Singapore’s property market has been blessed with another redevelopment project as several established property groups have banded together to redevelop 680 Upper Thomson Road.
The consortium includes Oxley Holdings founder Ching Chiat Kwong and his son Shawn Ching’s business interests, KSH Holdings, LHN, Soon Hock Enterprise and Centurion Properties. The joint venture won the freehold industrial site by bidding $351 million under Macritchie Developments.
The deal shows that interest in Singapore’s industrial property market is not abating and freehold sites with redevelopment potential are still sought after.
The $351 million deal: A partnership. The JV (Thomson Gem Pte Ltd) has eight shareholders with different backgrounds and experience in Singapore’s property and investment markets.
Macritchie Developments has the largest interest of 26.5% followed by KSH Holdings with 25% and CP-Tagore with 22.5%. CP-Tagore is owned by Centurion Properties’ controlling shareholders David Loh and Han Seng Juan.
Soon Hock Fortune (a wholly owned subsidiary of Soon Hock Enterprise) owns 10% stake; LHN’s WPS (TPY) has 5%; Petrus Capital Holdings also has 5% and the other 6% is divided equally between Tay Lian Xie Tarol and Chin Hong Oon.
680 Upper Thomson Road: Property Details and Redevelopment Potential
Situated at the junction of Upper Thomson Road and Tagore Drive, the property has a large freehold land parcel (approx. 263,900 sq ft).
NTUC FairPrice was previously on site and used as a fresh food distribution centre. Upper Thomson industrial area is an interesting redevelopment site given its location.
The property is zoned Business 1 (B1) in the Draft Master Plan 2025 of the Urban Redevelopment Authority. The plot ratio is 2.0, so maximum gross floor area (GFA) is around 527,800 sq ft.
The existing development has a GFA of about 232,071 sq ft. The permitted development intensity therefore gives scope for the site’s usable floor area to be increased through redevelopment.
Acquisition Price and Land Cost. The consortium bought the property for $351 million or about $665 psf ppr.
The successful sale price was higher than the initial guide price of $300m ($300m + interest in freehold industrial property).
Another positive point is that the maximum allowable GFA is on site development baseline. As per planning details no land betterment charge will be payable for the proposed max GFA (if any).
These factors give the consortium an opportunity to explore redevelopment of a large freehold industrial site in a relatively central location.
Why is this redevelopment so important for Singapore’s industrial property market?
The acquisition of 680 Upper Thomson Road shows that established developers and investors are still interested in the industrial property market in Singapore.
Large freehold industrial land parcels are rare (especially in areas with transport links and access to industrial businesses nearby).
KSH Holdings, LHN, Soon Hock Enterprise and the Oxley-linked Macritchie Developments also show how joint ventures can pool financial resources, development capacity and industry experience.
For industrial property investors and businesses the redevelopment is worth watching as it could add more industrial space to Upper Thomson and Tagore industrial cluster.
What This Means for Industrial Property Investors?
The redevelopment of 680 Upper Thomson Road could be one more piece in Singapore’s industrial property jigsaw puzzle.
Freehold tenure, large land area and B1 industrial zoning are just some of the attributes which make this property attractive from a long-term development point of view.
The involvement of multiple established property groups also highlights the potential demand for well-planned industrial development in established industrial locations.
So long as Singapore develops its manufacturing, logistics, food production and supporting industrial sectors, developments with functional layouts and strategically located industrial space will still be important to businesses looking for premises.
Key facts at a glance
| Particulars | Details |
|---|---|
| Property | 680 Upper Thomson Road |
| Location | Upper Thomson Road / Tagore Drive |
| Tenure | Freehold |
| Zoning | Business 1 (B1) |
| Land area | Approx. 263,900 sq ft |
| Plot ratio | 2.0 |
| Maximum GFA | Approx. 527,800 sq ft |
| Acquisition price | $351 million |
| Land rate | Approx. $665 psf ppr |
| Joint venture | Thomson Gem Pte. Ltd. |
| Previous owner | NTUC FairPrice Co-operative |
