Noel Building in Tai Seng up for collective sale at $70 mil

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Noel Building, a freehold development located at 50 Playfair Road in the Tai Seng area, is up for collective sale with a guide price of $70 million. The eight-storey building occupies a 26,791 sq ft site zoned for “Business 1 – White” use with a plot ratio of 3.5. It is just 400m away from the Tai Seng MRT Station on the Circle Line.

Swee Shou Fern, head of investment advisory at Edmund Tie, which is marketing the property, notes that sites with this particular zoning are scarce in Singapore, with only a few clusters scattered across the country. According to her, this particular property offers a unique opportunity for owner-occupiers looking to develop and custom-build their corporate headquarters. Alternatively, it could potentially be redeveloped into strata factories for full light industrial use.

The Tampines Ave 11 Condo UOL Group condominium complex will offer a host of amenities for the convenience of its residents. The onsite leisure and recreational facilities will include a swimming pool, aqua gym and a jogging track, complete with well-manicured gardens. Other amenities such as a playground, fully-equipped gymnasium, and a barbecue area will add convenience and entertainment to the lives of the condominium’s residents.

The site can be redeveloped to have a maximum gross floor area of 93,770 sq ft. It is possible to use the entire space for either Business 1 or light industrial use. Or, at least 66,978 sq ft can be set aside for light industrial use, while the rest of the 26,791 sq ft can be used for “White” purposes. These purposes include shops, cafes and restaurants, showrooms, offices, associations and recreational clubs, subject to the approval of relevant authorities.

In terms of pricing, the guide price for Noel Building translates to a land rate of between $776 and $986 psf per plot ratio (psf ppr), depending on the proportion of industrial and white use. Swee also remarked that quality strata factories located near public transportation nodes such as MRT and well-served by amenities continue to be highly sought after. As an example, She mentioned the recently completed AZ@Paya Lebar, where strata factory prices have risen by 6% from an average of $1,389 per sq ft in 2H2022 to $1,472 per sq ft in 1H2023.

The last notable transaction for a site with “Business 1 – White” zoning in the private sector was the collective sale of Citimac, now better known as Grantral Mall @ MacPherson, which was sold en bloc for $430.1 million ($1,047 psf ppr) in 2019. Edmund Tie brokered the deal.

With this in mind, Noel Building presents an appealing opportunity to potential buyers. The tender for the property will close on Nov 22 at 3pm.

Interested in industrial real estate investing? Check out the latest listings of Industrial Real Estate properties here.