Food factory is a specialize type of industrial factory that has a ready license for food production like cooking, process, and packing food. Unlike other industries, this type of food factory does not have to change of use to operate food processing.
There are about 3.68 million of food factory in the pipeline that is expected to be completed in 2020 with most of these food factory located in the North, West and Eastern region of Singapore. One of the more prominent projects is JTC Bedok Food City that has a total of one million sqft gross floor area.
These food factories are in demand in line with the surge of food delivery services from Grab Food, Deliveroo, and Food Panda. Deliveroo has its central kitchen in CT Hub 2 while Food Panda has its central kitchen at Woodlands Industrial Xchange.
Zoning of Food Factories
Most of the food factories are in the North and West region and typically for rent under JTC. The sizes for the food factories generally ranges from 3,000 sqft to 40,000sf.
Food Factories in Macpherson, Bedok, Pandan Loop tend to be more popular as compared to those in Senoko and Tuas as these are classified under B2 industrial, away from a residential zone.
Sustainable Demand for Food Factories
The rise in popularity of Food delivery services such as GrabFood, DeliveryRoo, FoodPanda are driving up the demand for Food Factories. Nowadays, restaurants, F&B Outlet and even some Hawker stalls are going online to satisfy consumer demand for food delivery.
This change is consumer activities is more apparent especially during circuit breaker in Singapore that happens for 2 months. Those with online presence can see their business flourish, though there are also some that close down especially those that do not have online presence. Business, F&B and delivery service have to change they operate to stay relevant in this current industry.
Stable Rental and Transaction Prices
With the pent up demand for food factories, rental and resale prices are expected to be healthy. Rental rates and asking prices differs much especially from location.
Based on above chart, transactions in the East and central region outperform those in the western and northern region, likely due to the proximity to city centre.
Rental yields are expected to be 5 to 7% for investors looking at this niche market.
Some of the Rare Food Factory for Sale include
The Tai Seng Hub Food Factory is a rare and highly sought-after freehold asset designed specifically to meet the stringent licensing standards of modern food manufacturing. Engineered with high-spec ramp-up accessibility, it allows logistics fleets to drive directly to individual production doorsteps for seamless, time-critical distribution.
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Gourmet Xchange at Kallang is one of the largest purpose-built strata food factory factory in Singapore. Developed as a fully integrated ecosystem for food production, processing, storage and distribution, the project raises the bar on planning and utilization of food industrial space in a land-scarce city.
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EcoFood @ Mandai offers a wide variety of facilities to enhance the daily operations adding to the efficiency of productivity for the businesses in the food industry. One of its key characteristics is the availability of a number of freight and passenger elevators which provide efficient vertical travel at all levels.
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CT Pemimpin is a modern commercial development located in the heart of Singapore’s vibrant industrial and business hub. Offering flexible spaces designed to cater to a range of businesses, from light industrial to office use, CT Pemimpin provides a strategic location with easy access to major transport links.
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Harrison Food presents a new freehold food factory at former Harrison Industrial Building. This Food Factory stands as a paragon of modern food manufacturing, boasting state-of-the-art infrastructure that supports efficient and high-quality food production processes.
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