Type

Units

Min Area

Price Range

Other

71888 sqft

S$13.8M

Property Highlights

Commercial development with 1 unit currently available.
Prices currently start from S$13.8M.
For Singaporean second property buyers, ABSD applies at 20% of the purchase price, approximately S$2.8M on this acquisition.

Price Trends & Rental Yield

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Tampines Industrial Drive: A Purpose-Built Industrial Asset in a Prime Logistics Hub

Tampines Industrial Drive represents a substantial purpose-built industrial warehouse investment opportunity positioned at one of Singapore's most strategically significant industrial crossroads. Situated at the junction of Tampines Road and Tampines Industrial Drive, this five-storey structure commands excellent visibility and accessibility within the broader Tampines Industrial Area, making it an attractive proposition for operators seeking premium warehouse and light manufacturing space.

The asset comprises a total gross floor area of 71,888 square feet across a 51,607 square foot site, designed with a clear hierarchical structure that maximises operational flexibility. The ground floor, second floor, and third floor function as dedicated warehouse zones, collectively providing approximately 45,800 square feet of high-ceiling storage and logistics space. These warehouse levels feature ceiling heights ranging from 8.4 to 10 metres, with structural loading capacities between 15 and 30 kilonewtons per square metre, accommodating heavy industrial equipment and substantial inventory volumes without constraint.

Beyond its primary warehouse function, the development integrates approximately 4,000 square feet of flexible office and production space distributed across intermediate and upper floors. These ancillary areas, with ceiling heights of 4.2 metres and loading capacities between 5 and 7.5 kilonewtons per square metre, serve as ideal hubs for administrative functions, quality control, light assembly, or product finishing operations. This integrated arrangement allows operators to co-locate logistics, manufacturing, and management activities within a single secure facility, eliminating the inefficiencies of dispersed operations across multiple locations.

The building's infrastructure has been engineered to support demanding industrial operations. A single cargo lift rated to five tonnes provides vertical transport for goods, machinery, and heavy materials, whilst a separate passenger lift ensures safe and efficient personnel movement throughout the structure. The power infrastructure delivers 1000 kilovolt-amperes of supply capacity, adequate for most standard industrial production and refrigeration systems, though prospective buyers should verify capacity sufficiency against their specific operational requirements. An internal driveway measuring 12 metres in width provides dedicated vehicle circulation, loading, and parking facilities, with separate loading and unloading bays positioned on the second and third floor warehouse levels to streamline goods handling and reduce congestion at ground level.

Accessibility and operational continuity represent further strengths of the asset. The facility operates under 24-hour access protocols, enabling shift-based or round-the-clock operations without disruption. Ample parking provision accommodates both employee vehicles and delivery trucks, whilst the strategic positioning within the Tampines Industrial Area ensures proximity to supporting logistics infrastructure, container facilities, and transport networks essential for modern supply chain operations.

Investment Credentials and Existing Tenancy

The property is being offered with existing tenancy commitments extending through 2027, providing immediate cash flow for the acquiring party. This established occupancy profile reduces the vacancy and leasing risk typically associated with industrial acquisitions, whilst the income stream provides a predictable foundation for financial planning. The sale proceeds on an 'as is where is' basis, transferring the property and existing lease arrangements as currently structured, subject to approval from the relevant authorities governing industrial land development.

The site carries Business 2 land designation, appropriate for its current warehouse and light manufacturing configuration. Prospective purchasers should note that the property is subject to Jurong Town Corporation approval for change of ownership or material modification of use, a standard requirement within Singapore's industrial estate framework designed to preserve land use planning objectives and operational compatibility within mixed-use industrial zones.

Location and Market Positioning

The Tampines Industrial Area has evolved as one of Singapore's most resilient and diversified industrial clusters, characterised by consistent demand for warehouse and manufacturing space from both multinational corporations and local-serving enterprises. Positioning at the junction of Tampines Road—a major arterial serving east-west connectivity across the island—and Tampines Industrial Drive itself, this facility enjoys superior visibility and accessibility compared to internalised industrial properties. This prominence supports tenant recruitment and operational flexibility, particularly valuable for businesses dependent on regular inbound and outbound logistics activity.

The surrounding district benefits from mature transport infrastructure, including established road networks and proximity to Port of Singapore operations, making it an ideal location for companies requiring efficient goods movement. Industrial land availability within the eastern corridor has remained constrained relative to demand, supporting rental resilience and capital appreciation in well-positioned, purpose-built assets such as this property.

Financial Considerations and Buyer Suitability

The asking price of S$13,800,000 positions this asset within the mid-to-large end of the industrial property market, appropriate for institutional investors, substantial private concerns, or high-net-worth individuals seeking stable industrial real estate exposure. Industrial properties of this specification typically attract investors prioritising long-term yield stability, tenant quality, and capital preservation over aggressive short-term appreciation. The existing tenancy through 2027 enhances this value proposition by delivering contracted income whilst new ownership assesses market conditions, tenant creditworthiness, and potential value-enhancement initiatives.

Prospective buyers should conduct thorough due diligence on the existing tenancy terms, including rental rates, escalation provisions, maintenance responsibilities, and exit optionality. Industrial leases frequently contain renewal options and market review clauses, which will materially influence the property's cash flow trajectory beyond the initial tenancy period. Engaging qualified industrial property specialists and legal counsel experienced in industrial leases is essential to validate lease economics and long-term income potential.

Operational and Structural Considerations

The multi-level warehouse configuration offers substantial operational efficiency compared to single-level warehouses of equivalent area. The vertical stacking of warehouse zones reduces ground footprint pressure, supporting higher land utilisation efficiency and operational productivity per square foot of site. However, prospective operators should assess their specific logistics workflows—particularly goods movement patterns—to confirm that vertical racking and inter-floor transport methodologies align with their supply chain practices.

The varying ceiling heights across warehouse levels reflect typical industrial design philosophy, with ground floor zones engineered for bulk storage and heavy equipment, whilst upper levels may suit higher-value or faster-moving inventory requiring more frequent access. The dedicated upper-floor loading bays are particularly valuable, enabling parallel goods handling operations and reducing congestion bottlenecks during peak activity periods.

Tampines Industrial Drive represents a substantive, institutional-quality industrial asset positioned within a premier logistics cluster and backed by established tenant income extending through the medium term. Investors and operators evaluating substantial warehouse and light manufacturing opportunities should consider this property a meaningful addition to their evaluation process.

Frequently Asked Questions

What rental yield could an investor expect from purchasing Tampines Industrial Drive as an investment property?

Industrial warehouse properties in the Tampines cluster typically generate gross rental yields between 4% and 6% per annum, depending on tenant profile, lease terms, and market conditions at acquisition. The existing tenancy through 2027 provides immediate income visibility at the current lease rate, enabling prospective investors to calculate entry-point yield precisely. Upon lease expiration or renewal, yields will adjust according to prevailing industrial market rates, which have historically tracked inflation and demand growth within the eastern logistics corridor. Investors should request detailed lease documentation, including current rent, escalation mechanisms, and tenant renewal intentions, to model cash flow across the full investment horizon and assess whether anticipated yield trajectory justifies the capital outlay.

How does the per-square-foot pricing of this industrial property compare to recent Tampines transactions?

At approximately S$192 per square foot (based on the S$13.8 million asking price against 71,888 sqft gross floor area), this property reflects mid-to-premium positioning within the Tampines industrial market, appropriate for a purpose-built, multi-level facility with established tenancy and integrated office space. Recent comparable transactions for single-level warehouse facilities in the area have traded within the S$150–S$200 per sqft range, with variations reflecting floor height, ceiling heights, tenant quality, and lease duration. The per-sqft price for this asset sits within the upper portion of recent transaction bands, justified by its superior building specification, multi-level configuration, existing cash-generative tenancy, and strategic corner position. Investors should commission independent valuation to validate pricing against the specific subset of comparable transactions completed within the preceding 12–18 months, as industrial market pricing remains transaction-sensitive and tenure-specific.

What Additional Buyer's Stamp Duty (ABSD) implications apply if I purchase this property as a second residential property?

If you are a Singapore Citizen acquiring this industrial property as a second residential property, Additional Buyer's Stamp Duty (ABSD) of 20% applies to the purchase price, payable upon completion of the sale. However, it is critical to confirm the property's classification for ABSD purposes, as industrial warehouses are typically designated as non-residential assets and therefore exempt from ABSD entirely. The ABSD rate of 20% applies specifically to residential property acquisitions; industrial and commercial properties are classified separately under Singapore's property tax framework and do not incur ABSD. Prospective buyers should seek clarification from their legal counsel and the Inland Revenue Authority of Singapore regarding the precise ABSD status of this particular property classification before proceeding, as industrial designation generally provides a significant tax advantage compared to residential property acquisition.

What is the lease tenure of this property, and what resale impact might lease decay present?

The property operates under a 20-year lease effective from March 2016, meaning the unexpired tenure as of 2024 is approximately 12 years remaining. This intermediate lease length is typical within Singapore's industrial estate framework but does present a structural consideration for long-term capital appreciation and refinancing availability. As the lease approaches expiration (circa 2036), refinancing options may tighten and buyer interest may diminish unless the lease is renewed or extended. Prospective purchasers should evaluate whether the lease renewal likelihood with the relevant authority (JTC) is probable, investigate renewal cost estimates, and model the asset's value trajectory under various lease extension scenarios. For investors with medium-term (5–10 year) holding horizons, lease tenure risk remains manageable, but those contemplating longer-term ownership should explicitly prioritise lease extension strategies as part of their acquisition planning.

How does the absence of direct MRT connectivity affect demand and capital appreciation potential for this industrial property?

Tampines Industrial Drive is not served by direct MRT station proximity, positioning it within a mature car-dependent logistics corridor where transport connectivity is primarily road-based. However, this absence of MRT infrastructure is not detrimental to industrial property value; conversely, industrial facilities typically derive demand from operational logistics requirements, road freight accessibility, and proximity to port or container facilities rather than mass transit. The property's positioning on Tampines Road, a major arterial route, provides superior road connectivity for goods movement and heavy vehicle access, which are the genuine mobility requirements for warehouse and manufacturing operators. Industrial tenants actively prefer road-accessible locations with high-capacity loading and circulation facilities over MRT-adjacent properties, making the current location positioning advantageous rather than disadvantageous. Capital appreciation in industrial properties is driven primarily by land scarcity, tenant demand density, and operational obsolescence risk—factors largely independent of MRT proximity.

Which buyer profiles are best suited to acquiring Tampines Industrial Drive?

This property is optimally suited for institutional investors such as REITs, private equity industrial funds, and family offices seeking stable, cash-generating industrial assets with established tenancy and medium-term hold potential. Substantial private enterprises operating manufacturing, logistics, or distribution businesses may also view acquisition as a strategic owner-occupier play, consolidating dispersed leased operations into a single owned facility and capturing long-term property appreciation alongside operational continuity. High-net-worth individuals with diversified commercial property portfolios may consider it as a core-plus allocation to industrial real estate, particularly if their existing exposure is predominantly retail or office-based. Conversely, this property is less suitable for first-time property investors seeking residential exposure, smaller owner-occupier businesses lacking S$13.8 million capital availability, or traders seeking short-term appreciation, as industrial property cycles are lengthy and pricing dynamics reward patient, income-focused holding strategies rather than speculative acquisition approaches.

What TDSR and financing headroom considerations apply at this property's asking price?

At an asking price of S$13.8 million, prospective buyer-occupiers financing this acquisition through bank credit will typically require total debt service ratio (TDSR) coverage demonstrating that all loan obligations consume no more than 60% of monthly household or business income. For an investor financing 70% of the acquisition (approximately S$9.66 million) at typical industrial mortgage rates of 4.5–5% and a 20-year amortisation, monthly debt servicing obligations would approximate S$57,000–S$62,000. Qualifying for this financing tier typically requires demonstrated monthly household or business income exceeding S$95,000–S$103,000, appropriate for established business owners, professional partnerships, or investment entities with strong cash flow documentation. Smaller investors or owner-occupiers with tighter cash flow may consider higher equity contributions to reduce debt servicing obligations or explore joint acquisition structures. Banks typically require comprehensive due diligence on business cash flow, tax returns, and lease quality before approving industrial property financing at this scale, so prospective buyers should engage mortgage brokers and lenders early to validate financing availability and optimal debt-to-equity structuring.

How does Tampines Industrial Drive compare to competing industrial facilities in the eastern corridor?

Tampines Industrial Area competes directly with adjacent logistics hubs in Changi, Pasir Ris, and eastern Sembawang for tenants requiring high-volume warehouse and manufacturing space. Compared to newer developments within Changi Business Park or purpose-built logistics clusters, Tampines facilities are generally positioned as more value-oriented options with slightly lower per-sqft pricing and fewer amenity features, but with equivalent or superior road connectivity and proximity to port operations. The multi-level configuration and integrated office space within this particular asset differentiate it from simpler single-level warehouses prevalent in the district, appealing to tenants requiring co-located administration and production capabilities. Competitive pressure from newer, LEED-certified facilities and automated logistics hubs means this asset's value proposition relies substantially on operational efficiency, tenant retention, and rental resilience during market downturns. Investors should evaluate this property against a curated set of recent Tampines transactions and comparable facilities within 2–3 kilometres to confirm pricing competitiveness and yield adequacy relative to alternative industrial opportunities in the broader eastern zone.

Which floor levels or warehouse stacks offer the best value proposition within this multi-level structure?

The ground floor warehouse level, spanning approximately 13,200 sqft with a 10-metre ceiling height and 30 kilonewton-per-square-metre loading capacity, represents the most operationally versatile and highest-demand space, typically commanding premium rental rates due to direct vehicle access and minimal goods-handling complexity. The second floor warehouse (15,600 sqft, 8.4-metre ceiling, 25 kN/m² capacity) provides substantial volume at moderate ceiling height, ideal for businesses balancing inventory diversity with operational efficiency, and commonly achieves rental rates 10–15% below ground floor comparables. The third floor warehouse (17,000 sqft, 8.5-metre ceiling, 15 kN/m² capacity), whilst offering the largest total area, experiences the most restrictive loading parameters and highest inter-floor logistics costs, typically attracting lower rental rates and longer vacancy periods. For value-focused investors, the combined second and third floor portfolio may offer superior average yield relative to the premium-pricing dynamic of ground floor tenancies, particularly if the acquisition strategy emphasises stable mid-market tenant recruitment over trophy-quality anchor operators. Careful tenant mix optimisation across levels will materially influence overall portfolio performance.

What future supply pipeline developments in the Tampines and eastern industrial corridor might affect this property's long-term capital appreciation?

The Tampines and eastern logistics corridor faces constrained industrial land availability, with most greenfield sites already earmarked for government use, residential intensification, or existing industrial estate expansion. New supply is therefore anticipated to emerge primarily through on-site redevelopment of older facilities and intensification of existing industrial estates, rather than wholesale new precinct creation. JTC's planning framework has emphasised consolidation and modernisation of ageing industrial stock, which may increase competitive pressure from newly upgraded facilities featuring superior amenities, higher automation compatibility, and advanced logistics infrastructure. However, this supply constraint paradoxically supports long-term appreciation in well-positioned, operational assets like Tampines Industrial Drive by maintaining scarcity value and supporting rental growth across existing quality facilities. Prospective investors should monitor JTC's master plan updates and district-level supply announcements to anticipate competitive threats from new supply waves, but should recognise that the overall scarcity of industrial land within the eastern corridor—particularly road-accessible locations—provides structural support for capital preservation and moderate appreciation throughout the medium-to-long-term holding horizon.

Warehouse At Tampines Industrial Drive — From S$13.8M