Mapletree Industrial Trust to embark on redevelopment project in Kallang

/ EdgeProp
July 10, 2019 4:20 PM SGT
Mapletree Industrial Trust (MIT) will embark on a $263 million redevelopment of its properties in the Kolam Ayer 2 flatted factory cluster in Kallang. This was announced by Mapletree Industrial Trust Management (MITM), the manager of the Singapore-listed Reit. The total projected cost includes the book value of the existing properties, which are valued at $70.2 million as of March 31 this year.
The existing cluster of buildings at 155/155A and 161 Kallang Way sits on a 346,270 sq ft plot zoned for Business 2 use, and comprises two 7-storey flatted factories and an amenity centre, spanning a gross floor area (GFA) of 506,720 sq ft. The land has a 43-year tenure from July 2008.
The proposed redevelopment will be a high-tech industrial precinct that will also lift the utilised plot ratio from 1.5 to 2.5, increasing the total GFA to about 865,600 sq ft. A new build-to-suit facility will account for about 24.4% of the enlarged floor area, and will serve a German-based global medical device company. It will be one of the pre-committed anchor tenants, and has already signed a 15-year lease.
The redevelopment will be a high-tech industrial precinct with a gross floor area of about 865,600 sq ft (Picture: Mapletree Industrial Trust)
“The long-term lease commitment from the anchor tenant will provide stable income and increase the portfolio’s weighted average lease to expiry. As MIT’s largest redevelopment project to date, this is another strategic step in growing the hi-tech building segment,” says Tham Kuo Wei, CEO of MITM.
The Reit manager hopes to attract high value-add and knowledge-based businesses from advanced manufacturing, information and communications technology sectors to fill the remaining floor space. “The new high-tech industrial precinct has the potential to cater to companies seeking build-to-suit solutions. It will be a choice location for firms looking for high-quality industrial space at the city fringe,” says Tham.
Construction is expected to begin next year, and be completed by 2022.