CSC Holdings & Soilbuild Group to develop industrial space in Tuas
By Rachel Kelly
SINGAPORE : Foundation and geotechnical engineering specialist CSC Holdings - through its wholly-owned subsidiary Kolette - has appointed mainboard-listed Soilbuild Group, through its wholly-owned subsidiary SB Investment, to develop and market a S$51.7 million industrial space in Tuas South Avenue 2.
The 322,000 square foot area can be developed into a mix of 70 single, double and triple-storey terrace factory units.
Soilbuild said this will allow it to benefit from the resilient demand for terrace factory space by local small- and medium-sized enterprises (SMEs).
Industrial properties are expected to be in high demand from SMEs, according to CSC Holdings and the Soilbuild Group, which have teamed up to develop such an area in Tuas in the west of Singapore.
Integrated property developer Soilbuild said the collaboration is in line with its strategy to become a significant player in the business space market. It will receive units in exchange for marketing and developing the plot owned by CSC.
Low Soon Sim, executive director, Soilbuild Group Holdings, said: “In a development such as this, the development cost of covering design fees… marketing, construction and finance usually makes up 70 per cent to 80 per cent of total development cost. So using that as a benchmark, that is the number of units we will be receiving.”
The units are expected to launched early next year, and be completed in 2011. Experts said that similar units in the same area are priced in the region of S$150 to S$160 per square foot.
Soilbuild expects strong take-up due to demand within the SME market.
Mr Low said: “SMEs have remained very resilient and the underlying demand from such businesses remained fairly stable. Most SMEs prefer to own the properties that they run their businesses from, and arising from this, we see good opportunity.”
See Yen Tarn, group chief executive officer, CSC Holdings, said: “We do see a sign of pick-up, particularly in the side of the SMEs, and we believe that for this development, the target buyer will mainly come from that category of company and we are reasonably hopeful this project will satisfy their needs.”
The industrial site in Tuas has 51 years left of a 60-year lease.
CSC has previously collaborated with Soilbuild on other projects such as The Mezzo condominium development. - CNA/ms
Source : Channel NewsAsia - 08 December 2009
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