Sole marketing agent JLL announced that Soon Hock Pte Ltd, a wholly-owned subsidiary of commercial and industrial developer Soon Hock Group, has emerged as the buyer of Ching Shine Industrial Building at the close of the tender on April 3.
Soon Hock had submitted a bid of $113.2 million, just a shade above the minimum price of $113 million set by JLL. The tender received two bids and three expressions of interest, says Nicholas Ng, senior director of capital markets at JLL Singapore, who handled the collective sale.
According to Ng, developers were drawn to the property given that it’s a regular site with freehold tenure, 100m frontage along Shaw Road, and a five-minute walk from the Tai Seng MRT Station on the Circle Line.
The property sits on a freehold site of 49,308 sq ft. It has 52 strata units, with a total gross floor area of 137,341 sq ft. Soon Hock’s purchase price of $113.2 million reflects a unit land rate of $824 psf per plot ratio (ppr).
Source: EdgeProp Landlens
“This acquisition aligns with our long-term vision of developing high-quality, future-ready assets in key growth corridors, ensuring we deliver sustained value to our stakeholders,” says Walter Tan, CEO of Soon Hock Group. “The freehold tenure, combined with the property’s prime location, presents strong potential for both asset enhancement and long-term capital appreciation.”
It was the first time that Ching Shing Industrial Building was launched for tender, and the sale had secured the consent of 80% of the strata-titled owners who are represented by Donaldson & Burkinshaw LLP.
The building was completed in the early 1980s and zoned “Business 1”. It has a gross plot ratio of 2.5 under the URA Master Plan 2019.
Nearby, the former Noel Building, a freehold Business 1 industrial building, was sold en bloc for $81.18 million in November 2023, about 17% above the $700 million guide price. The building will be redeveloped by a consortium led by Apex Asia into a new 12-storey, strata-titled ramp-up food factory named Food Point Tai Seng.
Other prominent food factories in the area include BreadTalk IHQ, Sakae Building and Food Empire Building.
