A rendering of the proposed nine-storey food facility at Kallang Way (Image: CapitaLand)
CapitaLand Development made the top bid of S$368.9 million ($284.5 million) for a development site in Singapore’s Kolam Ayer industrial estate, with the builder’s proposed project to serve food-related end-users.
The 44,107 square metre (474,764 square foot) parcel at Kallang Way in the Macpherson area was made available in June with a 32-year tenure as part of the Singapore government’s biggest rollout of industrial land for sale in a decade.
The envisioned nine-storey food facility will be designed with 40-footer container ramp-up access and unit configurations with flexibility for expansion, the unlisted development arm of Singaporean property giant CapitaLand said Wednesday in a release.
“CapitaLand has a strong development track record that includes food and industrial properties in Singapore,” said CapitaLand Development Singapore CEO Tan Yew Chin. “The group has developed more than 530,000 square metres of industrial spaces for sale.”
Partnering With Fraxtor
The developer said it joined with “like-minded capital partners” on the land tender, including an affiliate of real estate investment platform operator Fraxtor Group.
CapitaLand Development Singapore CEO Tan Yew Chin (Image: CapitaLand)
The planned facility will serve food-related end-users — including manufacturers, caterers and central kitchen operators — and will contain more than 1,000 square metres of retail space. The site enjoys proximity to the Pan Island Expressway and the Aljunied, Geylang Bahru, Macpherson and Mattar MRT stations, according to CapitaLand Development.
“The strong connectivity and accessibility to and from other parts of Singapore will benefit end-users in their business operations,” the developer said. “This includes logistics and deliveries across all parts of the island, as well as worker and visitor access.”
The project aims to retain the distinctive design of the existing structure via the adaptive reuse of the last remaining three-storey terrace showroom factory cluster dating to the 1980s.
Jurong Town Corporation, which regulates industrial properties in the city-state, will weigh CapitaLand Development’s offer for Kallang Way — one of four bids received, the lowest being S$223.2 million — before deciding whether to award the tender.
Media Circle Unawarded
On Thursday, the Urban Redevelopment Authority awarded no tender for the Media Circle residential plot in western Singapore after receiving a sole bid of S$120 million ($92.5 million) from Frasers Property.
“The tender has not been awarded as the sole bid is assessed to be too low,” the URA said in a release.
The Media Circle plot can potentially yield 520 apartments. The site within the One-North R&D hub in the Queenstown area requires that developers make the units available for lease as serviced residences with a minimum stay of three months.
Frasers Property’s bid of S$461 per square foot of gross floor area was below the S$850 to S$1,000 anticipated by PropNex when the URA released the site in May. The agency had predicted one or two bids from developers with hospitality experience and a top bid between S$222 million and S$261 million.
Huttons Asia noted Thursday that of the three sites made available so far with a long-term serviced apartment component, known as SA2 for short, only a single Zion Road plot has been awarded, to a joint venture of City Developments Ltd and Mitsui Fudosan in April.
“This could be due to the attractive location which balances the risks of building SA2,” said Huttons Asia CEO Mark Yip.
In contrast, the Media Circle site lies in a dense business area with no nearby mass transit links, PropNex observed in May.
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