Singapore has a strong interest in older, freehold industrial property despite the low rental yields. These assets tend to be sought out primarily for the potential capital appreciation.

Older industrial freehold properties offer the chance to convert them into high-end industrial buildings that can be rented out for a long time or sold for strata subdivision.

Fragrance has sold Victory Centre for S$90,000,000, a light industrial ramp up facility with seven floors near Aljunied MRT. This entity is linked to LaSalle Investment Management.

James Koh is the founder and Chairman of Fragrance Group. His entities have purchased two older freehold Singapore Industrial Buildings for S$101 Million.

He has paid S$61mn for a 5-storey property in the Upper Paya Lebar/Bartley region. The property has a site size of 34.125 square feet. The majority of it is occupied, and will be leased back, by Kimly Construction. Also, the building has third-party renters. Kimly Construction, owned by the Khoo families, is located in Singapore.

Koh has also purchased a house at 3 Kallang Pudding Road. It is valued at nearly S$40 Million. The lowrise with an area of 24700 sqft is located at the junction of Tannery and Kallang Pudding streets. Cheng Meng Furniture Group (controlled by a Choo-family) is selling the building. The seller occupies it.

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Both sites are Business 1 zonesd under the Urban Redevelopment Authority latest Master Plan. Business 1 is a light and clean industry zone. Both plots have the exact same ratio of land to maximum gross area, or 2.5.

Koh has various private entities that own assets, primarily in Singapore. These include office, industrial or hospitality properties. In 2021, he privatised Fragrance Group – a Singapore Exchange listed company – and Global Premium Hotels (2017).

Fragrance redevelops the old Tower 15 site located at 15 Hoe Chiang Road as a hotel-serviced-apartment development.

Fragrance had developed the property in a 60 year leasehold plot measuring 67.944 sq. ft. at the corner Sims Drive/Aljunied Road.

Market observers could not determine whether the two properties were underutilized in terms of gross floor area.

The sites could, however, be redeveloped and built according to modern industrial specifications and green building standards. This would result in higher rental and investment values.

Koh will likely continue to lease properties to tenants in the near or mid-term.