SINGAPORE: The industrial property scene in Singapore is buzzing. A hot prospect on the market is Admirax, a seven-storey light industrial gem in Woodlands. Global real estate investment manager AEW is reported to be selling it for approximately S$155 million to a family office.
This building, per the report of the Business Times, boasts a nearly 80% occupancy rate across its 476,480 square feet of lettable space, drawing attention from savvy investors. The anticipated net yield of around 6%, based on current rental income, makes this an attractive investment.
Admirax and its diverse tenant mix
Located at 8 Admiralty Street, Admirax operates on a 60-year leasehold that commenced in October 2000, leaving a healthy 36 years on the clock.
Its diverse tenant mix includes urban farming innovator Sustenir and the medical device manufacturer Quasar Medical, along with amenities like a food court and childcare facilities, making it a vibrant hub for businesses.
Having undergone significant upgrades in 2021 after AEW acquired it from BlackRock for S$142 million, Admirax features modern enhancements that elevate its appeal.
Knight Frank has been instrumental in brokering this sale.
Bendemeer Centre
In parallel, Bendemeer Centre, situated on the city fringe, is also generating buzz. The expression of interest (EOI) exercise for its sale closed on October 23, with an asking price of S$145 million and a healthy number of bids already in the mix.
This seven-story property, adjacent to Bendemeer MRT station, offers 170,000 square feet of lettable space and is currently 70% occupied.
Originally purchased for S$88 million in 2015, the property has seen renovations that enhance its marketability. With a 99-year leasehold initiated in March 1966, it still has about 40 years left, promising ample opportunity for growth. Tenants include tech firms like chipmaker MaxLinear and internet service provider ViewQwest, contributing to a projected net yield just below 5% if fully leased.
Both Admirax and Bendemeer Centre share a crucial advantage: they sit on sites not regulated by JTC Corporation. This opens doors to a broader range of tenants, including those ineligible for JTC sites, significantly enhancing their market appeal.
As Singapore’s industrial property landscape evolves, these prime offerings are set to attract keen investors ready to capitalize on the shifting economic tides.