(SINGAPORE) Net allocation of prepared industrial land went into negative territory in the second quarter for JTC Corporation, as the downturn continued to take a toll.
JTC's Q2 facilities report shows net allocation was negative 32.2 hectares, compared with a net allocation of plus 14 ha in Q1 and 34 ha in Q2 2008.
Gross allocation in Q2 this year slid to 5.4 ha. And termination jumped to 37.6 ha, from 16.7 ha in Q1. Almost half of total terminations stemmed from the electronics segment. And almost a quarter of terminations was due to companies consolidating operations.
Net allocation of generic land and specialised parks also moved into negative territory in Q2.
Net allocation of generic land was negative 7.1 ha, down from plus four hectares in Q1 and significantly lower than 26.7 ha in Q2 2008. As gross allocation fell 77 per cent quarter-on-quarter to 2.5 ha, termination rose 37 per cent to 9.6 ha in Q2. The manufacturing sector accounted for 74 per cent of gross allocation.
Net allocation of specialised parks dropped to a negative 25 ha versus plus 10 ha in Q1 and 7.3 ha in Q2 2008. This was also due to lower gross allocation and higher termination. Gross allocation plunged 85 per cent quarter-on-quarter to 2.9 ha, while termination rose three-fold to 28 ha.
Wafer Fab Park accounted for 65 per cent of termination within specialised parks, with 18.3 ha in Q2, which widened net allocation for Wafer Fab Park from negative 6.5 ha in Q1 to negative 18.3 ha in Q2.
In JTC's ready-built factory (RBF) segment, net allocation remained negative in Q2 but improved slightly, climbing to negative 7,800 sq m versus negative 8,900 sq m in Q1, thanks to a 64 per cent increase in gross allocation to 17,800 sq m. Higher gross allocation was partly offset by higher termination, which rose by 30 per cent to 25,600 sq m in Q2.
The RBF occupancy rate was 0.3 percentage points lower at 97.4 per cent.
Meanwhile, Phase 2A of Fusionopolis is under construction and is expected to be finished by 2013, JTC said yesterday.
Source: Business Times, 13 Aug 2009