Three strata food-factory units located at Food Concept @ Pandan, an industrial building at 239 Pandan Loop, are on the market at a guide price of $11 million. The freehold properties are up for sale through an expression of interest (EOI) exercise, according to a press release by Edmund Tie, which is marketing the units.

Food Concept @ Pandan is a 10-storey ramp-up industrial building comprising 38 units. EdgeProp LandLens tool indicates that the District 5 property is zoned for Business 2 use.

The three units for sale sit on the top floor and have an area of approximately 1,905 sq ft, 2,023 sq ft and 2,045 sq ft. Each unit features a loading and unloading bay located at the doorstep and a floor-to-floor height of 7m.

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Each unit has a regular layout that can accommodate food-related businesses like a central kitchen, food processing, food packing, cold room, cold storage and food catering.

Two of the three units are currently leased, offering the successful buyer immediate rental income. Approximately $200,000 to $400,000 of capital expenditure has been invested in each of these two units, says Edmund Tie. The third unit is offered on a vacant possession basis.

The units are up for sale individually or collectively, with the guide price of $11 million reflecting an average of $1,841 psf.

“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,” says Swee Shou Fern, head of investment advisory at Edmund Tie.

She notes that demand for food factory spaces is expected to be robust, fuelled by the growing prevalence of central and cloud kitchens and the continued popularity of food delivery services. “Transactions of strata food factory units at Citrine Foodland in Tai Seng and Foodfab@Mandai have already surpassed $1,900 and $2,000 per sq ft, respectively,” she says.

Last November, Noel Building, an industrial property at 50 Playfair Road, was sold en bloc for $81.18 million, 17% above its guide price of $70 million. Edmund Tie brokered the deal. According to Swee, the purchaser intends to develop the site into a food factory, which she believes reflects the confidence of developers in the sector.

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The EOI exercise closes on Feb 27.

(Source: EdgeProp LandLens)