_Rare industrial property at 1 Jalan Lembah Kallang up for sale by private treaty
Knight Frank Singapore is the exclusive marketing agent for a rare city-fringe industrial property at 1 Jalan Lembah Kallang. The property is a detached factory that comprises a three-storey office building and a single-storey workshop. It is on a 99-year leasehold tenure with effect from 1 September 1964. The indicative guide price is S$7.5 million.
The subject property boasts immense redevelopment potential. Under the Urban Redevelopment Authority’s Master Plan 2019, the land is zoned Business 1 Industrial1, with an allowable Gross Plot Ratio of 2.5. Subject to approval from the relevant authorities, the site can be redeveloped into another industrial property with a total build up area of up to approximately 21,000 square feet (“sq ft”). The ground rent for the site is $1 per annum.
Conveniently located in the Kallang/Bendemeer area, the site of 1 Jalan Lembah Kallang sits on a land measuring approximately 8,475 sq ft with a gross floor area (“GFA”) of approximately 6,000 sq ft. The subject property is within a three-minute walk to Bendemeer Mass Rapid Transit (“MRT”) station and ten-minute walk to Boon Keng MRT station. It is also highly accessible via the Pan-Island Expressway, East Coast Parkway and Central Expressway. Light industrial, commercial and residential developments including the Luzerne Singapore, Hyflux Building, Continental Building, BS Bendemeer Centre and ARC 380 and other amenities are within the immediate vicinity of the subject property.
Mr Alvin Teng (邓圳求), Director, Industrial, Capital Markets, Knight Frank Singapore, said, “Highly accessible industrial land with redevelopment potential like these are rare and continue to be trophy assets for end-users. The long remaining land lease with a nominal land rent payable, coupled with an under-utilised plot ratio, provides for further upside. This is an excellent opportunity for corporations and industrialists looking to build up their customised corporate headquarters and/or facilities with high specifications in a sought-after location.”
Singapore’s Gross Domestic Product (GDP) is expected to expand between 3.0% to 5.0% in 2022, with the Ministry of Trade and Industry (MTI) projecting growth to fall within the lower half of the forecast range. GDP increased by 3.7% y-o-y thus far in the first three months of 2022, supported by the 7.1% y-o-y growth of the manufacturing sector. This was primarily led by strong output expansions within the electronics and precision engineering clusters in Q1 as global demand for semiconductors and semiconductor equipment remained robust.
Mr Daniel Ding (陈彦旭), Head of Capital Markets (Land & Building, International Real Estate & Industrial), Knight Frank Singapore, “Notwithstanding increasing global uncertainties, Singapore’s manufacturing sector remains a stable engine for economic growth for the remainder of 2022, translating to a resilient industrial real estate market. Considering that the listing is reasonably priced and poised for further value upside, we expect it to attract keen interest.”