A PORTFOLIO of 62 freehold strata industrial units in Citilink Warehouse Complex has been put up for sale en masse by City Developments Ltd : C09 +0.58% (CDL) via an expression of interest (EOI) exercise.
The properties are going for an indicative price of S$103 million, which translates to about S$997 per square foot over the total strata area that is for sale.
The 62 units range from about 947.2 square feet (sq ft) to 2,884.7 sq ft in Block 102E, with a combined strata area of about 103,301 sq ft. The units represent about a 34 per cent share of the development, said exclusive marketing agent Cushman & Wakefield on Thursday (Apr 20).
Citilink Warehouse Complex is an eight-storey twin-building industrial development located opposite the PSA Pasir Panjang Terminals. It is zoned “Business 1” under the Urban Redevelopment Authority’s Master Plan 2019 and now fully occupied by multiple tenants.
CDL said in its 2022 annual report that it holds 62 of the 180 strata-titled units at Citilink, as part of the group’s industrial portfolio. The Business Times understands that it is these same units that are now being put up for sale.
CDL had previously divested its Tagore 23 Warehouse, a freehold warehouse in Tagore Lane, reaping a gain of S$27.3 million, which it recorded in its 2022 interim results for the half-year ended Jun 30, 2022.
Cushman & Wakefield’s executive director of capital markets Shaun Poh said that the redevelopment of the current ports into the future Greater Southern Waterfront and its transformational impact could boost the future redevelopment potential of the Citilink properties.
“The potential buyer also enjoys the flexibility to exit the investment via bulk and/or individual strata sale,” he said.
The EOI exercise for the property closes at 3 pm on May 25.
Colliers noted in a report on Wednesday that the industrial sector accounted for one-fifth – 20.2 per cent – of total investment sales in the first quarter of this year, with S$80.8 million in industrial properties transacted.
Earlier, on Apr 10, Knight Frank reported that although industrial sales fell 11.6 per cent quarter on quarter for the first three months of this year, several large deals – such as the sale of four properties by Cycle & Carriage to M&G Real Estate for S$333 million – were still sewn up.
Leasing activity moderated, and islandwide leasing volume for multiple-user factories fell 1.5 per cent quarter on quarter to 1,548 tenancies in January and February from the year-ago period, it added.
CBRE noted in a report on Apr 13 that leasing momentum for the industrial sector remained resilient in the first quarter of 2023. Deals were driven by renewals in segments such as electronics, wholesale trade and medical products.
The industrial market continues to record broad-based growth across all segments; average warehouse and factory rents rose 2.8 per cent and 1.8 per cent quarter on quarter respectively, CBRE added.