The collective sale tender for Kewalram House, a private industrial asset along Jalan Kilang Timor in the Bukit Merah industrial precinct, closed on March 24. The same day, Soon Hock Enterprise Holding announced via a bourse filing that it was awarded the tender for the 99-year leasehold development at a sale price of $120.51 million.

The sale price is $510,000 higher than Kewalram House’s reserve price of $120 million when it launched for sale in January. In a March 25 press release, Quinvest Chambers International, the marketing agent for the development, notes that Kewalram House is likely the first leasehold industrial en bloc site to be successfully sold.

Kewalram House is a non-JTC development with a land area of about 108,359 sq ft, zoned for “Business 1” use with a gross plot ratio of 2.5. The land has about 34 years remaining on its 99-year lease, which started in 1961.

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Currently, the site is occupied by a main block of 56 strata units and five standalone terrace units, with unit sizes ranging from about 99 sq m to 805 sq m (1,066 sq ft to 8,665 sq ft). The existing development has a total strata area of about 201,543 sq ft.

"As an established industrial real estate developer with a strong track record and deep expertise in user-centric industrial assets, the acquisition of Kewalram House represents a compelling redevelopment opportunity aligned with our growth strategy," says Walter Tan, executive director and CEO of Soon Hock Enterprise Holding.

This is the first time owners of Kewalram House have made a collective sale attempt. "This successful transaction underscores the intrinsic value of quality industrial land and reflects continued investor confidence in Singapore’s real estate market, even amid global geopolitical uncertainties," comments Ian Loh, managing director of Quinvest Chambers International.