05-05-2025
Far East Organization puts Tuas asset with big redevelopment potential on the market
[SINGAPORE] Far East Organization has put on the market a sizeable industrial property in Tuas with substantial redevelopment potential.
Located at 51 Tuas View Link, the property has a site area of 456,810 square feet (sq ft) and 60 year-leasehold tenure from July 1996, leaving a balance term of about 31 years. On the site are two blocks of single-storey warehouses with mezzanine levels.
The indicative guide price is about S$138 million.
Under the Urban Redevelopment Authority's (URA) latest Master Plan, the site is zoned for Business 2 use and has a 2.5 plot ratio, which means it can be developed to a maximum gross floor area (GFA) of about 1.14 million sq ft – or 3.5 times the existing 323,831 sq ft GFA of the two warehouse blocks that are on the site.
The indicative price works out to about S$120 per square foot per plot ratio (psf ppr) based on the maximum GFA allowed for the site.
The pair of warehouses are fully leased to eight tenants in trades such as logistics and packaging, hardware, and oil and gas and who use the premises for storage, repair and servicing, said Tan Boon Leong, executive director and co-head of investment services for Singapore at Colliers.
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The property consulting group is conducting an expression of interest exercise to find a buyer for the property. Interested parties have up to 3 pm on Jun 10 to submit their offers.
Tan declined to confirm or comment on the property's ownership.
The site is understood to have been part of a bigger land parcel of about 969,700 sq ft, which Far East clinched at a URA tender that closed in 1996. The group developed the remaining land into the Tradelink Place project, which is fully sold. Observers said it makes sense for Far East to sell 51 Tuas View Link, which is a non-core asset, and recycle capital.
Tan noted that the site area of 51 Tuas View Link, at 4.2 hectares (ha), is larger than any site available on the current first-half 2025 Industrial Government Land Sales (IGLS) programme. The biggest site on the confirmed list of the IGLS programme, 2.8 ha, is in a location formerly known as Tuas Avenue 11 and renamed Pioneer Road.
The 51 Tuas View Link property's Business 2 zoning makes it suitable for both light and heavy industrial activities, and warehousing. 'An incoming buyer may also explore the possibility of building a dormitory or a food-production and storage facility, subject to approval by the relevant authorities. This asset caters to a broad range of occupiers,' said Tan.
A major selling point of the asset is that the site's lease was not issued by JTC and hence not restricted by the agency's policies on assignment of lease and subletting, he highlighted. 'This makes the asset attractive to owner occupiers, developers and investors alike.'
He added that the 31-year balance lease term on the site is comparable to that for new IGLS sites.
'On the whole, 51 Tuas View Link represents a unique opportunity for industrial users, developers, institutional investors and family offices, whether as a near-term redevelopment opportunity or to keep the existing two warehouse blocks on the site for rental income while deciding on the best use of the site.'
Potential buyers can look at redeveloping the site into a mix of different industrial spaces such as landed factory/warehouse and a ramp-up strata development, Colliers said.
