It's also enhancing cluster knowledge, says chief executive
(SINGAPORE) With a long list of new and ongoing projects to look after, JTC Corporation's chief executive officer Manohar Khiatani hardly has time for hobbies.
He would like to pick up golf, but new projects such as a proposed medical technology park and a new complex for the surface finishing sector are keeping him busy.
Mr Khiatani, 50, took over the helm at JTC last October. Prior to that, he was deputy managing director at the Economic Development Board (EDB) where he had spent over 10 years in various other positions including director (Europe) and director (logistics and transport engineering).
Barely a year into his new job, Mr Khiatani is already rolling out new projects. The proposed medical technology (medtech) park is one of his more immediate tasks.
The park will be located on a 7.4 hectare site in the Tukang area and will offer 185,000 square metres of space when it is ready.
JTC plans to develop the park in stages, with the first phase expected to yield 75,000 sq m of space when it is completed by late 2013.
The park will provide basic space which medtech companies can retrofit for their specialised needs. There will also be facilities which firms can share so that starting up can be cheaper and faster. JTC's plan is to create synergy by housing equipment manufacturers, suppliers and other supporting firms together.
A second key project, one which is still being conceptualised, is a complex for companies involved in surface finishing.
These firms use electroplating and other processes to make metal products more durable, and they service the automobile, electronics, telecommunications and many other industries.
As with the medtech park, the complex will have common facilities for tenants. They will be able to share the treatment of industrial waste water, the recycling of treated water and other services. JTC intends to minimise the complex's water usage and carbon footprint.
More projects could be in the pipeline. 'We want to enhance our innovation capacity, particularly in areas such as land intensification and optimisation, energy efficiency and built environment sustainability,' Mr Khiatani says.
But it is not just concrete projects that Mr Khiatani is focused on. He also wants JTC to deepen relationships with industries so that it can build the right facilities for them.
'JTC has to be more than just a landlord,' he says. 'We want to better understand the needs of our customers, the industries they operate in, and work together with them to develop innovative infrastructure solutions.'
JTC restructured its organisation last year to try to achieve this. Business units had been grouped according to property types but they now serve key sectors such as electronics, media, bio-medicals and clean technology.
'We are now developing a deeper understanding of strategic industry clusters,' Mr Khiatani shares. 'With this cluster knowledge, our officers are now able to engage our customers more deeply and holistically. Certainly more so than a normal landlord,' he says.
Source: Business Times, 2 Aug 2010
Showing posts with label Industrial properties. Show all posts
Showing posts with label Industrial properties. Show all posts
Monday, August 2, 2010
Monday, July 5, 2010
S'pore looking at intensifying land use for O&M industry
JTC Corp seeks consultant to study sector involving over 3,000 companies
(SINGAPORE) Having already ventured underground, Singapore is looking at how it can further intensify the use of industrial land here. It will take a close look at the growing offshore and marine (O&M) sector, given the general shortage of sites, especially those with waterfront access.
JTC Corporation, which is seeking a consultant for this, says the study will cover a sector involving over 3,000 companies, broadly involved in two clusters: marine engineering (including shipbuilding, rigbuilding and ship or FPSO conversions) and offshore oil and gas exploration and production support services.
The feasibility study by the appointed consultant 'will not just be restricted to existing oil and gas activities here, but also those that are currently carried out overseas and have the potential to be done in Singapore,' the tender document said.
'The purpose of the study is to establish the viability of intensifying land usage for these oil and gas activities,' it added.
JTC's land-intensification study - starting with the O&M industry and also for the aerospace industry - clearly marks a new phase in the corporation's attempt to carve out more industrial space here.
It has already embarked on building underground projects, like for oil storage on Jurong Island, and possibly for science parks, and logistics and data processing centres later. JTC is also currently studying building very large floating structures for various industrial purposes.
Its latest study to intensify land usage for the O&M industry follows the planned development of a 13-hectare offshore marine support base at the new hockey-stick shaped Tuas View Extension area.
The support base, replacing an earlier one at Shipyard Road in Jurong, will cater to a strong pipeline of customers for waterfront land. All the earlier offshore suppliers there have since relocated to Loyang Offshore Supply Base in the east.
Construction of the Tuas View base is slated to start this month, with the multi-million dollar project expected to be operational by end-2011.
In line with its land intensification effort, the multi-user facility will provide common waterfront and berthing facilities for O&M companies involved in the manufacturing and fabrication of heavy equipment, components and structures, a JTC spokeswoman earlier told BT.
'It is aimed at attracting new and quality types of manufacturing activities which will generate high economic value in terms of value-add and fixed asset investment,' she added.
JTC said that while companies within the O&M sector have vastly different facility requirements, the sector nevertheless 'shares certain common characteristics in terms of the space/land utilisation of its facilities, which is generally low'.
For instance, the sector commonly uses computer numerical controlled machines, which because of their weight and high-specifications require low-vibration and are usually located on ground-floor areas. Because most of their materials and products are heavy and bulky, these are also usually stored in the open or on the ground rather than stacked within warehouses.
The consultant will be required to study existing value-chain activities in O&M operations and come up with conceptual designs for each of the two industry clusters that can increase the plot ratio or reduce the land required. This includes the possibility of their having multi-tenanted buildings with shared facilities, among other solutions.
Source: Business Times, 5 Jul 2010
(SINGAPORE) Having already ventured underground, Singapore is looking at how it can further intensify the use of industrial land here. It will take a close look at the growing offshore and marine (O&M) sector, given the general shortage of sites, especially those with waterfront access.
JTC Corporation, which is seeking a consultant for this, says the study will cover a sector involving over 3,000 companies, broadly involved in two clusters: marine engineering (including shipbuilding, rigbuilding and ship or FPSO conversions) and offshore oil and gas exploration and production support services.
The feasibility study by the appointed consultant 'will not just be restricted to existing oil and gas activities here, but also those that are currently carried out overseas and have the potential to be done in Singapore,' the tender document said.
'The purpose of the study is to establish the viability of intensifying land usage for these oil and gas activities,' it added.
JTC's land-intensification study - starting with the O&M industry and also for the aerospace industry - clearly marks a new phase in the corporation's attempt to carve out more industrial space here.
It has already embarked on building underground projects, like for oil storage on Jurong Island, and possibly for science parks, and logistics and data processing centres later. JTC is also currently studying building very large floating structures for various industrial purposes.
Its latest study to intensify land usage for the O&M industry follows the planned development of a 13-hectare offshore marine support base at the new hockey-stick shaped Tuas View Extension area.
The support base, replacing an earlier one at Shipyard Road in Jurong, will cater to a strong pipeline of customers for waterfront land. All the earlier offshore suppliers there have since relocated to Loyang Offshore Supply Base in the east.
Construction of the Tuas View base is slated to start this month, with the multi-million dollar project expected to be operational by end-2011.
In line with its land intensification effort, the multi-user facility will provide common waterfront and berthing facilities for O&M companies involved in the manufacturing and fabrication of heavy equipment, components and structures, a JTC spokeswoman earlier told BT.
'It is aimed at attracting new and quality types of manufacturing activities which will generate high economic value in terms of value-add and fixed asset investment,' she added.
JTC said that while companies within the O&M sector have vastly different facility requirements, the sector nevertheless 'shares certain common characteristics in terms of the space/land utilisation of its facilities, which is generally low'.
For instance, the sector commonly uses computer numerical controlled machines, which because of their weight and high-specifications require low-vibration and are usually located on ground-floor areas. Because most of their materials and products are heavy and bulky, these are also usually stored in the open or on the ground rather than stacked within warehouses.
The consultant will be required to study existing value-chain activities in O&M operations and come up with conceptual designs for each of the two industry clusters that can increase the plot ratio or reduce the land required. This includes the possibility of their having multi-tenanted buildings with shared facilities, among other solutions.
Source: Business Times, 5 Jul 2010
Thursday, July 1, 2010
Rents at ex-JTC factories could rise
RENTS at industrial properties formerly owned by JTC Corp are likely to go up from June next year once a rental rise cap is lifted and a real estate investment trust (Reit) manager takes over.
The properties are held under the Mapletree Industrial Trust, which is headed for an initial public offering, possibly by the end of the year. Reits collect rent from tenants of the properties they own and pay most of it as dividends to unit holders.
Mapletree Investments, which bought the properties in 2008, had to face unhappy tenants struggling with soaring rents last year. Many had petitioned Mapletree for hefty rent cuts to cope with the tough market conditions then. Most of all, they were upset at having missed out on a 15 per cent rental rebate granted by JTC as part of the Government's Resilience Package.
Many are small and medium-sized enterprises occupying the cheapest of the ex-JTC factories. And JTC rents are generally below market rates.
Property consultants had said that they cannot expect Mapletree to offer them the same low rates.
In any case, Mapletree had said that 1,448 of the industrial trust's flatted and stack-up factories, as well as warehouses, would benefit from a 5 per cent rental cap - of JTC's rent in July 2007 - when they renewed their leases before this month.
There is no cap for the remaining 108 - 7 per cent of the total - tenants in its business park buildings.
Mapletree Investments' chief executive (Industrial) Phua Kok Kim said yesterday it has stuck to the rental cap. He said new tenants are signing leases at higher rates, which shows that the properties are 'under-rented and there is potential for organic growth'.
But any rise is likely to be gradual, said Mapletree group chief financial officer Wong Mun Hoong.
Mr Phua added: 'All our rents are subject to competitive market forces of supply and demand, so even when the rental cap of 5 per cent is lifted for non-business park space, the renewal rents will still be subject to market forces.'
Source: Straits Times, 1 Jul 2010
The properties are held under the Mapletree Industrial Trust, which is headed for an initial public offering, possibly by the end of the year. Reits collect rent from tenants of the properties they own and pay most of it as dividends to unit holders.
Mapletree Investments, which bought the properties in 2008, had to face unhappy tenants struggling with soaring rents last year. Many had petitioned Mapletree for hefty rent cuts to cope with the tough market conditions then. Most of all, they were upset at having missed out on a 15 per cent rental rebate granted by JTC as part of the Government's Resilience Package.
Many are small and medium-sized enterprises occupying the cheapest of the ex-JTC factories. And JTC rents are generally below market rates.
Property consultants had said that they cannot expect Mapletree to offer them the same low rates.
In any case, Mapletree had said that 1,448 of the industrial trust's flatted and stack-up factories, as well as warehouses, would benefit from a 5 per cent rental cap - of JTC's rent in July 2007 - when they renewed their leases before this month.
There is no cap for the remaining 108 - 7 per cent of the total - tenants in its business park buildings.
Mapletree Investments' chief executive (Industrial) Phua Kok Kim said yesterday it has stuck to the rental cap. He said new tenants are signing leases at higher rates, which shows that the properties are 'under-rented and there is potential for organic growth'.
But any rise is likely to be gradual, said Mapletree group chief financial officer Wong Mun Hoong.
Mr Phua added: 'All our rents are subject to competitive market forces of supply and demand, so even when the rental cap of 5 per cent is lifted for non-business park space, the renewal rents will still be subject to market forces.'
Source: Straits Times, 1 Jul 2010
Wednesday, June 30, 2010
MTI offers 10 industrial sites for sale
The plots, with total area of 19.92 ha, will be sold on 30, 45 or 60-year leases
THE Ministry of Trade and Industry (MTI) is offering 10 industrial plots for sale under the second-half 2010 industrial government land sales programme.
The plots, with a total land area of 19.92 ha, comprise three sites on the confirmed list and seven on the reserve list.
Five of the 10 sites are new - a 4.65 ha plot at Yishun Street 23/Yishun Avenue 9 on the confirmed list and plots at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62 on the reserve list. The rest are being rolled over from the H1 2010 reserve list.
The government will sell all the plots on leases of 30, 45 or 60 years.
Colliers International director (industrial) Tan Boon Leong noted that all three plots on the confirmed list are zoned Business 2 use. 'This will cater to strong demand for such sites as seen in the high number of bids for B2 land parcels last year.'
Sites zoned Business 2 can be put to a wider range of industrial use whereas Business 1 land is for clean and light use only.
Mr Tan highlighted the new reserve list plot at Tuas View Square as being relatively small for an industrial plot at just 0.44 ha and the Ang Mo Kio Street 62 site as the first plot the government has offered in Ang Mo Kio through its industrial land sales programme.
He also reckons that industrial land bids are likely to moderate in the second half of this year given the spread of sites that the government is offering.
Sites on the confirmed list are launched for tender according to a schedule. Reserve list sites are released only upon application by bidders.
In the first half of this year, the government also offered 10 industrial sites - two on the confirmed list and eight on the reserve list. Three of the reserve list sites were sold; they are located at Woodlands Avenue 12 and Yishun Avenue 6 (parcels 1 and 8).
The remaining five reserve sites have been rolled over to the H2 slate - two in the confirmed list and three in the reserve list.
Source: Business Times, 30 Jun 2010
THE Ministry of Trade and Industry (MTI) is offering 10 industrial plots for sale under the second-half 2010 industrial government land sales programme.
The plots, with a total land area of 19.92 ha, comprise three sites on the confirmed list and seven on the reserve list.
Five of the 10 sites are new - a 4.65 ha plot at Yishun Street 23/Yishun Avenue 9 on the confirmed list and plots at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62 on the reserve list. The rest are being rolled over from the H1 2010 reserve list.
The government will sell all the plots on leases of 30, 45 or 60 years.
Colliers International director (industrial) Tan Boon Leong noted that all three plots on the confirmed list are zoned Business 2 use. 'This will cater to strong demand for such sites as seen in the high number of bids for B2 land parcels last year.'
Sites zoned Business 2 can be put to a wider range of industrial use whereas Business 1 land is for clean and light use only.
Mr Tan highlighted the new reserve list plot at Tuas View Square as being relatively small for an industrial plot at just 0.44 ha and the Ang Mo Kio Street 62 site as the first plot the government has offered in Ang Mo Kio through its industrial land sales programme.
He also reckons that industrial land bids are likely to moderate in the second half of this year given the spread of sites that the government is offering.
Sites on the confirmed list are launched for tender according to a schedule. Reserve list sites are released only upon application by bidders.
In the first half of this year, the government also offered 10 industrial sites - two on the confirmed list and eight on the reserve list. Three of the reserve list sites were sold; they are located at Woodlands Avenue 12 and Yishun Avenue 6 (parcels 1 and 8).
The remaining five reserve sites have been rolled over to the H2 slate - two in the confirmed list and three in the reserve list.
Source: Business Times, 30 Jun 2010
MTI launches industrial land sales for H2
Total site area of 19.92 ha up for grabs
The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales programme for the second half of 2010.
There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.
The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the plot at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.
MTI will also introduce four new sites on the Reserve List at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.
In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.
Source: Today, 30 Jun 2010
The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales programme for the second half of 2010.
There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.
The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the plot at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.
MTI will also introduce four new sites on the Reserve List at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.
In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.
Source: Today, 30 Jun 2010
Tuesday, June 29, 2010
Industrial rents creep up in first rise since Q3 '08
RENTS for factories and warehouses turned around in the second quarter, rising for the first time since Q3 2008, DTZ said yesterday.
The property consultancy said the average monthly gross rent for first-storey private conventional industrial space was $2 per sq ft in Q2, up 2.6 per cent from Q1. The rent for upper-storey space was $1.60 psf, up 3.2 per cent.
According to DTZ, the average monthly gross rents for first and upper-storey private industrial space are down 14.9 and 22 per cent respectively from their peaks in Q3 2008.
Colliers International's director (industrial) Tan Boon Leong also said rents for factories and warehouses edged up in Q2. 'This is in line with the increase in factory orders, which in turn led to higher demand for industrial space,' he said.
In May, Singapore's manufacturing output surged 58.6 per cent year on year, driven largely by higher biomedical output.
Greater demand for industrial space has come mainly from higher-end manufacturers such as those in electronics and precision engineering, Mr Tan said.
He believes factory and warehouse rents will continue to rise in small steps this year, as manufacturers still need to utilise excess capacity carried over from the downturn.
DTZ has a similar view. 'Industrial rents are likely to continue to increase but at a slow pace given the stream of about 15 million sq ft of private industrial space in the pipeline over the next one and a half years,' said its South-east Asia research head Chua Chor Hoon.
The outlook for hi-tech industrial space is less bright. In Q2, the average monthly gross rent for business, science park and other space in this sector was unchanged at $3.15 psf.
DTZ does not expect hi-tech rents to move much this year, with a significant amount of business park space expected to come on stream in the second half.
There will also be competition for tenants from commercial space in secondary locations, said DTZ's executive director (business space) Cheng Siow Ying. 'The narrow rental gap between decentralised offices and hi-tech industrial space provides little impetus for upward movement of hi-tech industrial rents.'
Source: Business Times, 29 Jun 2010
The property consultancy said the average monthly gross rent for first-storey private conventional industrial space was $2 per sq ft in Q2, up 2.6 per cent from Q1. The rent for upper-storey space was $1.60 psf, up 3.2 per cent.
According to DTZ, the average monthly gross rents for first and upper-storey private industrial space are down 14.9 and 22 per cent respectively from their peaks in Q3 2008.
Colliers International's director (industrial) Tan Boon Leong also said rents for factories and warehouses edged up in Q2. 'This is in line with the increase in factory orders, which in turn led to higher demand for industrial space,' he said.
In May, Singapore's manufacturing output surged 58.6 per cent year on year, driven largely by higher biomedical output.
Greater demand for industrial space has come mainly from higher-end manufacturers such as those in electronics and precision engineering, Mr Tan said.
He believes factory and warehouse rents will continue to rise in small steps this year, as manufacturers still need to utilise excess capacity carried over from the downturn.
DTZ has a similar view. 'Industrial rents are likely to continue to increase but at a slow pace given the stream of about 15 million sq ft of private industrial space in the pipeline over the next one and a half years,' said its South-east Asia research head Chua Chor Hoon.
The outlook for hi-tech industrial space is less bright. In Q2, the average monthly gross rent for business, science park and other space in this sector was unchanged at $3.15 psf.
DTZ does not expect hi-tech rents to move much this year, with a significant amount of business park space expected to come on stream in the second half.
There will also be competition for tenants from commercial space in secondary locations, said DTZ's executive director (business space) Cheng Siow Ying. 'The narrow rental gap between decentralised offices and hi-tech industrial space provides little impetus for upward movement of hi-tech industrial rents.'
Source: Business Times, 29 Jun 2010
Govt launches industrial land sales programme for 2H10
The Ministry of Trade and Industry (MTI) has launched its Industrial Government Land Sales programme for the second half of 2010.
There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.
The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the site at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.
MTI will also introduce four new sites on the Reserve List, at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.
In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.
Source: Channel News Asia, 29 Jun 2010
There will be three sites in the Confirmed List and seven sites in the Reserve List, with a total site area of 19.92 hectares.
The three sites on the Confirmed List are at Kaki Bukit Avenue 4, the site at the junction of Yishun Street 23 and Yishun Avenue 9, and the land parcel at the junction of Old Toh Tuck Road and Toh Tuck Avenue.
MTI will also introduce four new sites on the Reserve List, at Woodlands Avenue 12, Tuas View Square, Kaki Bukit Road 4 and Ang Mo Kio Street 62.
In addition, three sites from the first half of the 2010 Reserve List will be carried forward to the second half of the year.
Source: Channel News Asia, 29 Jun 2010
Monday, June 28, 2010
Industrial rents rise for first time since falling from peak in Q3 2008
Rents for industrial space rose for the first time after falling from its peak in the third quarter of 2008.
According to DTZ Research, average monthly rents of first-storey private industrial space rose 2.6 per cent quarter-on-quarter to S$2 per square foot, while upper-storey space rose 3.2 per cent quarter-on-quarter to S$1.60 per square foot per month.
Rents for hi-tech industrial properties, however, were unchanged at S$3.15 per square foot per month in the second quarter of this year.
According to Chua Chor Hoon, head of DTZ’s Southeast Asia Research, industrial rents are likely to continue to rise but at a slow pace given the stream of private industrial space coming onboard within the next 18 months.
However, hi-tech rents are expected to be largely unchanged due to a large amount of business park developments expected to be completed in the second half of the year.
Source: Channel News Asia, 28 Jun 2010
According to DTZ Research, average monthly rents of first-storey private industrial space rose 2.6 per cent quarter-on-quarter to S$2 per square foot, while upper-storey space rose 3.2 per cent quarter-on-quarter to S$1.60 per square foot per month.
Rents for hi-tech industrial properties, however, were unchanged at S$3.15 per square foot per month in the second quarter of this year.
According to Chua Chor Hoon, head of DTZ’s Southeast Asia Research, industrial rents are likely to continue to rise but at a slow pace given the stream of private industrial space coming onboard within the next 18 months.
However, hi-tech rents are expected to be largely unchanged due to a large amount of business park developments expected to be completed in the second half of the year.
Source: Channel News Asia, 28 Jun 2010
Tuesday, June 22, 2010
Getting closer to the water
JTC is working on innovative ways to create new waterfront resources
SINGAPORE wants to maintain its leadership position on the global marine and offshore landscape. And with this in mind, the city-state is meeting a key challenge - the scarcity of waterfront land - head on.
Industrial landlord JTC has been looking at innovative ways to create new waterfront resources. And through its efforts, the government agency plans to ensure the continued growth of the offshore and marine sector by bringing in new waterfront activities and allowing for expansion by existing players.
Singapore has been a big beneficiary of the strong worldwide high growth of the offshore and marine industry in recent years. An expert cluster of marine-related service companies - including those providing classification services, maritime law and insurance services and offshore support services - has developed here.
In 2008, Singapore's marine and offshore industry output grew to $18.3 billion, which represents a compound annual growth rate of almost 30 per cent over the past five years. This makes the sector one of the fastest growing parts of Singapore's economy in the past few years. The sector's value-added in 2008 was $4.5 billion and the industry employed almost 70,000 workers that year.
Over the past few years, several world class global offshore and marine companies have either set up or expanded their operations in Singapore. They include Rolls-Royce from the UK, Halliburton from the US, Berg Propulsion from Sweden and Toll Offshore Petroleum Services from Australia.
Just a few months ago, Houston-based engineering Dril-Quip said it would develop a new $45.6 million facility at Tuas. this will handle all of the company's manufacturing operations for the Asia-Pacific and Middle East.
To support these and other global companies in their Singapore ventures, Singapore plans to sharpen its competitive advantages to entrench itself as an offshore and marine hub of choice.
JTC chief executive Manohar Khiatani said during the ground-breaking ceremony for the Dril-Quip facility that given the importance of the offshore and marine sector, all relevant government agencies - the Economic Development Board, Spring, the Agency for Science, Technology and Research and JTC - have been working together to grow the industry in Singapore.
This includes continuing to attract expert players to set up here and channelling investments and resources to develop the entire value chain, which ranges from shipyards and component manufacturing to companies offering naval architecture and marine engineering services.
And in addition to all this, JTC is looking to address Singapore's ever-present problem - a shortage of land.
'For its part, JTC has been looking at innovative infrastructural solutions to overcome some key challenges faced by the industry,' Mr Khiatani said. 'One of these is to come up with innovative ways to overcome the scarcity of waterfront land in Singapore.'
The agency is creating resources such as a new offshore marine centre, multi-vessel berthing structures and an integrated shipyard. It is also finding new waterfront land for industrial use.
Offshore marine centre
JTC is developing an offshore marine centre at a 13-hectare site in Tuas View. The multi-user facility will provide common waterfront and berthing facilities for offshore and marine companies involved in the manufacturing and fabrication of heavy equipment, components or structures. This will come in handy, as demand for such facilities is growing, market watchers say.
Multi-vessels berthing structures
JTC is also looking at redesigning Singapore's jetties to allow more vessels to berth along the same waterfront length.
The current system of using tugs for side-berthing will be replaced by a trolley and winch system to berth ships. This means that there will not be a need to provide navigational space for tug-boats, which JTC says can increase berth space along a waterfront by between 25 and 50 per cent.
'The project will increase our potential to attract key investors from the oil and petrochemical industries who require waterfront infrastructure to support their business operations, thus strengthening Singapore's position as a leading oil trading hub,' JTC said.
Integrated yard facility
Singapore's marine and offshore industry took a major step forward with the announcement in late 2009 that Sembcorp Marine will build an integrated yard at Tuas - the country's first new-built yard in a generation.
The first phase of the 206 ha state-of-the-art yard is expected to cost about $750 million and to be completed by 2013.
The yard will boast a revolutionary design as well as the latest production technology and processes. As a result, land use will be optimised and supply-chain efficiency will be improved - achieving a jump in productivity, resource optimisation and operational synergy.
'This first integrated yard is another example of how Singapore plans to stay at the forefront of the marine and offshore industry,' said EDB chairman Leo Yip. 'It will sharpen our competitive edge and reinforce our global leadership position in this industry.'
The increased flexibility that will come from cross-deploying workers and allowing them to multi-task will also improve and upgrade the quality of the work force here, JTC and EDB said.
Development of the 73.3 ha first phase of the yard will start next month and is expected to take four years. The remainder of the site will be developed in two more phases over 12 years.
When completed, the new yard will increase total dock capacity 62 per cent to 3.08 million deadweight tonnes (dwt), from 1.90 million dwt now, and will feature optimised docking and berthing facilities. An improved dock and quay ratio will ensure effective utilisation and faster turnaround for repairs and upgrading of ships, rigs and other floating structures.
The first phase will more than triple the land area from the current 20 ha, almost quadruple drydock capacity to 1.55 million dwt from the current 400,000 dwt and boost quay length almost three-and-a-half times from 1,071 to 3,408 metres.
Integrated facilities and newer technology will make the yard more efficient and productive, which will boost capacity and profitability, according to Sembcorp Marine president and chief executive Wong Weng Sun.
Mr Wong also expects productivity at the new yard to increase at least 15-20 per cent.
Utilising currently non-usable waterfront land
JTC has also earmarked a 40 ha site with around a kilometre of water frontage at Tuas West for future stock. Although the water depth here is only one to 3 metres - making it unsuitable for industrial activity - JTC is looking at the feasibility of improving this.
Looking ahead, land supply will continue to be a challenge to Singapore, JTC says.
And while land scarcity here is not new, the nature of the challenges faced by the agency has changed, which means it will work to come up with new solutions for the growing marine and offshore sector.
Source: Business Times, 22 Jun 2010
SINGAPORE wants to maintain its leadership position on the global marine and offshore landscape. And with this in mind, the city-state is meeting a key challenge - the scarcity of waterfront land - head on.
Industrial landlord JTC has been looking at innovative ways to create new waterfront resources. And through its efforts, the government agency plans to ensure the continued growth of the offshore and marine sector by bringing in new waterfront activities and allowing for expansion by existing players.
Singapore has been a big beneficiary of the strong worldwide high growth of the offshore and marine industry in recent years. An expert cluster of marine-related service companies - including those providing classification services, maritime law and insurance services and offshore support services - has developed here.
In 2008, Singapore's marine and offshore industry output grew to $18.3 billion, which represents a compound annual growth rate of almost 30 per cent over the past five years. This makes the sector one of the fastest growing parts of Singapore's economy in the past few years. The sector's value-added in 2008 was $4.5 billion and the industry employed almost 70,000 workers that year.
Over the past few years, several world class global offshore and marine companies have either set up or expanded their operations in Singapore. They include Rolls-Royce from the UK, Halliburton from the US, Berg Propulsion from Sweden and Toll Offshore Petroleum Services from Australia.
Just a few months ago, Houston-based engineering Dril-Quip said it would develop a new $45.6 million facility at Tuas. this will handle all of the company's manufacturing operations for the Asia-Pacific and Middle East.
To support these and other global companies in their Singapore ventures, Singapore plans to sharpen its competitive advantages to entrench itself as an offshore and marine hub of choice.
JTC chief executive Manohar Khiatani said during the ground-breaking ceremony for the Dril-Quip facility that given the importance of the offshore and marine sector, all relevant government agencies - the Economic Development Board, Spring, the Agency for Science, Technology and Research and JTC - have been working together to grow the industry in Singapore.
This includes continuing to attract expert players to set up here and channelling investments and resources to develop the entire value chain, which ranges from shipyards and component manufacturing to companies offering naval architecture and marine engineering services.
And in addition to all this, JTC is looking to address Singapore's ever-present problem - a shortage of land.
'For its part, JTC has been looking at innovative infrastructural solutions to overcome some key challenges faced by the industry,' Mr Khiatani said. 'One of these is to come up with innovative ways to overcome the scarcity of waterfront land in Singapore.'
The agency is creating resources such as a new offshore marine centre, multi-vessel berthing structures and an integrated shipyard. It is also finding new waterfront land for industrial use.
Offshore marine centre
JTC is developing an offshore marine centre at a 13-hectare site in Tuas View. The multi-user facility will provide common waterfront and berthing facilities for offshore and marine companies involved in the manufacturing and fabrication of heavy equipment, components or structures. This will come in handy, as demand for such facilities is growing, market watchers say.
Multi-vessels berthing structures
JTC is also looking at redesigning Singapore's jetties to allow more vessels to berth along the same waterfront length.
The current system of using tugs for side-berthing will be replaced by a trolley and winch system to berth ships. This means that there will not be a need to provide navigational space for tug-boats, which JTC says can increase berth space along a waterfront by between 25 and 50 per cent.
'The project will increase our potential to attract key investors from the oil and petrochemical industries who require waterfront infrastructure to support their business operations, thus strengthening Singapore's position as a leading oil trading hub,' JTC said.
Integrated yard facility
Singapore's marine and offshore industry took a major step forward with the announcement in late 2009 that Sembcorp Marine will build an integrated yard at Tuas - the country's first new-built yard in a generation.
The first phase of the 206 ha state-of-the-art yard is expected to cost about $750 million and to be completed by 2013.
The yard will boast a revolutionary design as well as the latest production technology and processes. As a result, land use will be optimised and supply-chain efficiency will be improved - achieving a jump in productivity, resource optimisation and operational synergy.
'This first integrated yard is another example of how Singapore plans to stay at the forefront of the marine and offshore industry,' said EDB chairman Leo Yip. 'It will sharpen our competitive edge and reinforce our global leadership position in this industry.'
The increased flexibility that will come from cross-deploying workers and allowing them to multi-task will also improve and upgrade the quality of the work force here, JTC and EDB said.
Development of the 73.3 ha first phase of the yard will start next month and is expected to take four years. The remainder of the site will be developed in two more phases over 12 years.
When completed, the new yard will increase total dock capacity 62 per cent to 3.08 million deadweight tonnes (dwt), from 1.90 million dwt now, and will feature optimised docking and berthing facilities. An improved dock and quay ratio will ensure effective utilisation and faster turnaround for repairs and upgrading of ships, rigs and other floating structures.
The first phase will more than triple the land area from the current 20 ha, almost quadruple drydock capacity to 1.55 million dwt from the current 400,000 dwt and boost quay length almost three-and-a-half times from 1,071 to 3,408 metres.
Integrated facilities and newer technology will make the yard more efficient and productive, which will boost capacity and profitability, according to Sembcorp Marine president and chief executive Wong Weng Sun.
Mr Wong also expects productivity at the new yard to increase at least 15-20 per cent.
Utilising currently non-usable waterfront land
JTC has also earmarked a 40 ha site with around a kilometre of water frontage at Tuas West for future stock. Although the water depth here is only one to 3 metres - making it unsuitable for industrial activity - JTC is looking at the feasibility of improving this.
Looking ahead, land supply will continue to be a challenge to Singapore, JTC says.
And while land scarcity here is not new, the nature of the challenges faced by the agency has changed, which means it will work to come up with new solutions for the growing marine and offshore sector.
Source: Business Times, 22 Jun 2010
Tuesday, June 15, 2010
An icon for clean technology
Singapore's first business park catering to green companies will serve as a large-scale 'living laboratory' for testing and demonstrating clean technology
JTC is changing the approach to urban development and master planning with its CleanTech Park - Singapore's first business park catering to green companies.
The 50-ha eco-business park at Nanyang Avenue is pitched as the location of choice for forward-looking companies that have embraced environmental sustainability. Joint developers JTC and the Economic Development Board hope the project will push the boundaries of sustainability by serving as a large-scale 'living laboratory' for testing and demonstrating clean technology.
When completed in 2030, the park will create 20,000 'green-collar' jobs. It will be built in three phases at an infrastructure cost of $52 million, excluding buildings.
CleanTech Park will be an icon for the development and application of clean technologies, and JTC will push the envelope in a 'practical and cost-effective way', says the industrial landlord's chief executive Manohar Khiatani.
'As an infrastructural solutions provider, JTC has always placed priority on developing innovative and sustainable real estate solutions to meet the needs of our customers operating in resource-challenged Singapore,' he says.
Work on the first phase of the project begins next month, starting with the development of infrastructure within CleanTech Park. When completed, phase one will provide about 17 ha of business park land.
The blueprint for the first cutting-edge building in the park was recently unveiled by JTC. The $90 million building - CleanTech One - will offer about 404,000 sq ft of office space that can house up to 50 green businesses when it is completed by December next year.
The building will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction.
Urban modelling
JTC's master plan for CleanTech Park uses information that has been collected about the site and takes into account such factors as solar exposure, rainfall, prevailing wind, topography and vegetation density.
The agency used a modelling tool from a consultancy - Camp, Dresser and McKee or CDM - to help design the urban fabric, so the project can make the most of the natural elements.
CleanTech Park will go up on a large contiguous greenfield site with natural undulating terrain and mature greenery with natural streams running through it.
In drawing up the masterplan using urban modelling, strong emphasis was placed on finding a long-term sustainable balance between the development's commercial needs and the site's natural bio-diversity. For example, in the interest of landscape conservation, a minimal 'land-cut' principle was adopted for both infrastructure planning and at individual land parcel and building level.
One of the innovative ideas that will be tested in CleanTech Park is JTC's sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance 'walkability' in the area.
Eco-concrete - instead of natural aggregates and sand - will be used for non-structural elements such as roads, pavements and drains.
CleanTech Park will also be the first large scale project to light roads with LED street lamps. By replacing the usual street lighting, light pollution can be minimised and energy consumption can be reduced as much as 40 per cent, JTC says.
Provisions to link buildings with an integrated 'smart dashboard' system will also be in place, so energy and water use can be compared at district-level. This will provide feedback to individual building owners and their tenants so they can improve if needed.
Another innovative solution by JTC is decentralised district cooling. This means excess air-conditioning capacity from a group of buildings may be able to power the air-conditioning for another building. In line with this, piping that can link chilled water from one building to another will be constructed as part of the infrastructure to support such a system.
CleanTech One, the the first building in CleanTech Park, will also have its own green features.
Innovative technological applications at CleanTech One will include an integrated hydrogen fuel cell plant using bio-fuels to produce hydrogen on-site to drive fuel cells, which in turn produce renewable energy.
A bio-digester will also be installed. With the help of micro-organisms, food waste will quickly decomposed in the bio-digester - removing odour and leaving water and carbon dioxide as end-products.
Energy from the sun will be harnessed directly to power the air-conditioner chillers. This method is more efficient than converting solar energy to electricity before use, JTC says. Solar panels will also be used.
Demand for green space
Real estate space with a 'green' proposition is starting to attract more interest among prospective tenants - which is good news for CleanTech Park and its buildings.
'Companies are increasingly interested in commercial and research space that is eco-friendly,' says EDB managing director Beh Swan Gin. 'CleanTech Park will offer these progressive investors an attractive option and foster the clustering of like-minded companies in one location.'
JTC's Mr Khiatani says similarly that environmental sustainability will be a 'natural direction' for businesses to take in the future. He adds: 'CleanTech Park will be emblematic of how businesses can achieve both economic vibrancy and environmental sustainability, functioning in harmony with nature.'
Independent data supports these claims. A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle, conducted late last year, showed corporate real estate executives are willing to invest in the sustainability of the space they own, despite economic pressures.
The survey found 89 per cent of these executives worldwide consider sustainability criteria in their location decisions. Green building certification is always considered by 41 per cent and energy labels by 46 per cent in administering their portfolios.
More stakeholders are also beginning to take a more holistic approach to doing business, which means they factor in the social and environmental effects of their business decisions.
In fact, CleanTech Park has already attracted some interest from tenants. Nanyang Technological University (NTU) has signed on to become the first anchor tenant. The university will help seed research and development activity at the park.
NTU has said that having CleanTech Park next to the university is significant, as it will help academics work seamlessly with key industry partners in the park and allow NTU students to gain invaluable opportunities for attachment and hands-on experience in state-of-the-art green technologies.
EDB likewise thinks CleanTech Park's tenants will benefit from the proximity to NTU, which could promote cross-fertilisation of knowledge and ideas to facilitate the development and demonstration of systems-level cleantech solutions.
The Singapore government is committed to growing the cleantech industry as a key cluster. The sector is expected to contribute some $3.4 billion to Singapore's GDP and employ 18,000 people by 2015.
CleanTech Park, in particular, is poised to boost Singapore's leadership position as an innovative CleanTech hub, EDB and JTC have said.
Source: Business Times, 15 Jun 2010
JTC is changing the approach to urban development and master planning with its CleanTech Park - Singapore's first business park catering to green companies.
The 50-ha eco-business park at Nanyang Avenue is pitched as the location of choice for forward-looking companies that have embraced environmental sustainability. Joint developers JTC and the Economic Development Board hope the project will push the boundaries of sustainability by serving as a large-scale 'living laboratory' for testing and demonstrating clean technology.
When completed in 2030, the park will create 20,000 'green-collar' jobs. It will be built in three phases at an infrastructure cost of $52 million, excluding buildings.
CleanTech Park will be an icon for the development and application of clean technologies, and JTC will push the envelope in a 'practical and cost-effective way', says the industrial landlord's chief executive Manohar Khiatani.
'As an infrastructural solutions provider, JTC has always placed priority on developing innovative and sustainable real estate solutions to meet the needs of our customers operating in resource-challenged Singapore,' he says.
Work on the first phase of the project begins next month, starting with the development of infrastructure within CleanTech Park. When completed, phase one will provide about 17 ha of business park land.
The blueprint for the first cutting-edge building in the park was recently unveiled by JTC. The $90 million building - CleanTech One - will offer about 404,000 sq ft of office space that can house up to 50 green businesses when it is completed by December next year.
The building will incorporate state-of-the-art green features such as solar energy systems, rainwater harvesting, sky gardens and sustainable construction.
Urban modelling
JTC's master plan for CleanTech Park uses information that has been collected about the site and takes into account such factors as solar exposure, rainfall, prevailing wind, topography and vegetation density.
The agency used a modelling tool from a consultancy - Camp, Dresser and McKee or CDM - to help design the urban fabric, so the project can make the most of the natural elements.
CleanTech Park will go up on a large contiguous greenfield site with natural undulating terrain and mature greenery with natural streams running through it.
In drawing up the masterplan using urban modelling, strong emphasis was placed on finding a long-term sustainable balance between the development's commercial needs and the site's natural bio-diversity. For example, in the interest of landscape conservation, a minimal 'land-cut' principle was adopted for both infrastructure planning and at individual land parcel and building level.
One of the innovative ideas that will be tested in CleanTech Park is JTC's sky trellis concept. Trellises will be constructed between adjacent buildings and covered with plants to provide shade and enhance 'walkability' in the area.
Eco-concrete - instead of natural aggregates and sand - will be used for non-structural elements such as roads, pavements and drains.
CleanTech Park will also be the first large scale project to light roads with LED street lamps. By replacing the usual street lighting, light pollution can be minimised and energy consumption can be reduced as much as 40 per cent, JTC says.
Provisions to link buildings with an integrated 'smart dashboard' system will also be in place, so energy and water use can be compared at district-level. This will provide feedback to individual building owners and their tenants so they can improve if needed.
Another innovative solution by JTC is decentralised district cooling. This means excess air-conditioning capacity from a group of buildings may be able to power the air-conditioning for another building. In line with this, piping that can link chilled water from one building to another will be constructed as part of the infrastructure to support such a system.
CleanTech One, the the first building in CleanTech Park, will also have its own green features.
Innovative technological applications at CleanTech One will include an integrated hydrogen fuel cell plant using bio-fuels to produce hydrogen on-site to drive fuel cells, which in turn produce renewable energy.
A bio-digester will also be installed. With the help of micro-organisms, food waste will quickly decomposed in the bio-digester - removing odour and leaving water and carbon dioxide as end-products.
Energy from the sun will be harnessed directly to power the air-conditioner chillers. This method is more efficient than converting solar energy to electricity before use, JTC says. Solar panels will also be used.
Demand for green space
Real estate space with a 'green' proposition is starting to attract more interest among prospective tenants - which is good news for CleanTech Park and its buildings.
'Companies are increasingly interested in commercial and research space that is eco-friendly,' says EDB managing director Beh Swan Gin. 'CleanTech Park will offer these progressive investors an attractive option and foster the clustering of like-minded companies in one location.'
JTC's Mr Khiatani says similarly that environmental sustainability will be a 'natural direction' for businesses to take in the future. He adds: 'CleanTech Park will be emblematic of how businesses can achieve both economic vibrancy and environmental sustainability, functioning in harmony with nature.'
Independent data supports these claims. A global survey on corporate real estate and sustainability by CoreNet Global and Jones Lang LaSalle, conducted late last year, showed corporate real estate executives are willing to invest in the sustainability of the space they own, despite economic pressures.
The survey found 89 per cent of these executives worldwide consider sustainability criteria in their location decisions. Green building certification is always considered by 41 per cent and energy labels by 46 per cent in administering their portfolios.
More stakeholders are also beginning to take a more holistic approach to doing business, which means they factor in the social and environmental effects of their business decisions.
In fact, CleanTech Park has already attracted some interest from tenants. Nanyang Technological University (NTU) has signed on to become the first anchor tenant. The university will help seed research and development activity at the park.
NTU has said that having CleanTech Park next to the university is significant, as it will help academics work seamlessly with key industry partners in the park and allow NTU students to gain invaluable opportunities for attachment and hands-on experience in state-of-the-art green technologies.
EDB likewise thinks CleanTech Park's tenants will benefit from the proximity to NTU, which could promote cross-fertilisation of knowledge and ideas to facilitate the development and demonstration of systems-level cleantech solutions.
The Singapore government is committed to growing the cleantech industry as a key cluster. The sector is expected to contribute some $3.4 billion to Singapore's GDP and employ 18,000 people by 2015.
CleanTech Park, in particular, is poised to boost Singapore's leadership position as an innovative CleanTech hub, EDB and JTC have said.
Source: Business Times, 15 Jun 2010
Tuesday, June 8, 2010
Pushing the envelope in land use
JTC is taking a multi-pronged approach, exploring edgy ideas and methods for industrial land development
A 'SHIP to showroom' warehouse with a retail complex at one of Singapore's harbours. A recycling industrial park. A giant hoisting system to move bulky goods to companies on high floors. These are just some ground-breaking structures that Singapore could soon have as JTC explores cutting edge ideas and unconventional methods to intensify the use of industrial land.
And in the process, the industrial landlord could very well push boundaries to create new industrial standards.
'Right now, industrial land sites in Singapore usually have a maximum gross plot ratio of 2-2.5. We want to increase the plot ratio to 4-5 in future for specific industrial plots,' said Koh Chwee, director of JTC's engineering planning division said.
'We have a multi-pronged approach in maximising the limited land resources we have in Singapore. One method is to build industrial complexes with high plot ratios that are also sustainable in the long run.'
All of the ideas being tossed around now will intensify land use. The giant hoisting system, for example, will allow developers to build taller industrial facilities and intensify land use by at least 20 per cent. Another idea, which looks at housing factories, warehouses and workers' dormitories in a single complex, could cut land take-up by about 35 per cent with shared driveways and fewer setbacks.
Megastructures
JTC staff got the idea for the first concept - a cluster industrial complex with mega hoist - from looking at how cranes at ports work. They came up with a design that incorporates a huge hoist in the middle of a complex. Factories can occupy one side of the complex and warehouses the other, sharing the hoist and loading bay for moving goods.
The complex could be five storeys, with a plot ratio of 2.5 - about 25 per cent higher than the plot ratios for comparable stack-up factories. And because there is no need for a vehicle ramp for trucks to transport goods to higher floors, the design saves up to 0.5 ha of land area.
The second design is based on a 'plug-and-play' concept. A row of warehouses, logistics facilities, car parks and other amenities will form a central 'spine'. Flatted factories and workers' dormitories will be built on top of this spine.
Industrialists can then 'plug in' to this spine by building their own modular factories along it. At the same time, they can share car parks, access ways for moving goods and other amenities.
Locating various facilities together means less space needs to be set aside for internal driveways and setbacks. This complex can have a plot ratio of 1.5, almost double the 0.85 for a comparable standard factory today.
In addition to drawing on its own reserves JTC is also looking at ideas from the private sector and academic institutions in a bid to make more efficient use of Singapore's limited land.
The agency is working with the Centre of Design Research from the National University of Singapore's Department of Architecture to fund a project for students to come up with designs for sustainable industrial complexes with high plot ratios.
To date, several innovative ideas have already been mooted. And even though there is still a fair bit of work to be done before any of the ideas can be implemented, they have the seeds of great potential, JTC said.
One such idea deals with building a new mega scaffolding structure over an existing development. A site in Jurong Industrial Estate is being considered for this and JTC hopes to develop a vibrant high plot ratio industrial complex with green features.
In the blueprint, amenities such as cafeterias, commercial outlets, business centres and outdoor green areas will be interspersed between the first two layers of factory spaces.
The top-most layer of the mega scaffold will have winches and gantry cranes to support warehousing and industrial operations within the complex. The overhead machinery will reduce the need for vehicular ramp access from roadways at ground level. Containers can then be loaded and/or unloaded at dedicated loading and unloading bays at the ground level.
In this way, buildings on the ground could continue to operate until redevelopment into buildings with higher plot ratios in future. These buildings would also enjoy energy savings from cooling due to shielding from solar radiation, JTC said.
Yet another idea is to have a 'recycling industrial complex' to house the entire value chain of recycling businesses that could spawn an entire new industry for the manufacturing and transaction of materials and products made from recycled wastes.
A multi-storey car park without ramps could also be integrated with this complex. Cars will be conveyed by a computerised motorised lift system to various floors. In this way, the space used for ramps and driveways can be saved, and there will be low floor-to-ceiling heights since only cars will be stored. Land use is intensified as the parking capacity per plot can at least be doubled.
A third idea envisioned by NUS's Department of Architecture is a 'from ship to showroom' complex around one of Singapore's harbours - such as the port at Pasir Panjang - where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site where they can be put to other uses.
Cutting edge ideas
The complex will therefore be a novel one-stop mega container port complex where space is optimised 'at berth'. Events such as the Singapore Motorshow could then be held at the complex itself once the cars arrive by boat, which will eliminate the need to truck them to other parts of the island in order to exhibit them.
In addition, the complex could also have living quarters such as blocks of HDB flats stacked on top of the roof. This will allow the land that the complex is situated on to be put to maximum use, and residents will also be able to enjoy views of the harbour - typically enjoyed just by visitors to the port.
Seeking a new set of minds from Singapore's educated talent is one way in which JTC expands its horizon on innovative land.
It is also working to make sure that the ideas keep flowing: JTC recently took the unprecedented step of opening up its innovation 'dream fund' - created in 2004 to fund innovative projects internally - to external partners.
The agency will provide funding of up to $1 million for 'cutting edge' project proposal from the private and public sectors and academic institutions on how to intensify land use and create new industrial space.
'Innovation is a high priority for JTC and we recognise that we can increase our capacity for innovation if we pro-actively reach out to external partners,' said JTC chief executive Manohar Khiatani. 'With this initiative, we hope to seek new inspiration to complement our own ideas and boost industry research in optimising, intensifying and creating new industrial space for the advancement of the economy.'
Proposals should consider three main areas: clustering relevant industries for increased synergy; reducing land use for infrastructure, transport networks, buffer zones and other facilities; and mitigating issues relating to high-rise industrial operations such as goods handling, vibration and urban heat.
The fact that the 'dream fund' is now open to external parties underscores JTC's (and the government's) commitment to the intensification of industrial land use - in line with what was recommended by the Economic Strategies Committee in early February. The committee's report said that Singapore has to support the intensification of industrial land use as there are now greater demands on the country's limited land resources.
As the local economy recovers - and the industrial sector along with it - JTC is poised to support industrialists with these new and innovative industrial development concepts which are slated to sharpen Singapore's competitive edge in industrialisation.
Source: Business Times, 8 Jun 2010
A 'SHIP to showroom' warehouse with a retail complex at one of Singapore's harbours. A recycling industrial park. A giant hoisting system to move bulky goods to companies on high floors. These are just some ground-breaking structures that Singapore could soon have as JTC explores cutting edge ideas and unconventional methods to intensify the use of industrial land.
And in the process, the industrial landlord could very well push boundaries to create new industrial standards.
'Right now, industrial land sites in Singapore usually have a maximum gross plot ratio of 2-2.5. We want to increase the plot ratio to 4-5 in future for specific industrial plots,' said Koh Chwee, director of JTC's engineering planning division said.
'We have a multi-pronged approach in maximising the limited land resources we have in Singapore. One method is to build industrial complexes with high plot ratios that are also sustainable in the long run.'
All of the ideas being tossed around now will intensify land use. The giant hoisting system, for example, will allow developers to build taller industrial facilities and intensify land use by at least 20 per cent. Another idea, which looks at housing factories, warehouses and workers' dormitories in a single complex, could cut land take-up by about 35 per cent with shared driveways and fewer setbacks.
Megastructures
JTC staff got the idea for the first concept - a cluster industrial complex with mega hoist - from looking at how cranes at ports work. They came up with a design that incorporates a huge hoist in the middle of a complex. Factories can occupy one side of the complex and warehouses the other, sharing the hoist and loading bay for moving goods.
The complex could be five storeys, with a plot ratio of 2.5 - about 25 per cent higher than the plot ratios for comparable stack-up factories. And because there is no need for a vehicle ramp for trucks to transport goods to higher floors, the design saves up to 0.5 ha of land area.
The second design is based on a 'plug-and-play' concept. A row of warehouses, logistics facilities, car parks and other amenities will form a central 'spine'. Flatted factories and workers' dormitories will be built on top of this spine.
Industrialists can then 'plug in' to this spine by building their own modular factories along it. At the same time, they can share car parks, access ways for moving goods and other amenities.
Locating various facilities together means less space needs to be set aside for internal driveways and setbacks. This complex can have a plot ratio of 1.5, almost double the 0.85 for a comparable standard factory today.
In addition to drawing on its own reserves JTC is also looking at ideas from the private sector and academic institutions in a bid to make more efficient use of Singapore's limited land.
The agency is working with the Centre of Design Research from the National University of Singapore's Department of Architecture to fund a project for students to come up with designs for sustainable industrial complexes with high plot ratios.
To date, several innovative ideas have already been mooted. And even though there is still a fair bit of work to be done before any of the ideas can be implemented, they have the seeds of great potential, JTC said.
One such idea deals with building a new mega scaffolding structure over an existing development. A site in Jurong Industrial Estate is being considered for this and JTC hopes to develop a vibrant high plot ratio industrial complex with green features.
In the blueprint, amenities such as cafeterias, commercial outlets, business centres and outdoor green areas will be interspersed between the first two layers of factory spaces.
The top-most layer of the mega scaffold will have winches and gantry cranes to support warehousing and industrial operations within the complex. The overhead machinery will reduce the need for vehicular ramp access from roadways at ground level. Containers can then be loaded and/or unloaded at dedicated loading and unloading bays at the ground level.
In this way, buildings on the ground could continue to operate until redevelopment into buildings with higher plot ratios in future. These buildings would also enjoy energy savings from cooling due to shielding from solar radiation, JTC said.
Yet another idea is to have a 'recycling industrial complex' to house the entire value chain of recycling businesses that could spawn an entire new industry for the manufacturing and transaction of materials and products made from recycled wastes.
A multi-storey car park without ramps could also be integrated with this complex. Cars will be conveyed by a computerised motorised lift system to various floors. In this way, the space used for ramps and driveways can be saved, and there will be low floor-to-ceiling heights since only cars will be stored. Land use is intensified as the parking capacity per plot can at least be doubled.
A third idea envisioned by NUS's Department of Architecture is a 'from ship to showroom' complex around one of Singapore's harbours - such as the port at Pasir Panjang - where goods could be shipped in and stored in warehousing facilities within the complex, or delivered directly to showrooms within the site where they can be put to other uses.
Cutting edge ideas
The complex will therefore be a novel one-stop mega container port complex where space is optimised 'at berth'. Events such as the Singapore Motorshow could then be held at the complex itself once the cars arrive by boat, which will eliminate the need to truck them to other parts of the island in order to exhibit them.
In addition, the complex could also have living quarters such as blocks of HDB flats stacked on top of the roof. This will allow the land that the complex is situated on to be put to maximum use, and residents will also be able to enjoy views of the harbour - typically enjoyed just by visitors to the port.
Seeking a new set of minds from Singapore's educated talent is one way in which JTC expands its horizon on innovative land.
It is also working to make sure that the ideas keep flowing: JTC recently took the unprecedented step of opening up its innovation 'dream fund' - created in 2004 to fund innovative projects internally - to external partners.
The agency will provide funding of up to $1 million for 'cutting edge' project proposal from the private and public sectors and academic institutions on how to intensify land use and create new industrial space.
'Innovation is a high priority for JTC and we recognise that we can increase our capacity for innovation if we pro-actively reach out to external partners,' said JTC chief executive Manohar Khiatani. 'With this initiative, we hope to seek new inspiration to complement our own ideas and boost industry research in optimising, intensifying and creating new industrial space for the advancement of the economy.'
Proposals should consider three main areas: clustering relevant industries for increased synergy; reducing land use for infrastructure, transport networks, buffer zones and other facilities; and mitigating issues relating to high-rise industrial operations such as goods handling, vibration and urban heat.
The fact that the 'dream fund' is now open to external parties underscores JTC's (and the government's) commitment to the intensification of industrial land use - in line with what was recommended by the Economic Strategies Committee in early February. The committee's report said that Singapore has to support the intensification of industrial land use as there are now greater demands on the country's limited land resources.
As the local economy recovers - and the industrial sector along with it - JTC is poised to support industrialists with these new and innovative industrial development concepts which are slated to sharpen Singapore's competitive edge in industrialisation.
Source: Business Times, 8 Jun 2010
Industrial property vet returns to Colliers fold
Wilson Ang leaves Cambridge Industrial Trust Management
VETERAN industrial property consultant and former CEO of Cambridge Industrial Trust Management Wilson Ang has returned to Colliers International.
He has been appointed consultant for industrial property investment in Asia. Based in Singapore, he will be part of the Asia Industrial Services team.
His immediate focus is Greater China and India, advising building owners, private investors and funds and institutions on their real estate portfolios and helping meet their requirements across Asia, Colliers said yesterday.
Mr Ang was with Colliers for 13 years and was executive director and head of the industrial sales and leasing division when he left in 2005. During those years he was responsible for more than $1 billion of industrial investment sales.
He went on to co-found Cambridge Industrial Trust and put together a portfolio of industrial properties for its listing.
He also took the trust through the listing process and managed it post-float.
He left as Cambridge's manager last year.
Dennis Yeo, managing director of Colliers International Asia Industrial Services and Colliers International Singapore, says: 'Given Wilson's wealth of experience and strong track record in the industrial market, he will further strengthen Colliers' position ... and grow our industrial investment business.'
Mr Yeo said Mr Ang's experience as an industrial property broker, advising owners and real estate investment trusts, coupled with his experience at Cambridge, mean his services will be sought after in Greater China and India, where the Reit industry is still in its infancy.
Mr Ang, 45, has a Bachelor of Science degree, majoring in estate management from National University of Singapore.
The former Catholic High School student lists playing golf, swimming and working out at the gym and spending time with his family as his hobbies.
Source: Business Times, 8 Jun 2010
VETERAN industrial property consultant and former CEO of Cambridge Industrial Trust Management Wilson Ang has returned to Colliers International.
He has been appointed consultant for industrial property investment in Asia. Based in Singapore, he will be part of the Asia Industrial Services team.
His immediate focus is Greater China and India, advising building owners, private investors and funds and institutions on their real estate portfolios and helping meet their requirements across Asia, Colliers said yesterday.
Mr Ang was with Colliers for 13 years and was executive director and head of the industrial sales and leasing division when he left in 2005. During those years he was responsible for more than $1 billion of industrial investment sales.
He went on to co-found Cambridge Industrial Trust and put together a portfolio of industrial properties for its listing.
He also took the trust through the listing process and managed it post-float.
He left as Cambridge's manager last year.
Dennis Yeo, managing director of Colliers International Asia Industrial Services and Colliers International Singapore, says: 'Given Wilson's wealth of experience and strong track record in the industrial market, he will further strengthen Colliers' position ... and grow our industrial investment business.'
Mr Yeo said Mr Ang's experience as an industrial property broker, advising owners and real estate investment trusts, coupled with his experience at Cambridge, mean his services will be sought after in Greater China and India, where the Reit industry is still in its infancy.
Mr Ang, 45, has a Bachelor of Science degree, majoring in estate management from National University of Singapore.
The former Catholic High School student lists playing golf, swimming and working out at the gym and spending time with his family as his hobbies.
Source: Business Times, 8 Jun 2010
Friday, May 28, 2010
Industrial plot near Pioneer MRT available
THE Urban Redevelopment Authority (URA) has made a 30-year leasehold industrial site at Pioneer Road North / Soon Lee Street available for sale.
The land parcel is on the reserve list, and interested developers can ask URA to put it up for tender.
The site spans 155,427 sq ft and has a maximum gross plot ratio of 2.0. It is zoned for Business 2 use, making it suitable for clean industries and other activities such as vehicle repair and furniture production.
The land parcel is near Pioneer MRT station. It is also right next to a site which URA sold in December last year. KNG Realty beat stiff competition from seven other developers to win that site then, with a bid of $19.4 million or $48 per sq ft per plot ratio (psf ppr).
Demand for industrial sites in the last few months has been strong as the economy picked up. In April, the tender of a larger 60-year site at Woodlands Avenue 12 drew six bids, with the highest one at $65.2 million or $75 psf ppr.
Colliers International said this month that demand could grow further, as manufacturers expand their operations and institutional funds return to scout for investments. Already, the average monthly gross rent at single-user factories in the central part of Singapore has increased by 3.8 per cent to $1.35 psf between October last year and March this year. Capital values of such properties have also risen.
Source: Business Times, 28 May 2010
The land parcel is on the reserve list, and interested developers can ask URA to put it up for tender.
The site spans 155,427 sq ft and has a maximum gross plot ratio of 2.0. It is zoned for Business 2 use, making it suitable for clean industries and other activities such as vehicle repair and furniture production.
The land parcel is near Pioneer MRT station. It is also right next to a site which URA sold in December last year. KNG Realty beat stiff competition from seven other developers to win that site then, with a bid of $19.4 million or $48 per sq ft per plot ratio (psf ppr).
Demand for industrial sites in the last few months has been strong as the economy picked up. In April, the tender of a larger 60-year site at Woodlands Avenue 12 drew six bids, with the highest one at $65.2 million or $75 psf ppr.
Colliers International said this month that demand could grow further, as manufacturers expand their operations and institutional funds return to scout for investments. Already, the average monthly gross rent at single-user factories in the central part of Singapore has increased by 3.8 per cent to $1.35 psf between October last year and March this year. Capital values of such properties have also risen.
Source: Business Times, 28 May 2010
Friday, May 14, 2010
Factory rents may rise 10%: Colliers
(SINGAPORE) Rents, land values and capital values of conventional industrial space in Singapore could rise 10 per cent in the next 12 months, as the economy improves and institutional investors return, said Colliers International yesterday.
The consultancy found that the market for factories and warehouses has already picked up in the six months from October last year to March this year.
During the period, the average monthly gross rent for single-user factories in central Singapore increased by about 3.8 per cent to $1.35 per sq ft. Capital values for this type of property also inched up 3.6 per cent to $145 psf.
Separately, warehouses in the eastern part of the island saw their average monthly gross rent rise 6.7 per cent to $1.28 psf. Their capital values also went up 6.2 per cent to $138 psf.
Conditions were not as rosy for high-specification industrial developments - rents for this type of space continued to fall, albeit at a slower rate. Over the six-month period, the average monthly gross rent for high-spec space dropped 5.1 per cent to $2.78 psf.
The silver lining is that the occupancy rate for high-spec space has been stable. Colliers attributed this to firmer office rents in a recovering commercial market - this has discouraged tenants occupying high-spec space from moving back to offices.
Colliers expects the overall industrial property market here to do better as the economy continues to pick up. 'The recovery in the exports and manufacturing sector should support an expansion in demand from manufacturers,' its research and advisory director Tay Huey Ying said.
'Coupled with the return of institutional funds to the industrial market, rents, land and capital values of single-user factories and warehouses are expected to increase up to 10 per cent in the next 12 months.' Ms Tay also expects rents of high-spec space to bottom out this year.
Besides Singapore, most Asia-Pacific cities have seen their industrial property markets stabilise, Colliers noted. For instance, industrial rents in Delhi, Guangzhou, Shanghai and Hong Kong have hit the trough.
Source: Business Times, 14 May 2010
The consultancy found that the market for factories and warehouses has already picked up in the six months from October last year to March this year.
During the period, the average monthly gross rent for single-user factories in central Singapore increased by about 3.8 per cent to $1.35 per sq ft. Capital values for this type of property also inched up 3.6 per cent to $145 psf.
Separately, warehouses in the eastern part of the island saw their average monthly gross rent rise 6.7 per cent to $1.28 psf. Their capital values also went up 6.2 per cent to $138 psf.
Conditions were not as rosy for high-specification industrial developments - rents for this type of space continued to fall, albeit at a slower rate. Over the six-month period, the average monthly gross rent for high-spec space dropped 5.1 per cent to $2.78 psf.
The silver lining is that the occupancy rate for high-spec space has been stable. Colliers attributed this to firmer office rents in a recovering commercial market - this has discouraged tenants occupying high-spec space from moving back to offices.
Colliers expects the overall industrial property market here to do better as the economy continues to pick up. 'The recovery in the exports and manufacturing sector should support an expansion in demand from manufacturers,' its research and advisory director Tay Huey Ying said.
'Coupled with the return of institutional funds to the industrial market, rents, land and capital values of single-user factories and warehouses are expected to increase up to 10 per cent in the next 12 months.' Ms Tay also expects rents of high-spec space to bottom out this year.
Besides Singapore, most Asia-Pacific cities have seen their industrial property markets stabilise, Colliers noted. For instance, industrial rents in Delhi, Guangzhou, Shanghai and Hong Kong have hit the trough.
Source: Business Times, 14 May 2010
Thursday, May 13, 2010
Colliers says industrial property market stabilised
Property consultant Colliers International says the industrial property market here has stabilised, with rents having bottomed out.
In its latest bi-annual survey on industrial real estate costs across Asia Pacific, the firm says the stabilisation was on the back of a turnaround in the US and Euro-zone.
In particular, export-oriented cities, like those in Singapore and China, posted strong double-digit year-on-year gains in manufacturing output in the first quarter this year.
This, Colliers says, contributed to a healthy demand for industrial properties across the region.
The firm’s director of research and advisory, Tay Huey Ying, notes that the average monthly gross rents of single-user factories in central Singapore has edged up.
From October to March, the rent was up by an average of 3.8 per cent to about S$1.35 per square foot.
Colliers also says institutional investors are returning to the industrial investment market here.
For example, Singapore saw the sale of six logistics facilities worth some S$713.2 million to Cache Logistics Trust for its listing in April 2010.
Going forward, Ms Tay says Singapore’s exceptionally-strong growth seen so far this year for the manufacturing sector, has raised confidence for the industrial property market.
As a result, rents, land and capital values of industrial properties are expected to see a steady increase in the next 12 months.
Source: Channel News Asia, 13 May 2010
In its latest bi-annual survey on industrial real estate costs across Asia Pacific, the firm says the stabilisation was on the back of a turnaround in the US and Euro-zone.
In particular, export-oriented cities, like those in Singapore and China, posted strong double-digit year-on-year gains in manufacturing output in the first quarter this year.
This, Colliers says, contributed to a healthy demand for industrial properties across the region.
The firm’s director of research and advisory, Tay Huey Ying, notes that the average monthly gross rents of single-user factories in central Singapore has edged up.
From October to March, the rent was up by an average of 3.8 per cent to about S$1.35 per square foot.
Colliers also says institutional investors are returning to the industrial investment market here.
For example, Singapore saw the sale of six logistics facilities worth some S$713.2 million to Cache Logistics Trust for its listing in April 2010.
Going forward, Ms Tay says Singapore’s exceptionally-strong growth seen so far this year for the manufacturing sector, has raised confidence for the industrial property market.
As a result, rents, land and capital values of industrial properties are expected to see a steady increase in the next 12 months.
Source: Channel News Asia, 13 May 2010
Thursday, May 6, 2010
$140m expansion to increase R&D space at The Biopolis
To be completed in 2013, expansion will add 46,000 sq m to total 310,000 sq m
BIOMEDICAL research and development hub The Biopolis will undergo a $140 million expansion which will boost its total R&D space to some 310,000 square metres - a move aimed at meeting the increased demand for biomedical R&D space.
According to developer JTC Corporation, the expansion plans will add about 46,000 sq m to The Biopolis and is slated for completion in 2013.
The expanded Biopolis will also incorporate energy-efficient laboratory designs, which will translate to reduced energy consumption as well as higher savings for tenants where operational costs are concerned. Some of the measures that JTC will implement include more accurate sizing of laboratory equipment to reduce energy wastage, solar control and glazing for laboratory spaces to reduce heat gain, better lighting selection to reduce maintenance and running costs as well as the incorporation of natural ventilated spaces to reduce the building's cooling load.
'In the upcoming expansion of The Biopolis, sustainability will be taken a step further with . . . energy-efficient lab design. Some of the sustainable lab design strategies . . . will be more practical and cost- effective in nature,' JTC said. The Biopolis has been purpose-built for public and private biomedical research institutes and organisations.
In 2009, Singapore's biomedical sciences manufacturing output rose 2.5 per cent year-on-year to $20.7 billion, while total employment climbed 7.2 per cent to 13,174. Singapore aims for the sector to hit a manufacturing output of $25 billion by 2015.
Meanwhile, total business spending stood at $700 million last year while fixed asset investments (FAI) were $1.2 billion.
Located at one-north, The Biopolis is currently in Phase 3 of its development. By end-2010, Phase 3 will add 41,500 sq m of space to the biomedical hub for R&D laboratories and supporting offices.
Phase 1 of The Biopolis (a 185,000 sq m seven- building development) is fully occupied, as is Phase 2, which comprises a cluster of two buildings spanning 37,000 sq m.
Source: Business Times, 6 May 2010
BIOMEDICAL research and development hub The Biopolis will undergo a $140 million expansion which will boost its total R&D space to some 310,000 square metres - a move aimed at meeting the increased demand for biomedical R&D space.
According to developer JTC Corporation, the expansion plans will add about 46,000 sq m to The Biopolis and is slated for completion in 2013.
The expanded Biopolis will also incorporate energy-efficient laboratory designs, which will translate to reduced energy consumption as well as higher savings for tenants where operational costs are concerned. Some of the measures that JTC will implement include more accurate sizing of laboratory equipment to reduce energy wastage, solar control and glazing for laboratory spaces to reduce heat gain, better lighting selection to reduce maintenance and running costs as well as the incorporation of natural ventilated spaces to reduce the building's cooling load.
'In the upcoming expansion of The Biopolis, sustainability will be taken a step further with . . . energy-efficient lab design. Some of the sustainable lab design strategies . . . will be more practical and cost- effective in nature,' JTC said. The Biopolis has been purpose-built for public and private biomedical research institutes and organisations.
In 2009, Singapore's biomedical sciences manufacturing output rose 2.5 per cent year-on-year to $20.7 billion, while total employment climbed 7.2 per cent to 13,174. Singapore aims for the sector to hit a manufacturing output of $25 billion by 2015.
Meanwhile, total business spending stood at $700 million last year while fixed asset investments (FAI) were $1.2 billion.
Located at one-north, The Biopolis is currently in Phase 3 of its development. By end-2010, Phase 3 will add 41,500 sq m of space to the biomedical hub for R&D laboratories and supporting offices.
Phase 1 of The Biopolis (a 185,000 sq m seven- building development) is fully occupied, as is Phase 2, which comprises a cluster of two buildings spanning 37,000 sq m.
Source: Business Times, 6 May 2010
Thursday, April 22, 2010
Boon Keng Development makes top bid for Woodlands industrial site
BOON Keng Development made the top bid of $65.2 million for an industrial site at Woodlands Avenue 12 in a government tender which closed yesterday.
Boon Keng’s bid, which works out to $75 per square foot per plot ratio (psf ppr), is 29 per cent higher than the second highest bid of $50.6 million ($58 psf ppr) submitted by TGFB Pte Ltd and more than twice the application bid which triggered the tender. There were six bids in all for the site from developers including Soilbuild Group and Wee Hur Holdings
The 60-year leasehold site was launched after an unnamed party committed to bid at least $25.0 million ($29 psf ppr) for it last month. The site has a maximum gross floor area of 868,628 sq ft.
‘The strong GDP growth of 13.1 per cent year-on-year in Q1 2010, driven by a 30 per cent year-on-year surge in the manufacturing, has resulted in demand for new industrial space as evidenced by the six bids received by the Urban Redevelopment Authority,’ said executive director of CBRE Research Li Hiaw Ho.
The top bid is also more than twice the winning bid for industrial sites in Woodlands in the past two years.
A 60-year leasehold industrial site at the junction of Woodlands Industrial Park E5/Avenue 4 was awarded to Wee Hur in July last year for $22.9 million, or $34 psf ppr. And before that, a 60-year leasehold site along Woodlands Industrial Park E5 was awarded to Soilbuild Group in July 2008 for $13.6 million, or $30 psf ppr.
Mr Li estimates that the breakeven cost for this development is estimated to be about $240 psf to $260 psf. In the first four months of 2010, strata-titled units in Admiralty Industrial Park, located along Woodlands Industrial Park E1, went for between $163 psf and $249 psf, CBRE’s data shows.
Source: Business Times, 22 Apr 2010
Boon Keng’s bid, which works out to $75 per square foot per plot ratio (psf ppr), is 29 per cent higher than the second highest bid of $50.6 million ($58 psf ppr) submitted by TGFB Pte Ltd and more than twice the application bid which triggered the tender. There were six bids in all for the site from developers including Soilbuild Group and Wee Hur Holdings
The 60-year leasehold site was launched after an unnamed party committed to bid at least $25.0 million ($29 psf ppr) for it last month. The site has a maximum gross floor area of 868,628 sq ft.
‘The strong GDP growth of 13.1 per cent year-on-year in Q1 2010, driven by a 30 per cent year-on-year surge in the manufacturing, has resulted in demand for new industrial space as evidenced by the six bids received by the Urban Redevelopment Authority,’ said executive director of CBRE Research Li Hiaw Ho.
The top bid is also more than twice the winning bid for industrial sites in Woodlands in the past two years.
A 60-year leasehold industrial site at the junction of Woodlands Industrial Park E5/Avenue 4 was awarded to Wee Hur in July last year for $22.9 million, or $34 psf ppr. And before that, a 60-year leasehold site along Woodlands Industrial Park E5 was awarded to Soilbuild Group in July 2008 for $13.6 million, or $30 psf ppr.
Mr Li estimates that the breakeven cost for this development is estimated to be about $240 psf to $260 psf. In the first four months of 2010, strata-titled units in Admiralty Industrial Park, located along Woodlands Industrial Park E1, went for between $163 psf and $249 psf, CBRE’s data shows.
Source: Business Times, 22 Apr 2010
Friday, April 16, 2010
Soilbuild wins industrial site bid at Yishun Ave 6 for S$29.3m
Property developer Soilbuild Group has been awarded the tender for an industrial site at Yishun Avenue 6 with a bid of some S$29.3 million.
The 153,485-square foot site has a maximum gross floor area of nearly 384,000 square feet.
The 60-year leasehold site can be used for clean and light industries and warehouses.
Soilbuild estimates the total development cost including land at about S$75 million to S$80 million.
Development of the site is expected to take up to two years.
The business space for sale is targeted at small and medium-size enterprises and supporting businesses of multi-national companies operating in northern Singapore.
It is due to be completed by 2012.
With this award, Soilbuild will have a total of 12 business space developments in its portfolio totalling 4.9 million square feet.
The purchase will be funded by the group’s internal resources and bank borrowings.
Source: Channel News Asia, 16 Apr 2010
The 153,485-square foot site has a maximum gross floor area of nearly 384,000 square feet.
The 60-year leasehold site can be used for clean and light industries and warehouses.
Soilbuild estimates the total development cost including land at about S$75 million to S$80 million.
Development of the site is expected to take up to two years.
The business space for sale is targeted at small and medium-size enterprises and supporting businesses of multi-national companies operating in northern Singapore.
It is due to be completed by 2012.
With this award, Soilbuild will have a total of 12 business space developments in its portfolio totalling 4.9 million square feet.
The purchase will be funded by the group’s internal resources and bank borrowings.
Source: Channel News Asia, 16 Apr 2010
Wednesday, April 14, 2010
Soilbuild submits top bid for Yishun site
SOILBUILD Group Holdings submitted the highest bid for an industrial site at Yishun Avenue 6 in a government tender, the Urban Redevelopment Authority (URA) said yesterday.
There were five bids for the 1.43 hectare plot, which was offered for sale on a 60-year lease.
Soilbuild’s $29.29 million bid, which works out to $76 per square foot per plot ratio (psf ppr), was 4 per cent higher than the second highest bid, by KNG Land, which offered $28.28 million, or $74 psf ppr.
The other bidders were Ho Lee Group, OKH Management and Whye Wah Group.
The site, which is on the government’s reserve list, has been available since November 2007. It is zoned for Business 1 use, with a maximum permissible gross plot ratio of 2.5.
It was triggered in February after an un-named developer committed to pay at least $11.5 million, or about $30 psf ppr. It was launched for public tender on March 15.
Analysts said then that interest in the parcel – which is across the road from ITE East (Yishun) and near Yishun Industrial Park – would be healthy because industrial space end-users have been looking for land in the north of the island.
In a recent report, CB Richard Ellis said the industrial property market showed signs of improvement in the first quarter. Tenders for four industrial sites were launched. And several industrial Reit players made a few purchases.
Source: Business Times, 14 Apr 2010
There were five bids for the 1.43 hectare plot, which was offered for sale on a 60-year lease.
Soilbuild’s $29.29 million bid, which works out to $76 per square foot per plot ratio (psf ppr), was 4 per cent higher than the second highest bid, by KNG Land, which offered $28.28 million, or $74 psf ppr.
The other bidders were Ho Lee Group, OKH Management and Whye Wah Group.
The site, which is on the government’s reserve list, has been available since November 2007. It is zoned for Business 1 use, with a maximum permissible gross plot ratio of 2.5.
It was triggered in February after an un-named developer committed to pay at least $11.5 million, or about $30 psf ppr. It was launched for public tender on March 15.
Analysts said then that interest in the parcel – which is across the road from ITE East (Yishun) and near Yishun Industrial Park – would be healthy because industrial space end-users have been looking for land in the north of the island.
In a recent report, CB Richard Ellis said the industrial property market showed signs of improvement in the first quarter. Tenders for four industrial sites were launched. And several industrial Reit players made a few purchases.
Source: Business Times, 14 Apr 2010
Wednesday, April 7, 2010
OKH top bidder for Yishun industrial site with $27.2m
DEVELOPERS have bid aggressively for a 60-year leasehold industrial site at Yishun Avenue 6 (Parcel 1).
Seven parties had expressed interest by the time the tender closed yesterday. OKH Management put in a top bid of $27.2 million, or $71 per square foot per plot ratio (psf ppr).
The is 2.4 times the trigger price of $11.5 million, or $30 psf ppr, that an unnamed developer had committed to pay in February, prompting the Urban Redevelopment Authority to put the site up for tender.
The second-highest bid, from Soilbuild Group, is not far below the front runner. Soilbuild has offered $25.12 million, or $66 psf ppr.
In fact, five of the seven bids are above $20 million. The other three above this level are from Whye Wah Group, KNG Land and Ho Lee Group.
The bids are ‘unexpectedly high’ and show that developers are bullish, said Knight Frank’s head of industrial business space Lim Kien Kim. ‘The economy is trending upwards, and there is demand for (industrial) space.’
The Purchasing Managers’ Index for March showed that the manufacturing sector expanded for an 11th straight month.
According to a CB Richard Ellis (CBRE) report yesterday, the industrial property market improved in the first quarter. Demand for factory and warehouse space is growing and rents could rise towards the end of the year, CBRE said.
The company’s research executive director Li Hiaw Ho said that the high bids for Yishun Parcel 1 could be due to a lack of industrial sites in the area. ‘No sites in Yishun were awarded under the government land sales programme in the past 10 years,’ he said.
He projects a breakeven cost of about $250-270 psf for development on the site.
Next to Parcel 1 is Parcel 8, the tender for which is ongoing. Mr Lim expects developers bidding for Parcel 1 to bid for Parcel 8 too. A developer could reap economies of scale by getting both plots, he said.
Parcel 1 is zoned ‘Business 1′ and is 152,770 sq ft, with a maximum gross plot ratio of 2.5.
Source: Business Times, 7 Apr 2010
Seven parties had expressed interest by the time the tender closed yesterday. OKH Management put in a top bid of $27.2 million, or $71 per square foot per plot ratio (psf ppr).
The is 2.4 times the trigger price of $11.5 million, or $30 psf ppr, that an unnamed developer had committed to pay in February, prompting the Urban Redevelopment Authority to put the site up for tender.
The second-highest bid, from Soilbuild Group, is not far below the front runner. Soilbuild has offered $25.12 million, or $66 psf ppr.
In fact, five of the seven bids are above $20 million. The other three above this level are from Whye Wah Group, KNG Land and Ho Lee Group.
The bids are ‘unexpectedly high’ and show that developers are bullish, said Knight Frank’s head of industrial business space Lim Kien Kim. ‘The economy is trending upwards, and there is demand for (industrial) space.’
The Purchasing Managers’ Index for March showed that the manufacturing sector expanded for an 11th straight month.
According to a CB Richard Ellis (CBRE) report yesterday, the industrial property market improved in the first quarter. Demand for factory and warehouse space is growing and rents could rise towards the end of the year, CBRE said.
The company’s research executive director Li Hiaw Ho said that the high bids for Yishun Parcel 1 could be due to a lack of industrial sites in the area. ‘No sites in Yishun were awarded under the government land sales programme in the past 10 years,’ he said.
He projects a breakeven cost of about $250-270 psf for development on the site.
Next to Parcel 1 is Parcel 8, the tender for which is ongoing. Mr Lim expects developers bidding for Parcel 1 to bid for Parcel 8 too. A developer could reap economies of scale by getting both plots, he said.
Parcel 1 is zoned ‘Business 1′ and is 152,770 sq ft, with a maximum gross plot ratio of 2.5.
Source: Business Times, 7 Apr 2010
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