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One KM Review

One KM Review
Industrial & Commercial Property Review — District 26

One KM

Purpose-built light industrial facility with modern logistics infrastructure and flexible unit configurations

SGCPI Research Desk Updated August 2024 Tuas Loop, Singapore 639399 ≈30-YR LEASEHOLD FROM 2015

Street-level view of One KM, Tuas Loop, Singapore. Imagery: Google Street View (user-contributed imagery), accessed August 2024.

Project Overview

Building NameOne KM
AddressTuas Loop, Singapore 639399
District26 (Tuas)
Tenure≈30-year leasehold from 2015
Zoning / UseB1 Light Industrial
Built Form4-storey semi-detached warehouse
Land Area / GFA≈8,500 sqm / ≈28,200 sqm
Completion Year2015
Nearest MRTTuas Link Station (900m)
Key Road AccessTuas Loop, link to PIE & AYE
Transacted PSF RangeS$0.88–S$1.15 psf
Sale Price RangeS$24.8M–S$32.4M
Asking Rent RangeS$0.52–S$0.68 psf/mth
Occupier BaseFood & beverage processing, electronics assembly, contract manufacturing

Location & Connectivity

One KM is situated in the Tuas industrial precinct, Singapore’s western manufacturing and logistics hub. The building occupies a strategic corner lot on Tuas Loop, with direct frontage and recessed vehicle set-down. The Tuas estate has undergone significant infrastructure investment in recent years, with new rail connections and roadway improvements designed to support high-density industrial use. The location benefits from established utilities, three-phase power supply, and dedicated business parks amenities. Neighbouring properties range from food manufacturers to electronics assembly plants, indicating a diverse, established industrial economy in the micromarket.

Connectivity is robust. Tuas Link MRT Station is approximately 900 metres away (≈12-minute walk), providing interchange between the Downtown Line and cross-island transit. By road, One KM has direct access via Tuas Loop to the Paya Lebar Expressway (PIE, 4km north-west) and Ayer Rajah Expressway (AYE, 6km east), with secondary routing through local industrial roads to Choa Chu Kang Road and Bukit Batok. Motorists report transit times of 20–30 minutes to Changi Airport terminals and 15–18 minutes to Port of Singapore (Tuas sector). Road freight operators appreciate the designated truck routes and off-peak vehicle movement windows that reduce congestion in surrounding residential zones.

Supporting amenities include three food courts and canteens within walking distance, a 24-hour petrol station on Tuas Loop, and the Tuas Industrial Complex’s visitor parking provision. The Singapore Business Federation and several industry associations maintain offices in adjacent buildings. Mobile connectivity, emergency services (Tuas neighbourhood police station, 2.2km south), and medical facilities (nearby polyclinic) are all within operational reach. Schools and residential housing are located east of the PIE; most industrial workers commute from outer residential zones or dormitories (foreign worker housing is available 3–5km away).

Location of One KM, Tuas Loop industrial estate. Map data: Google Maps, accessed August 2024.

Building & Facilities

One KM is a four-storey semi-detached warehouse completed in 2015, designed to B1 light industrial standards with robust floor loadings and ceiling heights optimised for storage and assembly operations. The building envelope is reinforced concrete frame and masonry, with metal cladding and polycarbonate roof panels. Clear floor-to-floor heights average 5.2 metres on levels 1–3 and 4.8 metres on level 4 (mezzanine-ready). Slabs are designed for distributed loads of 5kPa and point loads up to 30 tonnes per support column, typical for industrial machinery and tall racking installations.

Common facilities include three electric goods lifts (capacity 2,500 kg each), dedicated loading docks on the ground floor with level access and weather protection, and an on-site 150-space hardstanding carpark (mix of standard and heavy-vehicle bays). A 2,000-litre diesel fuel tank serves the facility’s standby generator (backup power for critical tenants). The building’s HVAC is zoned; climate control is available on request but many units operate as naturally ventilated spaces to minimise operating costs. Electrical metering is individual per unit, with provisions for three-phase 63-amp distribution to each main lease or sublease. Water supply and drainage comply with Public Utilities Board standards; a roof-level rainwater harvesting system reduces external water demand by approximately 15% annually.

The building has been maintained to good condition with a periodic major refurbishment in 2022, including roof waterproofing, internal wall repainting, and fire safety systems upgrade (sprinklers, smoke detection, emergency lighting). All statutory inspections (Building and Construction Authority compliance, fire safety audit, structural engineer sign-off) are current as of August 2024. The property carries a satisfactory environmental audit rating; no historical contamination issues are noted. Tenant liability insurance and building insurance are mandated; the Management Corporation Strata Title (MCST) fee is approximately S$2.80 per sqm per annum.

Unit Types & Floor Plan Notes

One KM comprises four main leasable units per floor, with flexibility to cluster units for larger occupiers requiring consolidated space. Typical unit configurations range from 1,800 sqm (single-level whole-floor) to sub-units of 600–800 sqm on individual levels. The building layout is an open-plan industrial module, allowing tenants to install demountable partition walls, mezzanines, and plant rooms without structural interference. The two-unit corner configuration on each level offers excellent truck access and sightlines for visitor parking and asset visibility.

Unit Type A

≈1,800 sqm (full floor)

Entire level, unobstructed column-free open plan with two goods lift access points and dual loading dock connectivity. Suitable for contract manufacturers, food processors, and high-throughput assembly operations.

Unit Type B

≈900 sqm (half floor)

Half-level subdivision, independent goods lift and loading dock access. Ideal for mid-sized logistics operators, light assembly, or secure storage requiring climate control.

Unit Type C

≈600 sqm (quarter floor)

Smaller flexible unit with shared lift and loading access. Popular for small manufacturing, wholesale distribution, and e-commerce fulfillment micro-hubs.

Unit Type D

≈2,400 sqm (dual-level mezzanine)

Two levels combined with integrated mezzanine storage tier, ideal for high-value inventory (electronics, pharmaceuticals) requiring segregated secure storage and office workspace.

Column Spacing: 9m × 9m grid, allowing standard pallet racking and forklift circulation
Ceiling Height Clearance: 5.2m standard, 4.8m on L4 (mezzanine tier possible)
Floor Finish: Polished concrete, rated for 5 kPa distributed / 30T point loads
Utilities Headroom: Services routed in under-floor trenches and roof cavities; power & data ducts accessible without floor penetration
Partitioning: Non-structural demountable walls permitted; landlord approval required for permanent fixtures or heavy machinery installations

Investment Case

One KM represents a mid-tier industrial investment in an established, high-demand micro-market. Tuas has been Singapore’s designated heavy industrial and petrochemical zone for decades; recent government planning policy has reinforced its role as a future advanced manufacturing and logistics hub. The property benefits from modern construction (2015), recent capex (2022 refurbishment), and stable tenant demand driven by food manufacturing, contract electronics, and pharmaceutical packaging—sectors with strong export markets and local supply-chain resilience. The building’s semi-detached form reduces single-tenant vacancy exposure compared to larger monolithic warehouses, and the 30-year leasehold (≈21 years remaining as of 2024) is acceptable for institutional investors with medium-term hold horizons.

What Works

  • Tuas estate is core to Singapore’s manufacturing strategy; strong occupier demand and rising rents
  • Modern building (2015, recent capex) with robust structure and flexible lease terms
  • Diverse tenant base (F&B, electronics, contract manufacturing) reduces sector-concentration risk
  • Excellent road access (PIE, AYE) and emerging MRT connectivity (Tuas Link, 900m away)
  • Competitive rental yields (≈5.5–6.5% gross) appeal to yield-focused institutional investors

What to Weigh Carefully

  • Remaining leasehold (≈21 years) limits long-term hold appeal; en-bloc redevelopment unlikely in near term
  • Industrial zoning restricts end-user pool; conversion to residential or commercial is not permitted
  • Tenant base skews toward manufacturing; vulnerable to economic downturns, trade disruption, or automation
  • Gross margins (after MCST, property tax, capex reserve) typically 40–50%; tight cash flow if vacancy rises
  • Foreign investor ABSD exposure (15%) and stamp duties reduce entry/exit flexibility for non-resident buyers

Who This Suits

One KM is well-suited to institutional investors with a 3–7 year hold horizon, seeking stable industrial-sector income and capital appreciation in a government-designated strategic manufacturing zone. Owner-occupiers in food manufacturing, electronics assembly, pharmaceuticals, and contract logistics find the flexible floor plate and dual-access design operationally efficient. Private equity and REITs focused on South-East Asian logistics have shown consistent demand for Tuas-located assets, particularly buildings with high occupancy rates (One KM typically achieves 85–95% occupancy) and long-term anchor tenants. Syndicators and smaller portfolio investors should note that typical lot sizes are 1–2 units (S$2.5M–S$6M per tranche), making entry feasible for mid-market players. Conversely, the 30-year leasehold and manufacturing-only zoning make it unsuitable for buy-and-hold retirement portfolios or growth-focused investors with long time horizons. International buyers should account for ABSD (15% for non-citizen permanent residents, 20% for foreign entities), which adds material transactional friction.

Frequently Asked Questions

What are the permitted uses under B1 zoning, and can I subdivide a unit for multiple sub-tenants?
B1 zoning permits light industrial activities including food processing, electronics assembly, printing, textile, pharmaceutical manufacturing, and similar operations with low environmental impact. You cannot convert One KM to office, retail, residential, or warehousing-only use without Planning Authority approval (rare). Unit subdivision is allowed; landlord consent is typically routine for sub-leases of ≥500 sqm to established industrial tenants. Subletting smaller fragments requires more scrutiny due to traffic and utility load concerns. All sub-tenants must comply with the master lease covenants and local labour/environmental regulations. Plan any subdivision carefully with your property manager and legal counsel.
What are the tax implications for foreign buyers, and how does ABSD apply?
Foreign investors purchasing industrial property in Singapore trigger Additional Buyer’s Stamp Duty (ABSD) at rates of 15% for permanent residents and 20% for foreign entities. These are due at the time of purchase completion and are non-recoverable. Standard Buyer’s Stamp Duty (BSD) of 3–4% also applies. Annual Property Tax on industrial buildings ranges from 5.5–7.5% of the assessed annual value. Rental income is subject to corporate tax (5% for certain industrial entities) or personal income tax (dependent on residency). Depreciation allowances are available if claimed on corporate returns. Consultation with a tax advisor familiar with Singapore real-estate rules is essential for international buyers to model cash-on-cash returns accurately.
Is there a Seller’s Stamp Duty (SSD), and what are the holding-period consequences?
Yes, Singapore imposes Seller’s Stamp Duty if the property is sold within three years of purchase. The rate is 16% if sold within the first year, 8% in year two, and 4% in year three. After three years, no SSD applies. This creates a “lock-in” incentive for short-term traders and discourages rapid flipping. For a buy-to-hold investor planning a 5+ year hold, SSD is not a concern. However, if circumstances force an early exit, the SSD is a significant transaction cost. A S$28M purchase sold after 18 months would incur ~S$2.24M in SSD alone, materially impacting IRR. This is a key factor in lease-hold decisions: with only ≈21 years remaining, transaction timing becomes critical to maximise holding periods and minimise tax leakage.
How does the remaining leasehold tenure affect financing and resale prospects?
One KM has approximately 21 years remaining on its 30-year leasehold. Most banks will finance up to 60–70% LTV on a leasehold with 20+ years remaining, though some tighten criteria as remaining tenure drops below 15 years. For an investor seeking a seven-year hold, the property exits with ≈14 years remaining—still financeable but at tighter margins. Resale demand is driven by refinancers and buy-to-hold operators; owner-occupiers typically avoid sub-15-year leases due to balance-sheet concerns. To maximise exit optionality, plan a 5–7 year hold maximum and consider lease renewal terms early in your ownership. Note: Singapore industrial leases do not typically have renewal-of-tenure clauses; at expiry, the plot reverts to the State, making residual value highly dependent on redevelopment prospects (unlikely for industrial land in Tuas through 2045).
What is the typical rental yield, and how stable is the tenant base?
Gross rental yield on One KM is approximately 5.5–6.5% per annum, depending on tenant profile and unit configuration. A typical 1,800-sqm whole-floor unit leases at S$0.58–S$0.68 psf/month, generating ~S$1.05M–S$1.47M annual rent. After MCST (≈S$2.80 psm/year, ≈S$50k–S$60k annually), property tax (~S$1.5%–S$2% of value), maintenance reserves, and allowance for 5–8% vacancy, net yield typically ranges 3.5–4.8% for stabilised holdings. Tenant stability is strong; food manufacturers and electronics assemblers typically sign 3–5 year leases with renewal options. Turnover is ≈15–20% annually. Rental growth in Tuas has averaged 3–4% per annum over the past decade, below CBD average but steady. Your yield model should assume conservative rental inflation (2–3%) and annual expense escalation of 2–2.5% to be conservative.
What is the building age, and are there major capex forecasts for the next 5 years?
One KM was completed in 2015, making it nine years old as of 2024. The building was subject to a major refurbishment in 2022 including roof waterproofing, internal repainting, fire safety systems upgrade, and structural engineer certification. The MCST maintains a building-sinking fund (contribution ~S$1.50 psm/year, separate from the MCST management fee) for major works. Anticipated capex for the next 5–7 years includes: façade cleaning and touch-up (≈S$80k–S$150k, 2025–2026), lift modernisation and safety upgrades (≈S$60k–S$120k, 2027–2028), and parking surface overlay (≈S$40k–S$80k, 2028–2029). These are manageable; no major structural or systemic failures are anticipated. However, building age increases risk: waterproofing performance should be monitored; if roof/envelope issues emerge, rectification costs can escalate rapidly. Reserve 1–2% of annual rent for contingency capex.
What are the en-bloc redevelopment prospects for this property?
En-bloc redevelopment is unlikely for One KM in the foreseeable future. Singapore’s Urban Redevelopment Authority (URA) Master Plan designates Tuas as a long-term strategic industrial zone; conversion to residential or higher-value commercial use is not contemplated within the 20-year planning horizon. The building is individually strata-titled (not part of a larger development), and consolidating multiple strata units for collective sale is complex and costly. More importantly, the remaining 21-year leasehold makes collective action unattractive to majority owners; most investors prioritise a 5–7 year hold and exit before tenure declines. If Singapore’s industrial policy shifts dramatically (very unlikely), the State could compulsorily acquire the land at fair-market value, but this would trigger compensation to the owner, not a windfall. Plan on zero redevelopment premium; hold for income only.
How many parking and loading spaces does One KM provide, and are they sufficient?
One KM provides 150 on-site hardstanding parking spaces: 120 standard car spaces and 30 heavy-vehicle bays (for lorries, tankers, or industrial trucks). Parking is allocated to tenants on a pro-rata basis; a 1,800-sqm tenant (full floor) typically receives ≈12–15 spaces. Loading dock provision includes four ground-level weather-protected bays with level-access ramps, suitable for articulated vehicles, forklifts, and automated guided vehicles. Peak-hour loading is managed via a traffic management system; reverse-traffic protocols are enforced during morning and evening peaks to minimise congestion on Tuas Loop. Most occupiers report that parking and loading are adequate for their operations. However, multi-tenant stacking (e.g., four units per floor, each sub-leased) can create peak-hour contention; larger tenants favour exclusive-use full-floor agreements partly to secure dedicated parking and loading slots.
What are typical MCST fees and maintenance responsibility, and is there a sinking fund?
MCST management fees for One KM are approximately S$2.80 per sqm per annum (≈S$238k–S$790k annually for a 1,800–2,800 sqm lease), plus a sinking-fund contribution of ≈S$1.50 psm per annum reserved for major capital works (roof, lifts, common areas). Total effective MCST cost is ≈S$4.30 psm/year. The MCST council, elected by registered subsidiary strata proprietors, oversees maintenance of common areas (lifts, loading docks, carpark, fire safety systems, building envelope). Individual units are tenant-responsible for internal fitout, finishes, and private-use plant and machinery. Disputes over cost allocation (e.g., who pays for façade cleaning, whose lift wear is whose responsibility) are common in multi-tenant strata schemes; clear sublease language and an engaged MCST can minimise friction. Budget for uncapped MCST escalation of 3–4% annually; some years are benign, others see spike costs when major works come due.
How liquid is the resale market for industrial properties in Tuas, and what are typical time-to-sale and price movement?
The Tuas industrial market is moderately liquid; a well-leased, stabilised unit like One KM typically attracts qualified buyers within 60–120 days of marketing, particularly if priced competitively and vacant possession (after lease expiry) is available. Asking prices in Tuas have ranged S$0.90–S$1.30 psf for modern buildings; transaction prices usually achieve 90–95% of asking within the 3-month marketing window. Price appreciation has averaged 2.5–3.5% annually over the past decade, largely driven by rental growth and macro real-estate inflation, not speculative demand. Distressed sales (forced liquidation, tenant collapse) can take 6–12 months and realise 70–80% of stabilised market value, so maintain adequate cash reserves to weather short-term vacancies and avoid forced sales. Resale cycles are longer than CBD office/retail; patience and a realistic exit price are essential to achieving desired returns.
What types of businesses are typically best suited to One KM, and are there any restricted occupier sectors?
Best-suited occupiers include food processors (bakeries, beverage bottling, spice/condiment blending), electronics assembly, semiconductor packaging, pharmaceutical tablet/capsule manufacturing, cosmetics production, and contract logistics operators. These sectors have strong margins, long lease commitments, and low environmental nuisance. Restricted uses include heavy chemical manufacturing (Class 3B or higher under Pollution Control regulations), hazardous-waste storage, leather tanning, metal electroplating, and certain food rendering. The master lease explicitly prohibits noxious trades (odour, noise, vibration complaints to Planning Authority result in violation notices and potential lease termination). Tenants in regulated sectors (food, pharma) must obtain Health Ministry and/or Agri-Food & Veterinary Authority permits, which the landlord typically requires as a lease condition. Occupier vetting by a property manager familiar with Tuas industrial compliance is recommended to avoid tenant default or regulatory penalties that could affect building reputation and future leasing.
How is GST (Goods and Services Tax) or property tax handled on industrial leases and sale transactions?
Singapore’s Goods and Services Tax (GST, 8% as of 2024) applies to commercial and industrial property rentals. Most industrial leases are structured with rental expressed as “GST-exclusive,” meaning the tenant reimburses the landlord for GST on top of the agreed base rent. The landlord then remits GST to the Inland Revenue Authority of Singapore (IRAS). Certain non-profit and statutory bodies may claim GST exemption if registered; verify with your tenant. Annual Property Tax on industrial buildings is assessed by IRAS at ≈5.5–7.5% of the annual rental value. There is no capital-gains tax on property sale in Singapore, but Buyer’s Stamp Duty (BSD, 3–4%), Seller’s Stamp Duty (if sold within 3 years), and foreign investor ABSD all apply. Lease renewal negotiations should explicitly address GST reimbursement clauses and clarify whether rental escalations are applied to the base rent pre-or post-GST. Engage a tax advisor to model true cash flows including all tax obligations.
What is the process for financing an industrial property purchase, and are there lender restrictions for foreign buyers?
Most Singapore banks (DBS, OCBC, UOB, Standard Chartered, Maybank) offer term loans for industrial property purchases at 60–70% LTV, with tenures of 5–25 years. Interest rates typically float at 2.5–3.5% above the Singapore Interbank Offered Rate (SIBOR) or prime lending rate. Lender requirements include: valid purchase agreement, building survey and valuation by an accredited valuer, evidence of rental income (lease agreements), tax clearance, and personal financial statements. Foreign buyers face additional scrutiny: most banks require proof of residency, currency conversion clearance from the Monetary Authority of Singapore (MAS), and acceptance that ABSD (15–20%) is non-financeable (must be paid in cash at completion). Non-citizen permanent residents qualify for most loan products; non-residents may face tighter LTV (50–60%) or higher interest-rate premiums. Financing typically closes 2–4 weeks after agreement; plan accordingly if you need to close quickly. Avoid variable-rate loans if you have limited hedging capability; fixed-rate terms offer certainty.
Are there any utility cost considerations, and can I negotiate power/water rates with suppliers?
One KM is connected to PUB (Public Utilities Board) water and SP Group electricity mains. Individual metering per unit allows tenants to pay utilities directly; landlord typically does not take a utility markup. Electricity rates are ≈S$0.20–S$0.28 per kWh (industrial tariff), while water is ≈S$1.30–S$1.50 per cubic metre. Rates are set by the utility and are not negotiable; however, energy-efficient tenants (e.g., LED lighting, high-efficiency motors) can reduce consumption significantly. Some larger tenants request on-site renewable energy (rooftop solar) or efficiency audits; One KM’s 2022 refurbishment included LED retrofit, reducing lighting load by ~25%. Standby generator fuel (diesel) is maintained by the MCST and cost-shared among tenants; it is typically not a material line item unless there are frequent outages. Industrial occupiers should budget 3–5% of operating costs for utilities and include efficiency performance in tenant-selection criteria to manage long-term cost escalation.

This review is provided for informational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy or sell the property. All information, including financials, zoning status, and market data, is based on publicly available sources and may be subject to change. Prospective investors should conduct independent due diligence, including building surveys, legal title verification, financial audits of tenant accounts, and consultation with qualified tax, legal, and financial advisors familiar with Singapore real-estate regulations. No guarantee is made regarding the accuracy or completeness of this review. The presence of a company name, tenant information, or commercial description does not imply endorsement, partnership, or factual certification. Lease structures, MCST fees, regulatory compliance, and property tax are subject to change; verify all material facts with the seller’s solicitors and managing agents before committing to a purchase. Foreign buyers should note Additional Buyer’s Stamp Duty (15–20%), Seller’s Stamp Duty (if applicable), and financing restrictions. Past rental and price performance are not indicative of future returns.

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