TEE Building in Bukit Batok for sale at $20 mil
By Timothy Tay
/ EdgeProp Singapore |
The property is a six-storey detached factory building with a total gross floor area of 55,564 sq ft
SINGAPORE (EDGEPROP) - An industrial building at 25 Bukit Batok Street 22 is up for sale by expression of interest (EOI). The property has a guide price of $20 million, which translates to about $715 psf on the land area. Knight Frank is the sole marketing agent for this sale and the EOI closes on Oct 29.
The 27,977 sq ft site is zoned Business 1 with a gross plot ratio of 2.5 under the 2019 Master Plan. The land has a 30-year leasehold which began on May 1, 1992. This means that the property has less than a year remaining on its lease.
The building is currently the headquarters of mainboard-listed engineering company TEE International, which also owns the property. It consists of a six-storey detached factory building with an attached ancillary office space. It has a total gross floor area of 55,564 sq ft. The site and building space can be used as a warehouse, a production area or an office.
The site and building space can be used as a warehouse, a production area or an office. (Picture: Knight Frank)
According to Knight Frank’s sales listing, the development will be sold with existing or partial tenancy, and the sale will be made on an “as is” basis.
Tricia Tan, an associate director in Knight Frank’s auction team, says the property has the option to renew its lease term for another 30 years, subject to approval by the land lessor, JTC.
“We understand from the existing owner that the option for a further of 30 years will be granted so long as there are no breaches and/or non-observances of the binding conditions between the existing owner and JTC. We further understand from the existing owner that the investment requirements have been fulfilled,” she adds.
On Sept 10, TEE International announced that DBS Bank would be exercising its rights to take possession of a mortgaged property at 33 Changi North Crescent, a Business 2 industrial building owned by TEE International. Reports indicate that it is in connection to banking facilities provided by DBS to TEE International.
In 2019, the latter was under regulatory investigation for unauthorised transactions totalling $6.55 million linked to its then group CEO and managing director Phua Chian Kin. He was removed from his appointments in March last year, after admitting to taking company funds to repay personal debts and satisfy margin calls.
The sale of the company’s building presents an opportunity for industrialists to own a development that is close to manufacturing and industrial areas, says Tan. The property also provides an efficient office space to support business needs. The sale will likely attract owner-occupiers as well as investors looking to capitalise on the demand for B1 industrial space, she notes.
“Demand for industrial space has been consistent throughout 2021 and industrialists are still keen on acquiring new properties. The ongoing pandemic has increased demand for new technologies such as 5G, artificial intelligence and the Internet of things. Under URA allowable use guidelines, these businesses can only operate in B1 industrial properties or business park buildings, which are classified as light industrial use,” she explains.
Tan adds that the property will likely attract owner-occupiers as well as investors looking to capitalise on the demand for B1 industrial space. Owner-occupiers could come from the IT, e-commerce or media production sectors. She says: “These businesses require large space for their operations and special technology and equipment. The building could also be used as a corporate showroom.”
The property is located within a neighbourhood of factory units and HDB estates. The industrial estate consists of low-rise industrial buildings and terrace workshops and is an 11-minute bus ride from Jurong East MRT Station, which is along the North-South and East-West Lines. Nearby amenities and commercial developments include West Mall, Bukit Batok Town Centre, IMM, Westgate, Jem and Jurong East Town Centre. (See: Find HDB flats for rent or sale with our Singapore HDB directory)
Check out the latest listings near Tee Building, West Mall, Bukit Batok Town Park, IMM, Westgate, Jem, Jurong East MRT Station
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