/ 5 9
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.
* Price for property at 30 Pioneer Road excludes upfront land premium for the balance of 30-year lease, which is estimated at $6.1m.
5.6
Key Investment Transactions
Selected key investment transactions for warehouses in 2015 are summarized in Table 5.2.
5.7
Outlook
In line with the moderate outlook of the manufacturing sector, demand for traditional storage and distribution
facilities is expected to be tempered in 2016. Nonetheless, there are pockets of opportunities in e-commerce.
Traditional storage and distribution facilities are morphing into fulfilment centers, taking advantage of rising
consumerism and untapped potential in South East Asia. This will benefit the demand for warehouse space in
Singapore, as Singapore grows into a regional logistic hub with leading logistic groups expanding their footprint.
The opening of DHL Supply Chain Advanced Regional Centre and Kuehne & Nagel’s Singapore Logistics Hub
further underscores the commitment of major players to house their operations in Singapore to support a diverse
range of industries in Asia.
Despite the growth of e-commerce, business cost is likely to stay high and cost containment will be a key priority
for many companies. With challenging economic conditions, warehouse rentals are expected to stay stable or
ease marginally in 2016.
6.0 BUSINESS PARK PROPERTY MARKET OVERVIEW
6.1
Stock and Net Supply
In 2015, islandwide business park stock increased by 13.7% (2.0 million sq ft) to 17.0 million sq ft.
The increase came mainly from built-to-suit completions in Changi Business Park, with corporate functions ranging
from global headquarters to non-core support operations. For example, Rigel Technology Global Headquarters
(140,000 sq ft), Soo Kee Jewellery Research Facility (114,100 sq ft) and DBS Asia Hub Phase II (62,400 sq ft) all
obtained their Temporary Occupation Permit in 2015. Viva Business Park (967,000 sq ft), which was formerly known
as Technopark@Chai Chee, was rezoned from B1 space to Business Park with retail and lifestyle amenities.
Table 5.2: Key Investment Transactions
Development Address
Tenure
NLA
(Sq ft)
Vendor
Buyer
Transacted
Price
($million)
Unit Price
8
($ per Sq ft)
Kim Heng
Warehouse
Penjuru
Lane
30 year from
2011
54,000
Cache
Logistics Trust
JTC
Corporation
9.7
185
GKE
Warehousing &
Logistics
30 Pioneer
Road
30 year from
2015
281,000 GKE Group Viva Industrial
Trust
45*
160
Mapletree
Logistics Trust
20
Tampines
Street 92
30+30 year
(1 Jul 1990)
99,600 Mapletree
Logistic Trust
Keppel T&T
20
200
8 Based on transacted price and NLA. Figures do not add up due to rounding off.
