Industrial real estate developer Soon Hock Enterprise has taken a big step forward after it filed its preliminary prospectus with the Monetary Authority of Singapore, seeking a listing on the Mainboard of SGX-ST. This strategic initiative follows soon after the decision by Soon Hock, widely known for its strong industrial property development track record, to increase its market position. Since then, it has launched and sold over 1,200 strata-titled industrial units across Singapore and has become one of the major players in the sector.
With a clear understanding of the complex demands of industrial space users, Soon Hock Enterprise has that edge with its insider market knowledge. Its Skye@Tuas development, which also yet to be completed, is a testament to its focused approach in providing the uniquely tailored industrial solutions for heavy-duty logistics and transport companies.
The company’s approach is not limited to its current projects. Soon Hock is currently looking to further develop its landbank by acquiring fresh plots of lands and properties around Singapore for both development as well as redevelopment. It is a vision that has been powered by Soon Hock’s relationships with businesses with excellent design and build endowments and guarantees that each one will be positioned optimally to capitalise on the logistics/industrial corridors in Singapore.
Soon Hock stated in a comprehensive financial review that it had multiple sources of income, a big chunk coming from the property development business and rental income generated by its investments. Their fiscal year-revenue dynamics are volatile due to project completions and occupancy activity that extend across fiscal years. Significantly, the company’s FY2024 revenue of $7.9M was well below that for the prior year ($264.7M) because it did not recognize any revenue from development property sales during FY2024 (there were no new project completions).
It has been further noted that revenue streams have not kept up the pace with rental income still accounting for a large part of their income, highlighting the company’s policy to retain a significant portfolio of investment properties. Soon Hock has also secured the tenancy for rental income of $700,000 in respect of its new completed workers’ dormitory and ancillar premises for the first quarter of FY2025. is in line with Company’s move into service –oriented industrial developments.
Moving ahead, the funds from the IPO will aid in Soon Hock’s aggressive expansion plans, including a scalable acquisition of new development sites and part-financing for existing projects such as 20 Shaw Road and Senang Crescent redevelopment.
Under the leadership of its founder and executive chairman, Tan Yeow Khoon Soon Hock is well-supported by strong cornerstone investors such as Amova Asset Management and Maybank Asset Management, among others, affirming their belief in the company’s sound business strategy and growth potential. With joint issue managers Maybank Securities and United Overseas Bank at the helm, Soon Hock Enterprise is set to reinforce its position as an industry leader in industrial real estate.
