A six-storey B1 industrial building at 12 Hoy Fatt Road in the Alexandra/Leng Kee area is up for sale with a guide price of $35 million.
The price works out to approximately $620 psf on the building’s gross floor area (GFA) of approximately 56,445 sq ft, according to Huttons Asia, which is marketing the property.
The fully tenanted building sits on a land area of approximately 20,230 sq ft and has a remaining leasehold tenure of about 30 years, expiring in 2056.
The building currently houses a diverse mix of tenants across all six levels. The ground floor serves as a carpark, while the second floor is occupied by Mulberry Learning Centre, a preschool and infant care operator.
The third floor is configured as a furniture gallery, the fourth floor a production and ancillary office, the fifth floor a production, ancillary office and self-storage space, and the top floor is fully operated as self-storage facilities. The self-storage facility is operated by SelfStore.
“The asset offers investors immediate, stable rental income with no vacancy risk at the point of acquisition,” says Aric Lim, group district director at Huttons Asia. “The diversified tenancy base across childcare, retail, production and self-storage reduce concentration risk.”
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According to Lim, the purchaser has the option to vacate the furniture gallery tenant and production and ancillary office tenant on the third and fifth floors, allowing both levels to be converted fully into additional self-storage space.
“Given the strong performance and structural demand underpinning the self-storage segment, such a reconfiguration could meaningfully increase the overall rental yield of the asset,” says Huttons Asia.
Lim notes that the self-storage segment continues to benefit from structural tailwinds, driven by Singapore’s limited residential storage space and the sustained growth of home-based businesses and e-commerce activity.
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The property is located within the established Alexandra/Leng Kee business precinct, with Redhill MRT Station on the East-West Line approximately 550m away. Major retail and lifestyle destinations including IKEA Alexandra, VivoCity and HarbourFront Centre are within a five- to 10-minute drive.
“Investors’ interest in industrial assets are tilted towards those with a longer lease remaining as these assets are viewed as offering better value retention. The subject property is priced very competitively against recent listings and transactions in the Alexandra/Leng Kee area. Lastly there is no land rent payable,” adds Lee Sze Teck, senior director of data analytics at Huttons Asia.
The expression of interest exercise for 12 Hoy Fatt Road will close at 4pm on July 15.
