Market watchers did not know if there was any gross floor space left on the properties. But they said that the properties could be redeveloped as modern industrial properties built to green standards. This, in turn, would bring higher rental rates and capital values.

The five-storey property, located at 3, New Industrial Road (Upper Paya Lebar Bartley), is valued at S$61,000,000. The building, which has a site of 34.125 sq ft is almost entirely occupied.

Kimly Construction expects to lease the remaining space within the building back for a limited time. Other third-party tenants are also in the building. Kimly Construction was founded by the Khoos.

James Koh, the founder of Fragrance Group and its chairman, purchased two old freehold Singapore industrial properties for S$101m.

Fragrance sold Victory Centre to an entity affiliated with LaSalle Investment Management for S$90M.

It acquired the land for S$43.39m, in an URA tender, in 2012.

Ardor Residence Singapore

Koh’s other property, worth almost S$40 million is located at 3 Kallang Pudding Road. The low-rise property, which has a site of approximately 24,700 square feet, is situated at the intersection of Kallang Pudding road and Tannery road.

Cheng Meng Furniture Group – controlled by Choo’s family – is selling the property. The building is owned by the seller.

In the Urban Redevelopment Authority’s most recent Master Plan, both locations are zoned Business 1 which allows for clean and light industrial use. Both sites share the exact same plot ratio (ratio of maximum gross flooring area to land surface – 2.5).

Koh might continue to lease the properties out in the near and mid-term.

Singapore’s older industrial properties are still in high demand, despite their low rental yields. These assets have a high potential for capital gain.

Older industrial properties that are freehold also provide buyers with the opportunity to renovate them into industrial buildings of higher standard, either as a long-term investment or for strata subdividing and selling.

Koh is a Singapore-based businessman who, through a number of privately held entities, controls assets such as office, industrial, hospitality and more. He privatised Fragrance Group (listed on the Singapore Exchange) in 2021. Global Premium Hotels was privatised in 2017.

Fragrance is redeveloping 15 Hoe Chiang Road at the former Tower 15 into a project that includes a hotel, serviced apartments and a shopping mall.