SINGAPORE - Seven industrial units in the Bukit Merah industrial estate are being put up for sale for a total of at least $10 million.
The units are located in Kewalram House and range in size from 2,100 sq ft to 4,300 sq ft. Two are on the ground floor while the rest of the units are located on the third floor.
Together, the units for sale have a total strata area of some 18,800 sq ft and can be used for warehouse or factory space.
They are on a 99-year lease with a remaining tenure of slightly over 45 years.
At an expected price of $10 million for all seven units, this works out to $620 per sq ft (psf) for the ground floor units and $480 psf for the units on the third floor, said property consultant JLL, which has been appointed the exclusive agent for the sale.
Its national director for investments, Ms Yong Choon Fah, said: "Ground floor units, which usually come with higher floor loading capacity and direct loading access, are hard to come by.
"Over the last one year, there were only two such units sold in the Bukit Merah Planning Area."
She noted that land parcels offered via the Government's industrial Land Sale Programme now come with shorter tenures capped at 30 years, so these units Kewalram House should be attractive for industrialists and investors.
"The gross yield of approximately 5 per cent is also attractive given the current low interest rate environment," Ms Yong added.
Built in the 1980s, Kewalram House is a 5-storey light industrial building with 63 units on a site zoned for Business 1 use with a plot ratio of 2.5.
It was the first industrial development undertaken by the Kewalram Chanrai Group under Kewalram Realty Limited.
The sale is being conducted through a tender exercise which will close on Thursday, Sept 25, at 2.30pm.