What’s Singapore’s biggest industrial deal in Q2?

The deal was worth S$534.4 million.

After two consecutive quarters of decline, Savills says Singapore’s investment sales in the industrial segment rebounded, increasing by 88.2% QoQ to nearly S$924.0 million in the quarter. The improvement in investment sales came amid a stronger performance of the manufacturing sector. The good long-term growth prospects in the e-commerce and logistics sectors drove demand for warehouses. 

According to Savills, in the quarter, there were four warehouses which changed hands, the most notable of which was ESR-REIT’s acquisition of Global Trade Logistics Centre at 46A Tanjong Penjuru for S$112.0 million (S$214 psf GFA) from Montview Investments. The five-storey ramp-up logistics facility is currently fully committed with six tenants and is highly sought after by potential higher rental tenants handling high-valued goods. According to ESR-REIT, the property will be upgraded into an air-conditioned warehouse to capture higher paying tenants. 

“The largest industrial deal in the quarter was the sale of a 75% interest of Galaxis from CapitaLand to Ascendas Reit for S$534.4 million. With this acquisition, Ascendas Reit will have full ownership of the business park, which will enlarge its business and science park portfolio in Singapore by 18% to S$4.9 billion and increase the number of its properties in one-north to five. As at 31 March 2021, the development was almost fully occupied at 98.6%, with well known tenants such as Sea, Canon and Oracle.”