The transaction is noted for having no development charge, which reportedly involves CDL, Hong Leong Group and BS Capital.
Market talk indicates that a freehold industrial site in Kranji has been sold for SGD 240 million with no development charge. City Developments Ltd (CDL) and an unlisted sister company of Hong Leong Group is said have closed a deal with a party connected to BS Capital.
The transaction price represents a rate of SGD 205 psf for the site, which is a 500,000 sq ft industrial plot that is currently leased as an open-yard storage area. Market watchers noted that the large-sized industrial plot is rarely found on the Singapore market.
The plot is located off Kranji Road, along Jalan Lam Huat and close to the Kranji SMRT depot as well as the Kranji Industrial Estate. Its lease will expire in a year.
The plot is zoned for Business 2 uses, meaning that it may be used for warehousing, utility, general industry, light industry or telecommunications. The new owners are expected to redevelop it into a landed factories and strata industrial facilities hub.