Wednesday, March 27, 2013

Two floors in Geylang industrial building for sale

The Business Times  |  Mar 26, 2013

The seventh and eighth floors of One Sims Lane have been put up for sale by expressions of interest by Savills Singapore and Chesterton Suntec International.

One Sims Lane is a freehold Business 1 zoned development. The eight-storey building is located along Lorong 23 Geylang off Sims Avenue.

The two floors up for sale have strata floor areas of about 22,500 sq ft each, with a combined strata area of approximately 48,739 sq ft.

The building has ample parking on the ground and second floors, and is served by three passenger lifts and two goods lifts, as well as two loading bays. The floor plate is also designed for the efficient transfer of goods to the lifts.

Savills Singapore said that the building sits in a popular and compact industrial cluster and enjoys a strong labour supply from neighbouring residential districts.

The building is a five- minute walk from Aljunied MRT station, a 15-minute drive from the CBD, and a 20-minute drive from the airport, making it also fairly accessible.

Donald Goh, director of investment sales for Savills South East Asia, was positive about the demand for the property.

"Freehold Business 1 space in a central location and a generous floor plate of this size is very rare in the market. With its functional design and good specifications, the subject property will attract businesses related to research and development, construction, manufacturing, telecommunications, and trade exhibitors," he said.

He added: "End-users who require larger floor space due to business expansion will find the subject property ideal as they will be able to consolidate their operations all in one space.
"For end-users who are currently facing escalating rents, this opportunity presents them with a chance to own their premises, hedging against escalating business costs."

Mr Goh also pointed out the property's investment potential. "Investors can also look at recurrent income from the property which is presently fully tenanted. With the flexible layout, smaller units can be subdivided further to cater to various tenant needs.

"In the longer term, investors can potentially subdivide the titles to smaller formats and divest to end- users, subject to approval from relevant authorities," he said.

According to Savills Singapore, the current rental rates for the two floors are around $3 psf.
Savills Singapore declined to give the property an indicative price. It noted, however, that two other industrial properties in the area, Arcsphere and Atrix, were sold last year at $800- 900 psf.

The expressions of interest period ends at 4pm on April 26.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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