CT FoodNex Food Factory

When it comes to factories, it might appear that they can serve any trade or business purpose. However, there are clear distinctions between a general industrial factory and a food factory, even if they share similar zoning classifications in the Master Plan.

Use of Premises

General industrial factories typically fall under the B1 or B2 industrial zones, while food factories used for food production are usually categorized as B2 industrial in the Master Plan. Additionally, there are other classifications, such as business parks, which are primarily suitable for Research & Development (R&D) or knowledge-intensive activities.

B2 Zoning, Yet Different

Although both food factories and general industrial factories can be zoned as B2 industrial, the approved purposes for these premises differ. A B2 general industrial factory accommodates heavy industrial trades, whereas a B2 food factory is designed for food production activities. It’s important to note that these uses are not interchangeable, despite sharing a B2 zoning classification in the Master Plan.

 

Differences in Rates

food factories typically command higher rental rates or sale prices, partly due to the approved usage of the premises and the demand for food factories in Singapore. Consequently, a B2 factory with significantly lower rental rates or sale prices is unlikely to be a B2 approved food factory; it may instead be a B2 general industrial space.

Proper due diligence is crucial for determining whether a factory falls under the B2 general industrial category or is an approved B2 food factory. Factors such as location, specifications and remaining tenure can also influence prices.

In summary, while both general industrial and food factories share a B2 zoning, they serve distinct purposes and come with different rental rates or sale prices. It’s essential to carefully assess a factory’s characteristics to ensure it aligns with your business needs and objectives.