(SINGAPORE) The building at 37 Mactaggart Road in Macpherson is up for sale by expression of interest, with an indicative price of $26 million.
This works out to roughly $612 per square foot on a total gross floor area of 42,480 square feet for the seven-storey freehold industrial building. The price tag also reflects a land price of $1,532 psf, given the land area of 16,968 sq ft.
A brand new freehold industrial development in the Macpherson Industrial Area will lie in the range of $800-880 psf based on saleable floor area, a market watcher told BT.
Cushman & Wakefield, the marketing agent for the property, said that under the 2008 Master Plan, the plot is zoned for Business 1 industrial use with a gross plot ratio of 2.5.
Tan Ser Fong, Cushman & Wakefield director of capital markets, said: 'Freehold industrial properties with cold room facilities are limited and hard to come by in the Macpherson area. In general, there has been an uptick in demand for industrial properties and industrial strata properties.'
She added: 'The ABSD on residential property has sparked interest in this asset class from traditional residential investors that are new to this sector and who are also attracted by the availability of higher returns than is available in the retail and office sectors.'
Ms Tan also highlighted that the Mactaggart Road industrial property could potentially be refurbished or redeveloped for strata sale, subject to the relevant authorities' approval.
Nicholas Mak, head of research at SLP International, said that the Macpherson Industrial Area has been gaining popularity.
'The Macpherson area is attractive to some investors because it is centrally located and it is an established industrial area that is undergoing some rejuvenation.'
Ms Tan said that notable developments in the area such as the Tai Seng MRT station and recent project launches including The Commerz @ Irving and Novelty Biz Park are evidence that the locality is gaining traction.
Mr Mak also believes that investors are afforded an added flexibility. 'Investors can also have a choice of freehold and leasehold industrial properties in this location.'
The property that is up for sale is leased out to a single tenant and the tenancy expires in 2014. The expression of interest exercise will close on April 18 at 3pm.