Complete Property Market Updates of Singapore

July 1, 2008

Soilbuild clinches JTC award to build stack-up factory

Filed under: Commercial,General,Regulators — Propertymarketupdates @ 4:00 am

TO encourage private sector participation and promote an active industrial property market, JTC Corporation yesterday awarded the development of its stack-up factory to Singapore Exchange-listed Soilbuild Group Holdings.

This is the first time JTC has awarded such a project to a private developer.

Soilbuild has won the tender to build, own and operate a business facility on a site at Tanjong Kling, with a land area of 565,800 sq ft and a maximum gross floor area of 1.41 million sq ft. The site is on a 30-year lease, with an option to renew for a further 30 years.

A five-storey development is slated for completion by early 2010. It will comprise 45 modular and regular-shaped units, with sizes ranging from 23,700 to 60,300 sq ft. Total development cost is likely to be around $208 million.

Soilbuild expects the development, which is near Jurong Island, to cater to large corporations or MNCs in the marine engineering, oil and gas exploration and petrochemical-related industries.

Another two bidders took part in the concept and fixed-price tender. According to JTC, Soilbuild’s proposal stood out because of enhanced features in the concept, such as a layout that facilitates heavy vehicular movement within the building.

Soilbuild’s win complements the emergence of its business space portfolio as a significant new growth engine. ‘The expanding portfolio of business properties will enable us to tap on the robust demand from investors and grow our recurrent income stream in the coming years to support a progressive dividend policy,’ said executive director Low Soon Sim.

Soilbuild now has almost 3.3 million sq ft of business space projects in the pipeline. Shares of the developer closed unchanged at 95 cents yesterday.

In its statement yesterday, JTC noted an increase in demand for industrial space in the past three years due to robust growth in the manufacturing sector.

‘This momentum is expected to continue as more investment projects are anchored in Singapore, creating downstream opportunities for supporting industries,’ it said.

To optimise land use, JTC has been exploring ways to improve the design of its stack-up factory development to better meet the needs of various industries.

Source : Business Times – 3 Jun 2008

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