Using an expression of interest (EOI), City Developments Ltd: C09 +0.95% is selling off a portfolio of 62 freehold strata industrial units in the Citilink Warehouse Complex.
Properties like Dunman Grand and Dunman Grand Balance Unit Chart are listed at an approximate price of S$103 million, or around S$997 per square foot of available stratum space.
Block 102E has 62 apartments with floor plans ranging in size from 947.2 square feet (sq ft) to 2,884.7 sq ft, for a total stratum area of about 103,301 sq ft. Cushman & Wakefield, the complex’s sole marketing agency, said on Thursday (April 20) that the apartments accounted for around 34% of the development.
To the west of the PSA Pasir Panjang Terminals is the twin-building, eight-story Citilink Warehouse Complex. It has many tenants and is located in the “Business 1” zone of the Urban Redevelopment Authority’s Master Plan for 2019.
According to CDL’s 2022 annual report, the company’s industrial portfolio includes 62 of the 180 strata-titled apartments at Citilink. The Business Times has learned that these same flats are available for sale.
In its interim results for the half-year ended June 30, 2022, CDL reported a gain of S$27.3 million from the sale of its Tagore 23 Warehouse, a freehold warehouse in Tagore Lane.
According to Shaun Poh, executive director of capital markets at Cushman & Wakefield, the future redevelopment potential of the Citilink sites may be bolstered by the redevelopment of the present ports into the future Greater Southern Waterfront and its transformative influence.
“The potential buyer also enjoys the flexibility to exit the investment via bulk and/or individual strata sale,” he said.
The deadline to submit an EOI for the property is May 25 at 3 p.m.
According to a Colliers report from April 19th, 20.2% of investment sales in the first quarter of this year were in the industrial sector, with S$80.8 million worth of industrial properties changing hands.
According to a study published by Knight Frank on April 10th, even though industrial sales dropped 11.6% quarter on quarter during the first quarter of this year, some significant transactions were still sealed, including the sale of four sites by Cycle & Carriage to M&G Real Estate for S$333 million.
There was a slowdown in leasing activity, with the number of leases for multi-tenant factories on the whole island dropping by 1.5% between the first and second quarters of 2018 and 2017 to 1,548.
According to CBRE research from April 13th, the industrial leasing market showed strong progress in the first quarter of 2023. Renewals in industries including electronics, wholesaling, and healthcare drove business deals.
Average warehouse and factory rents increased by 2.8% and 1.8% quarter over quarter, respectively, as the industrial market continues to show broad-based growth across all categories, as reported by CBRE.
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