Citimac Industrial Complex, a freehold commercial property in District 13 was sold en bloc for S$430.1 million, which translates to S$1,047 per square foot for the gross floor area (GFA).
The inclusive unit land price of the freehold industrial complex is approximately S$82 million worth of development charge for the location close to the Tai Seng MRT Station.
A tender that closed for the property on June 21 marked the collective sale, which was confirmed over the weekend.
The brokerage of the sale is by Edmund Tie & Co. The group’s investment advisory senior director, Swee Shou Fern, did not divulge the buyer’s identity.
The only given information is that a foreign developer made the purchase.
According to industry news, speculations connected the buyer to China’s Zhao family, who were also behind the purchase of Cityvibe in Clementi last year.
The company underwent a sale of its shares, which includes a four-storey commercial building. Its strategic location is close to Clementi MRT station.
There are 110 strata units within the Citimac industrial complex and owners of the properties have units with different sizes ranging from approximately 160 square meters to 500 square meters.
The location size translates to 1,722 square feet to 5,382 square feet. Each owner is entitled to sales proceeds between S$2.1 million and S$10 million for each unit.
The Strata Titles Board is going to approve the proposed collective sale of the industrial complex if there is no unanimous approval of the Citimac collective sale by the owners.
The decision of the High Court could be necessary if the need arises.
Based on statements from market watchers, Citimac put up the collective sale in the past in 2014.
The industrial complex has a minimum price amounting to S$550 million. The eight-storey building has a strategic location that is at the corner of Upper Paya Lebar and MacPherson roads. It includes warehouses, showrooms, and factories, which was completed during the 1980s.
The site measures 139,789 square feet but it can also undergo redevelopment for the new project having 489,262 square feet gross floor area (GFA). The zoning of the site is for Business 1-White use with a maximum gross plot ratio of 3.5 measurement.
Of the total gross plot ratio, 2.5 of this will be for the use of Business 1 (B1) and the remaining 139,789 square feet GFA is for white allocation.
The use of the white component for the purpose of retail is mostly possible for developers. It is most likely due to the prime MacPherson Road frontage of the site.
Citimac is now Singapore’s largest redevelopment site specifically a freehold Business 1-White, which is now belong to new owner.
There are other deals available in the vicinity such as the S$45.8 million Guang Ming Industrial Building (S$837 per square foot for every plot ratio, which was put up in September 2013.
In November 2014, Irving Industrial Building was on sale for S$160 million and in early 2016, Harper Kitchen was put on sale for S$51.1 million.
The Tai Seng industrial and commercial hub houses companies such as Charles & Keith, Malaysia Dairy Industries, Tee Yih Jia Group, Sakae Holdings, BreadTalk Group, and Lian Beng Group.