Category: Food Factory

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