Two warehouse buildings in Tampines up for sale, asking $70m

TWO adjacent multi-storey warehouse buildings in Tampines have been put up for sale through an expression of interest exercise.

21 Tampines Street 92 is a six-storey warehouse, and 23 Tampines Street 92, an eight-storey warehouse with over 200 covered parking lots.

The properties can be bought jointly or separately, said exclusive marketing agent Cushman & Wakefield in a statement.

The properties are within the high-rise residential enclave of Tampines and Simei, and enjoy visibility from the Pan-Island Expressway (PIE).

They are near the upcoming Tampines West MRT Station on Downtown Line 3, which is expected to be completed in 2017 and will connect the residential estates of Tampines to the central business district and Marina Bay Financial Centre.

Both are zoned "Business 2" (meaning for heavy industrial use), with a plot ratio of 1.4. They have a balance lease tenure of 22 years left.

21 Tampines Street 92 sits on a land area of 119,091 square feet with a gross floor area of 164,967 sq ft. It is occupied by the owners as a furniture showroom and warehouse.

Shaun Poh, executive director of capital markets at Cushman & Wakefield, said that it would be ideal for end-users such as e-commerce and logistics companies that want to operate from their own buildings with a good corporate image, given the modern building architecture.

23 Tampines Street 92 has a land area of 95,788 sq ft, and gross floor area of 132,835 sq ft. It is leased to StorHub and Best Denki.

Both buildings are sitting on private land and hence are not subject to rules imposed by JTC or HDB. In contrast, those in the immediate vicinity are mostly on HDB leases.

The combined indicative price is about S$70 million, with the owner open to selling as is, or with a sale-and-leaseback arrangement.

The two developments will be ideal for self-storage business, Mr Poh said. Substantial parts in both buildings are already equipped with self-storage facilities.

In the third quarter, the warehouse sector saw an occupancy level of 92.5 per cent, up 2.1 percentage points year on year. But rentals fell 1.9 per cent from the previous year.

"Most of the new warehouse supply is concentrated in the West region with only 15 per cent in the East region," Mr Poh said.

"Singapore is increasing in importance as a regional logistics hub and the rapid growth of air freight due to consumers' growing preference for express delivery will support sustainable demand for warehouses in the East region in the long term.

"In addition, in view of the several data centre facilities already in operation nearby, conversion of the subject properties into data centres could be possible."

The expression of interest exercise will close on Dec 4 at 3pm.

This article was first published on October 29, 2015.
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