Soon Hock Group Buys Freehold Ching Shine Industrial Building En Bloc 1132 Mil
Sole marketing agent JLL has announced that Ching Shine Industrial Building has been sold to commercial and industrial developer Soon Hock Group through a tender process that closed on April 3.
The winning bid of $113.2 million from Soon Hock Group was just slightly above the minimum price of $113 million set by JLL. The tender received two bids and three expressions of interest, according to Nicholas Ng, senior director of capital markets at JLL Singapore, who handled the collective sale.
Ng says, “The site’s excellent investment potential as a freehold asset attracted competitive bids from developers and funds, demonstrating their confidence in the up-and-coming asset class.”
The freehold site spans 49,308 sq ft and has a regular shape with a 100m frontage along Shaw Road. Located just a five-minute walk from the Tai Seng MRT Station on the Circle Line, the property consists of 52 strata units with a total gross floor area of 137,341 sq ft. The purchase price of $113.2 million by Soon Hock translates to a unit land rate of $824 psf per plot ratio (ppr).
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“This acquisition aligns with our long-term vision of developing high-quality, future-ready assets in key growth corridors, ensuring we deliver sustained value to our stakeholders,” says Walter Tan, CEO of Soon Hock Group. He adds, “The freehold tenure, combined with the property’s prime location, presents strong potential for both asset enhancement and long-term capital appreciation.”
This was the first time that Ching Shing Industrial Building was put up for tender, and the sale was approved by 80% of the strata-titled owners who were represented by Donaldson & Burkinshaw LLP.
The building, which was completed in the early 1980s, is currently zoned “Business 1” and has a gross plot ratio of 2.5 under the URA Master Plan 2019.
In the vicinity, the former Noel Building, a freehold Business 1 industrial building, was sold en bloc for $81.18 million in November 2023, which was 17% above the $700 million guide price. The building will be redeveloped into a new 12-storey, strata-titled ramp-up food factory called Food Point Tai Seng by a consortium led by Apex Asia.
Other well-known food factories in the area include BreadTalk IHQ, Sakae Building and Food Empire Building.