and 15,677 sq ft of white use space. Its original land tenure comes with 30+30 years from 9 June 2007, with approximately 44 years’ lease remaining.
Mr Daniel Ding (陈彦旭), Head of Capital Markets (Land & Building, International Real Estate), Knight Frank Singapore, said, “Food factories located in convenient sites like these, especially in Tai Seng, are scarce in the market and highly sought after by investors and end-users. Additionally, as the development’s current gross plot ratio has not been maxed out, the new owner could potentially expand its floor area to increase efficiency. Given the land’s relatively long tenure, it allows for investment stability for investors as well as long-term planning for occupiers for their respective businesses.”
The subject property, being strategically located in the Paya Lebar i-Park at Tai Seng, is expected to potentially benefit from the future redevelopment in the area. The property is conveniently situated within a cluster of amenities such as of retail mall/shops and F&B and entertainment outlets. It is a short drive to Paya Lebar Quarter and connected to the rest of the island through major roads such as Upper Paya Lebar Road, Airport Road and Bartley Road East. It is also easily accessible via Expressways such Pan Island Expressway (PIE), Kallang Paya Lebar Expressway (KPE) and Central Expressway (CTE). The subject property also enjoys excellent public transport connectivity as it is connected directly to Tai Seng Mass Rapid Transit station and within walking distance to a few bus stops.
Mr Ding added, “In the longer term, this area will be transformed into a highly liveable and sustainable new town especially after Paya Lebar Air Base moves away from 2030 onwards. The lifting of height restrictions around the air base will also allow better optimisation of land and rejuvenate the surrounding areas. Almost 800 hectares of land will be freed up and redeveloped into a new and green live-work-play town.”
“On a macro-level, global events such as the Russia-Ukraine war and the COVID-19 pandemic have put a spotlight on food security and the importance of food sustainability. Rising demand for food-delivery services and the need of F&B operators to streamline their retail space in Singapore will also contribute to the demand for food factories here. In support of our nation’s goal to achieve “30 by 30” to produce 30 per cent of the country’s nutritional needs by 2030, we can expect a healthy demand for food factories to meet this requirement.”
For further information, please contact:
Daniel Ding, Executive Director, Head, Capital Markets
(Land & Building, International Real Estate) Knight Frank Singapore
(E) daniel.ding@sg.knightfrank.com (D) +65 6228 6833 (M) +65 9336 3962
Lilian Hoe, Deputy Director, Communications & Compliance, Knight Frank Singapore
(E) lilian.hoe@sg.knightfrank.com (D) +65 6228 6807
Jane Sng, Assistant Manager, Communications & Compliance, Knight Frank Singapore
(E) jane.sng@sg.knightfrank.com (D) +65 6228 6827