Rare Freehold Strata Food Factory Units at Pandan Loop Up for Sale

Singapore, 16 January 2024 – EDMUND TIE, as the exclusive marketing agent, is putting up for sale three freehold strata food factory units located within Food Concept @ Pandan, a 10-storey ramp-up multi-user industrial building comprising 38 units.

The sale will be by way of an expression of interest exercise; interested parties are invited to submit their interest to EDMUND TIE by 27 February 2024 at 3pm.

The three units are located on the top floor and have unit area of 177 sq m, 188 sq m and 190 sq m. Each unit enjoys the convenience of a loading/unloading bay located at the doorstep and they are one of the few units in the development that boast of a lofty floor-to-floor height of 7 m¹ , both of which are not part of the strata area.

The regular layout of each unit provides ease-of-use flexibility to accommodate various food-related businesses such as central kitchen, food processing, food packing, cold room, cold storage and food catering.

Currently, two of the three units are leased, offering the successful buyer the advantage of immediate rental income. A considerable capital expenditure of approximately S$200,000 to S$400,000 has been invested in each of these two units. The third unit is offered on a vacant possession basis.

The indicative guide price for all three units is S$11 million, reflecting an average of $1,841 per sq ft. To be purchased either individually or collectively, the three units are eligible for purchase by local and foreign investors alike and are exempted from Additional Buyer’s Stamp Duty.

Ms Swee Shou Fern (徐晓芬), Head of Investment Advisory at EDMUND TIE, says, “In light of the scarcity of designated areas permitted for food factory usage, the subject property presents a rare opportunity to investors or business owners to secure such space. Furthermore, the freehold tenure is a major plus point, distinguishing it from a significant portion of such similar spaces in Singapore that are typically leasehold or subject to JTC’s jurisdiction.”

She adds, “Demand for food factory spaces is expected to be robust, fuelled by the growing prevalence of central and cloud kitchens. This is due to the continued popularity of food delivery services and e-commerce, streamlined operations by F&B operators to deal with labour crunch among other costs, as well as the government’s push for greater productivity and innovation in Singapore’s food industry as mapped out in the Food Services Industry Transformation Map.”

“What’s more, transactions of strata food factory units at Citrine Foodland in Tai Seng and Foodfab@Mandai have already surpassed S$1,900 and S$2,000 per sq ft, respectively. We are optimistic that the subject property will greatly appeal to astute investors seeking a resilient and burgeoning asset class. Not forgetting, developers are also exhibiting confidence in this sector, evident from the highly competitive tender results for 50 Playfair Road, a recent collective sale successfully transacted by EDMUND TIE, where the purchaser intends to develop the site into a food factory,” says Ms Swee.

Located on a prominent corner plot within the established Pandan Food Zone, Food Concept @ Pandan benefits from proximity access to businesses and facilities along the food supply chain, as well as a labour catchment from the residential neighbourhoods in Clementi and West Coast vicinities. The property is also well-served by major roads and expressways, including the West Coast Highway and Ayer Rajah Expressway.

¹ Ground-floor and top-floor units in the development have floor-to-floor height of 7 m, and other units at 4.725 m.

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