August 24, 2012
A subsidiary of Fong Tat Group has acquired a freehold industrial property at Sims Drive for SGD 43 million, below the initial asking price of SGD 48 to 50 million.
A Sims Drive factory failed to achieve its target selling price of SGD 48 to 50 million. Instead, the property, located near the junction of Sims Drive and Geylong Lorong 17, was acquired by a subsidiary of Fong Tat Group at SGD 43.18 million.
The property spans a site of 34,912.7 sq ft, and carries a gross plot ratio of 2.5. This means that the selling price translates to SGD 495 psf ppr. This was below the indicative price of between SGD 550 psf ppr and SGD 573 psf ppr set during the property's launch through collective sale last month.
The sale was managed by appointed marketing agent HSR, which noted that industrial property prices had been on an upwards trend. Jeffrey Goh, head of investment sales, said that there was an increase in industrial property prices of 7.3% in Q1 and an even higher increase of 8.4% in Q2.
"Barring any unforeseen circumstances, this attractive price growth looks set to continue for some time because freehold industrial properties are a much sought-after asset class for companies and investors switching their investments into the industrial sector."
Tags: Industrial property, Warehouse for sale, Commercial real estate
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