JTC Corporation announced that a CapitaLand Development affiliate had won the $369 million contract for a 4.41-hectare industrial property in Kallang Way.
The current three-story terraced factory, the last of its type in Singapore and constructed in the 1980s, would need to be preserved and used for new purposes by CL Savour Property.
Potential uses for the retained block include retail stores, restaurants, entertainment venues, and fitness and health centers. Alongside it, a multi-use food processing facility will be constructed.
Reusing an existing building is a requirement for the winning bidder in this, JTC’s first Industrial Government Land Sales (IGLS) procurement.
The tender seeks to provide inhabitants new facilities and revitalize industrial areas.
According to JTC, the tender ended on October 1 with four proposals.
Adaptive reuse, according to Ms. Tang Hsiao Ling, head of JTC’s urban planning and design division, is a practical strategy for lowering carbon emissions in the built environment while maintaining the Kallang Way site’s industrial past.
As industry heavyweights like CapitaLand building support our push for a wider adoption of sustainable practices in the building of industrial estates around Singapore, we are delighted by the good response to the tender, she added.
Tan Yew Chin, CEO of CapitaLand Development Singapore, said that the company aspires to help Singapore become a worldwide center for culinary innovation.
“To build a cutting-edge facility that satisfies the changing demands of the food manufacturing industry, we will draw on our demonstrated track record with food and industrial advancements as well as our understanding of our customers,” he said.
A nine-story food complex that can accommodate manufacturers, caterers, storage, and central kitchen operators is part of the site’s plans, CapitaLand Development said on October 2.
It said that the unique design from Singapore’s industrial architectural heritage will be preserved in the planned construction.
The project has seven years to be finished by the developer.
The developer will need to include the distinctive “terrace-showroom” style of the current building—a specially constructed showcase area facing the road—into its designs.
Unlike normal tenders, when developers compete for an undeveloped piece of land, this is different.
21 Collyer Quay is sold by CapitaLand Integrated Commercial Trust for $688 million.
In contrast to other IGLS sites, which usually have 20- or 30-year tenures, JTC granted the property a 33-year lease in order to give the developer more time to fulfill this need.
In addition to the facilities already offered to local residents and students, the bottom floor of the “terrace-showroom” block and portions of the new industrial building facing Pelton Canal will need to be utilized for retail purposes.
With a gross floor size of 114,239 sq m and a gross plot ratio of 2.5, the 4.41ha site was also made big enough to allow for the construction of a new multi-use food factory next to the retained building.
The tender site was created by clearing 10 rows of terraced workshops along Kallang Way that were constructed in the late 1970s.
The demand for food factories has grown among investors and industrialists in recent years, but there is a limited supply and the majority of sites are not centrally placed, according to Mr. Lee Sze Teck, senior director of data analytics at real estate company Huttons Asia.
He pointed out that the Kallang Way location is well-connected since it is close to expressways like the PIE and the Geylang Bahru and Mattar MRT stations.
“The area will be more lively and residents will be drawn to the development if the existing ‘terrace-showroom’ design factory is kept for retail uses,” he said.