Industrial Flashcards
1
Q
Stakeholders in industrial property market
A
- largely driven & shaped by government
- in land allocation, incentive schemes, tax holidays, and promotion of SG
- through Economic Development Board
2
Q
Types of zonings for Industrial
A
- Business 1
- Business 2
- Business Park
3
Q
What is the 60/40 rule?
A
- 60% of the floor area are to be used for main industrial uses, and the remaining 40% were to support the 60% (offices, childcare centres, etc)
4
Q
what do Business 1 do?
A
- NEA does not impose a nuisance buffer greater than 50 metres.
5
Q
Business 2 (B2)
A
- operations will be imposed with nuisance buffer more than 50 metres and within health and safety buffers
6
Q
Uses of Business 1
A
- Computer software development
- Distribution services
- Assembly and repair of computer hardware and electronic equipment
- Printing, publishing and allied industries
- Packing of dried foodstuff
- Warehouse except for storage of chemicals
7
Q
Uses of Business 2
A
- Biotechnology
- Manufacture of electrical apparatus and supplies
- Vehicle repair and servicing
- Manufacture of furniture and fixtures
- Warehouse
- Electrical Substation
- Industry/power generation plant
- Gas Installation
8
Q
Business parks
A
- engage in high-technology, research & development (R&D), high-value and knowledge intensive activities
- non-manufacturing in nature
- have generous & lush landscaping, quality building designs, and wider range and variety of amenities & facilities
9
Q
Business Park uses
A
- biomedical, software development industries, labs, etc
10
Q
what amenities Business Parks have?
A
- shuttlebus
- F&B outlets
- childcare
- gym
- swimming pool
11
Q
What does JTC stand for?
A
Jurong Town Corporation
12
Q
What is JTC?
A
- Largest industrial supplier developer
- In 2018: HDB industrial portfolio is
transferred to JTC. - No. of estates : 67 JTC estates
- Land area: 8,100 hectares
- No. of industrial units: 16,300
- No. of land leases: 3,640
- Ready-built space: JTC 3.4 million
sqm
13
Q
Ready Built Factories
A
- Tenure : 60y, 30y+option 30y, 30y & 20y
- Tenancy 3y + option 3y
- Hassle-free, quick-up operations for End-user industrialists
- Minimum investment in building/land
- Economies of scale when common
facilities/amenities are shared - Easy to expand/reduce space
requirements - For small businesses which require ground-floor access – general industries like vehicle repair,
machinery work.
14
Q
Standard Landed Factories
A
- Single- to 3- storey, with mezzanine office, toilets, own compound – design for heavy industries - requiring larger ground floor space for the movement and storage of goods.
- Land-based units are new generation model.
- Mezzanine offices are served by
passenger lifts and have office finish lobbies. - Common carpark
- For ground-based operations and heavy machinery and crane users.
15
Q
Flatted Factories
A
- Multi-tenanted
- Light & non-pollutive
- 1st to 3rd storeys: higher loading capacity for end-users with heavy
machinery & operations - Share common facilities like cargo lifts, loading bays, carparks, canteens
& toilets - Industrial shops: smaller in size & have own toilets. Common carpark
- For ground-based operations & heavy machinery & crane users
16
Q
Stack Up / Ramp Up Factories
A
- To intensify land use, landed factories are stacked up
- Multi-tenanted
- Every floor has direct vehicular and loading access via ramps
- High loading capacity and high ceiling
- Some flatted factories and industrial complexes are designed with ramps.
16
Q
Specialised Industry Specific
A
- Food; Woodworking; Motor related; Furniture; Aerospace; Biochemical;
Medical Devices; Clean & Nanotechnology - Multi-tenanted
- probably need high electrical load & storage space
- more pollutive
16
Q
Assessment criteria of JTC terms and conditions
A
- Fixed Assets Investments (FAI)
- Plot Ratio
- Value-Added (VA)
17
Q
Fixed Assets Investments (FAI) includes
A
- Plant & Machinery (P&M) i.e. the fixed assets in the audited accounts and
used in the production of goods and services in connection with its
business - Building & Civil (B&C) works which comprises of a set of qualitative
design guidelines and standards
18
Q
Plot Ratio
A
- applies mostly to land site applications
- It depends on site usage, site location, lease tenure period
- If the declared PR is not met, the lease tenure period is prorated.
19
Q
Value-add
A
a company to raw materials used during a production process
20
Q
Subletting
A
- tenant rent a part of the floor area to another.
- Subtenant may be wholly owned or related to tenant
- Sub-tenants still need to comply with relevant authorities’ requirements just like main tenant
21
Q
can end-user sublet? how?
A
sublet up to 50% of GFA to non-related companies within five years after obtaining the first TOP for the site, and up to 30% thereafter
22
Q
can third-party facility providers sublet? how?
A
- Can sublet up to 50% of GFA per allocation to non-anchor subtenants within five years after obtaining the first TOP for the site, and up to 30% thereafter
- Must sublet at least 50% of GFA to anchor subtenants within five years from obtaining the first TOP for the site, and 70% thereafter
- Minimum occupation period of three years for subsequent anchor subtenants
23
Q
JTC’s tenants can sublet?
A
nah
24
Q
what does assignment mean?
A
selling the entire land/property
25
Q
New build-&-lease contracts
A
No assignment (selling) during Investment period and 5 years thereafter
26
Q
JTC facilities bought from secondary market
A
- basically resale
- For leases ≤ 30 years: No assignment within 5 years from purchase of leases
- For leases > 30 years: No assignment within 10 years from purchase of leases
- For leases < 5 years: No assignment
27
Q
Build & Lease - 3rd party facility providers become JTC main lessees
A
- JTC grants land lease to 3rd-party Facility Provider
- 3rd-party Facility Provider constructs customised building for end-users
- Intended end-users (anchor tenants) rents
28
Q
Sale & Leaseback
A
- Industrialist assigns completed facility to third party facility provider, who leases back the facility to industrialist
for continual usage. - REITs actively acquired from other industrial property owners/landlords for investment.
- End-user industrialists - asset-light / off-Balance Sheet financing / unlock value
29
Q
Sale & Leaseback process
A
- Existing JTC lessee sells to a 3rd-party Facility Provider
- at the same time, leaseback at least 70% of GFA
- Or Anchor tenants to rent at least 70% and must
each occupy at least 1,500 sm & satisfy JTC criteria
30
Q
Factors affecting pricing of industrial properties other than location & accessibility
A
- market trend
- tenure (30 years usually)
- proximity to labor
- access roads & width of internal circulation road
- Utilities Provision
- loading & unloading facilities
- goods lifts & passenger lifts
- parking
