/ 5 5
C A M B R I D G E I N D U S T R I A L T R U S T
A N N U A L R E P O R T 2 0 1 5
SINGAPORE INDUSTRIAL PROPERTY MARKET OVERVIEW
Source: Various REITs, DTZ Consulting & Research, February 2016.
* Inclusive of JTC upfront land premium.
6 Based on transacted price and NLA. Figures have been rounded.
4.6
Key Investment Transactions
Table 4.2 highlights the major industrial investment transactions in 2015.
4.7
Outlook
While most manufacturing clusters in Singapore are expected to perform moderately due to weaker economic
prospects, outlook for the biomedical manufacturing industry is expected to be relatively optimistic. According
to the EDB’s Survey of Business Expectations of the Manufacturing Sector for Q1 2016, a net weighted balance of
17% of the firms anticipated a positive business outlook for the cluster. In particular, there are plans to introduce
new products in the pharmaceuticals segment and strong export demand in the medical technology segment.
In addition, the biomedical cluster saw healthy capital investments in 2015. For example, Japan’s Chugai
Pharmaceutical announced a $355 million investment by 2021 in July 2015 to increase its research and development
capabilities in Singapore.
Other sectors like the technology, media and telecommunications industry are also growing. More than 10 data
centres have been completed in the past five years, bringing the total to more than 50 as at end September 2015.
As Singapore gradually evolves into a regional hub, data centres are expected to grow, as evidenced by leading
companies’ expansion, such as Google’s data centre in Jurong which is scheduled to complete in 2020. This also
indicates foreign investors’ confidence in Singapore’s competitiveness over the medium-to-longer term.
Taking the overall weakness in manufacturing sector and potential supply into consideration, factory rents are
expected to ease in 2016. Landlords may need to exercise greater flexibility in rental negotiation to retain tenants.
Table 4.2: Major Investment Transactions (2015)
Development Address
Tenure
NLA
(Sq ft)
Vendor
Buyer
Transacted
Price
($million)
Unit Price
6
($ per Sq ft)
Starhub Green 67 Ubi
Ave 1
Balance lease
tenure of
80 years
405,386 Blackstone AEP Investment
Management
260
641
The Kendall
50 Science
Park Road
Balance lease
tenure of
64 years
181,094 Ascendas
Group
Ascendas
Real Estate
Investment
Trust (REIT)
112
618
BS Bendemeer
Centre
(formerly known
as Cyberhub)
20
Bendemeer
Road
Balance lease
tenure of
50 years
175,000 Cyberhub
Holdings
Pte Ltd
Individual
buyer
88
503
72 Loyang Way 72 Loyang
Way
Balance lease
tenure of
23 years
203,459
(GFA)
Technics
Oil and Gas
Limited
Soilbuild
Business Space
REIT
97*
477
Forte
29 New
Industrial
Road
Freehold 98,254 Ho Bee Land Laura Ashley
(Asia)
66
672
