Eight freehold industrial units at M-Space to be sold from $1,230 psf

M-Space, a B2 industrial building located at 6D Mandai Estate, was completed in 2014. (Picture: SRI)

Eight adjacent industrial units at M-Space, a freehold factory building at 6D Mandai Estate, will be offered for sale at Singapore Realtors Inc’s (SRI) upcoming auction on Feb 28. According to Mok Sze Sze, managing partner for auctions at SRI, the owner is selling each unit individually and at a guide price of $1,230 psf.

The eight ground-floor units have a combined gross floor area of 9,891 sq ft. The largest unit is 1,539 sq ft, while four units are 1,216 sq ft, two are 1,206 sq ft, and the smallest is 1,076 sq ft. Based on the gross floor area, the units have a collective price tag of about $12.16 million.

Two units will be sold with existing tenancies. The 1,076 sq ft unit is leased until September 2025, while the neighbouring 1,216 sq ft unit is leased until June next year. The remaining six units will be sold vacant.

The largest unit for sale is a corner unit on the ground floor measuring 1,539 sq ft. (Picture: SRI)

Mok notes that the demand for well-located industrial units has remained robust over the past year. It is becoming increasingly uncommon to find a row of adjacent Business-2 (B2) industrial units on the ground floor put up for sale simultaneously. Most units in the development serve as factory units or workshops, with eateries situated within both the building and nearby developments.

She adds that the sale of these freehold industrial units presents a rare opportunity for both owner-occupiers and investors. They can acquire a prime unit for business operations or capitalise on the robust demand for industrial spaces to bolster their investment portfolios.

M-Space, completed by Lian Beng Group in 2014, is in a B2 industrial estate bordered by Mandai Road and Woodlands Road. The estate is predominantly occupied by factories, warehouses, foreign workers’ dormitories and food factories.

M-Space is situated in an industrial estate populated by factories, warehouses, and dormitories for foreign workers. (Picture: SRI)

Two notable new industrial developments in the area are Foodfab @ Mandai at 7 Mandai Estate, a collaboration between ZACD Group and Welltech Construction; and Food Vision @ Mandai at 21 Mandai Estate, developed jointly by EL Development and Sim Lian Holdings. The industrial estate also features two foreign worker dormitories, the 1,900-bed Westlite Juniper at 23 Mandai Estate and the 6,300-bed Westlite Mandai at 34 Mandai Estate.

Last year, seven units at M-Space changed hands, at prices ranging from $643 to $1,043 psf. The largest unit was a 1,647 sq ft unit on the 10th floor that was sold for $1.15 million ($698 psf) on June 16. The neighbouring 1,399 sq ft unit was sold on the same day for $900,000 ($643 psf).

Based on EdgeProp Singapore’s resale data, the average psf-price for resales at M-Space is approximately $868. The average monthly rent is around $2.40 psf, indicating an average rental yield of 3.3% for most landlords.

This is relatively high compared to the surrounding freehold industrial buildings, except for Eldix at 11 Mandai Estate, where the average rental yield is about 3.7%, and the average rent for units is about $2.06 psf per month. Resale caveats indicate that the average resale price of an industrial unit at Eldix is about $671 psf.