Lian Beng-Oxley launch strata-titled industrial building in Tampines
By Michael Lim
/ The Edge Property |
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A new ramp-up industrial development, T-Space, is coming up on Tampines North Drive 2, in the vicinity of IKEA Tampines, Giant hypermarket and Courts Megastore. Developed by Singapore-listed builders Lian Beng Group and Oxley Holdings in a 51:49 joint venture (JV), T-Space is a 30-year leasehold complex with 260 strata-titled units spanning nine floors.
The JV partners purchased the 394,881 sq ft site from JTC Corp in a govern ment land sale for $64.39 million in March 2015.The purchase price translates to $87.34 psf per plot ratio. The developers are spending close to $120 million on construction, which brings the total estimated development cost to about $184.8 million. The project is scheduled to be completed by 2019.
The main façade of T-Space fronting Tampines North Drive 2
JTC had requested that the developers of T-Space create a “business park environment” so that a community of businesses can grow and flourish, says Oxley’s deputy CEO, Eric Low. T-Space comprises three interconnected blocks with four different unit types. The largest is The Terrace Collection, where each unit spans four levels and comes with private internal lifts. There are only 15 such units in the entire development and they are 19,063 to 38,072 sq ft. Prices start from $3.5 million ($182 psf).
The Studio Collection makes up the largest number of units (95) and these are between 2,196 and 3,283 sq ft, and include a mezzanine floor. The Studio units are priced from $699,000 ($318 psf). There are also 68 double-storey Courtyard units of 2,422 to 3,122 sq ft. They occupy the uppermost levels of the complex and have direct access to the rooftop space, swimming pool, gym and other amenities. The Courtyard units are priced from $709,000 ($293 psf). There are 71 Typical units — single-storey, with areas ranging from 1,636 to 2,573 sq ft, and priced from $599,000 ($366 psf).
A cross section showing the layout of a four-storey terraced unit that is 19,063 to
38,072 sq ft
The interior of a Studio unit, measuring 2,196 to 3,283 sq ft, including a mezzanine floor
Oxley and Lian Beng launched the first phase of T-Space for sale in March this year. So far, 84 out of the 90 units released have been snapped up. The developers will release another 90 units in the second phase, for sale over the weekend of Nov 19 and 20.
According to Lian Beng Realty director Matthew Ong, 95% of the first-phase buyers were end-users. Therefore, bigger units, such as those in the Courtyard and Terrace Collections, were popular. Seven of the 15 Terrace units in that phase were sold. Sixteen Studio units and 17 Typical units were taken up. So far, the Courtyard is the bestseller, with 43 units sold.
Christine Li, head of research with Cushman & Wakefield was not surprised by the strong end-user take-up rate at T-Space.
“Thirty-year leasehold strata-industrial developments in good locations are hard to come by and they are ideal for end users especially SMEs that want stability in their business, and not worry about rents,” she adds.
The short lease should not be a concern for banks as they will treat the property as part of a business loan, which is different from a mortgage on a home, says Li.
Low (left) and Ong hope to attract e-commerce retailers to T-Space
Kenneth Tay, co-founder and director of home-grown firm Ciseern Interior Design, bought a unit in the Terrace Collection. The company’s headquarters is currently in Bartley Biz Centre on Kaki Bukit Road 4 and it has five retail outlets across Singapore, including one in Courts Megastore in Tampines. Tay, 43, will move Ciseern’s HQ to T-Space when it is ready. He says it makes sense because the unit is large enough to cater for future business expansion and their business partner Courts is just next door.
Another business owner, Leslie Foo, founder and CEO of Legate, a specialist in “invisible grilles” as well as carpet grass and roller blinds, purchased three adjoining Courtyard units for $2.4 million.
Foo, 47, plans to amalgamate the two largest units into one 6,000 sq ft unit to house the company’s office and showroom while reserving the third unit for a function room as well as client meeting rooms. When T-Space is completed, he intends to relocate his operations and 38 staff from Legate’s current 1,600 sq ft premises at Northstar on Serangoon North Avenue 4.
Foo likes the location as it is not a typical industrial estate, which turns into a ghost town on weekends, given that T-Space has retail warehouses in the vicinity, as well as a future residential development adjacent to it. He also believes in providing better work-life balance for his staff, who will be able to make use of the swimming pool and gym above their office.
Besides interior design and home furnishing and renovation firms, Oxley and Lian Beng hope to attract other trades to T-Space, especially those in e-commerce. The space is ideal for e-commerce retailers who will be able to store and ship their goods, display merchandise as well as operate their office within the same unit, says Oxley’s Low.
This article appeared in The Edge Property Pullout, Issue 754 (Nov 14, 2016) of The Edge Singapore.
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