Tokenised investment in CapitaLand's Kallang Way food factory redevelopment fully taken up, says Fraxtor
By EdgeProp Singapore
/ EdgeProp Singapore |
Artist's impression of the upcoming nine-storey food factory at Kallang Way (Picture: CapitaLand Development)
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Singapore-based co-investment platform Fraxtor announced on Feb 13 that it had closed a Kallang Way food factory development opportunity. The firm had fractionalised its minority stake of about 13.5% in the upcoming development, which will sit on a 44,107 sqm (474,768 sq ft) industrial (Business 2) development site zoned for a food factory.
Fraxtor co-founder Oliver Siah says it marks Singapore's first partially tokenised government land sale (GLS) through a regulated platform.
CapitaLand Development (CLD) will develop the nine-storey food factory in the Kolam Ayer industrial estate close to Paya Lebar, Macpherson and Geylang. CLD was awarded the site last November after placing a top bid of $368.9 million for the industrial development site at the close of the tender in October.
The redevelopment will include adaptive reuse of the last three-storey, terraced showroom factory cluster built in the 1980s. "The proposed development will retain the distinctive design of Singapore’s industrial architectural legacy," says CLD.
CapitaLand has a strong development track record that includes food and industrial properties in Singapore (Photo: CapitaLand)
In a statement last October, Tan Yew Chin, CEO of CLD (Singapore), said, "CapitaLand has a strong development track record that includes food and industrial properties in Singapore." Over the years, the group has developed more than 5.7 million sq ft of industrial spaces for sale, adds Tan.
"With tokenisation, investors can invest alongside CapitaLand Development for as little as $25,000,” says Fraxtor’s Siah. “Investors also have a clear exit for the development project.”
Fraxtor's Siah attributes the strong investor interest to the fact that it will be Singapore's largest food factory. Situated along Kallang Way, the upcoming food factory is well-connected via expressways such as the Pan Island Expressway (PIE). It is near MRT stations such as Aljunied, Geylang Bahru, Macpherson and Mattar. "It's a strategic location with an excellent catchment," he says.
Siah: With tokenization, investors can participate in the development project through Fraxtor, with a minimum investment of $25,000 (Photo: Samuel Isaac Chua/EdgeProp Singapore)
Siah adds that the "30 by 30" goal of growing 30% of Singapore's food locally by 2030 also helped spur interest in the food sector.
Fraxtor's exit strategy is also aligned with CLD's, which is to sell the strata-titled units to end-users. Targeted for completion within the next four to five years, the factory will serve a spectrum of food-related end-users, including manufacturers, caterers, storage and central kitchen operators. The building will also have more than 10,764 sq ft of retail space.
The industrial GLS site has a 33-year lease, which is longer than other industrial GLS sites with 20- or 30-year leases. "A lease of over 30 years is more manageable for F&B operators who do not want their capital tied up in a freehold factory," says Siah.
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