Commercial & Industrial Properties Singapore - Sales & Rental
(65) 6100 8123
Defensive B2 Industrial Investment with Bulk Purchase Upside
Defensive Capital Play . Rental Resilience . Occupancy Strength
Investment Opportunities Key Advantages
GATE+: Rare new‑launch B2 strata units in a >95% occupied precinct for Sale, indicating tight supply and durable demand
Fresh 33‑year lease from 2025 – significantly longer runway than resale comparables
Projected gross rental yield of 5.5–6.0% with strong rental demand
'Next door' land bid prices have risen ~16% in one cycle – built‑in equity cushion
No Additional Buyer’s Stamp Duty (ABSD) – foreigners eligible to purchase, making it accessible to a broad investor pool.
B2 factory assets have shown approx. 38.76% capital appreciation from 2020–2026, comparable to private condos.
B2 rentals have enjoyed 20 consecutive quarters of growth, demonstrating strong resilience.
Entry quantum for many units remains below S$1 million, with attractive PSF benchmarks given specifications and tenure.
Fresh 33‑year tenure from 2025 creates a tenure arbitrage over older 30‑year buildings with only 15–18 years left.
Bulk purchase strategies can create internal clusters, amalgamation, improve asset control, and prepare for larger tenant profiles.
A Supply‑Constrained Asset Class.
The investor’s mantra is “buy scarcity.” In the Jurong/Pioneer B2 market, scarcity is acute. Buildings like West Connect (99% occupied), I Space (99%), Pioneer Junction (96%), and Eco Tech (95%) demonstrate that modern B2 space is perennially in demand. Yet the supply pipeline of new strata‑titled B2 ramp‑up developments is virtually empty. GATE+ is the first and possibly last major launch of this type for the foreseeable future. For an investor, securing a unit here means acquiring a rental asset in a market where tenants have very few alternatives – a landlord’s market.
Tenure Arbitrage.
Resale B2 properties in the same cluster typically have 15–18 years of lease remaining because they were built on 30‑year leases starting 2010–2013. GATE+ offers a full 33‑year term from August 2025. This extended runway has three direct financial benefits: first, banks are more willing to lend on longer‑tenure properties, increasing liquidity and future buyer pools; second, tenants on longer leases (or owner‑occupiers purchasing from you) perceive greater security and are willing to pay a premium; third, the longer holding period allows you to ride multiple rental cycles and exit at an optimal time. Compared to a resale unit at West Connect where lease decay is already eating into value, GATE+ preserves your capital base.
Attractive Entry Quantum and Yield.
With most standard units from approximately 1,615 sqft starting below S$1m, GATE+ offers one of the lowest entry points for a new-launch industrial asset in a primary growth corridor. At a projected conservative rental of $2.50 to $3 psf, the gross yield sits at a healthy 5.5% to 6% – significantly outperforming residential yields (2–3%) and competing favourably with commercial office returns. The rental market itself is on a record run: the JTC All‑Industrial Rental Index has posted 20 consecutive quarters of growth, reflecting strong underlying demand from manufacturing, logistics, and e‑commerce sectors.
Rental Resilience & Occupancy Strength
Rental data indicates that industrial rentals in this region have experienced 20 consecutive quarters of growth, a testament to their resilience even through macroeconomic volatility. In the immediate cluster, comparable B2 developments show very high occupancy levels:
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West Connect – approx. 99% occupancy.
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I‑Space – approx. 99% occupancy.
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Pioneer Junction – approx. 96% occupancy.
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Pioneer Point and Pioneer Centre – typically 94–95% occupancy.
These figures suggest that vacancy risk in the area is low, especially for modern, well‑specified units. GATE+, being newer with superior specifications and a fresh lease term, is well positioned to capture tenants and command a rental premium over ageing stock with shorter remaining leases.
Based on the investment prospectus, sample modelling for a typical ~1,615 sqft unit with an entry price around S$807,300 (~S$500 psf) and a targeted rent of S$2.50 psf indicates potential gross yields around 6%, subject to market conditions and final negotiated rents.
Using conservative appreciation assumptions of approximately 3% per annum, sample projections suggest:
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Over a 5‑year holding period, potential capital profit in the region of S$128k.
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Over a 10‑year holding period, potential capital profit in the region of S$277k.
These illustrative numbers highlight the appeal of GATE+ as a medium‑ to long‑term hold, particularly when combined with the structural supply tightening expected beyond 2028 as new multi‑user B2 supply remains limited.
Land Cost Appreciation – Built‑in Equity.
Back‑to‑back state land sales on Tukang Innovation Drive tell a compelling story. Plot A was awarded at S$1,752.85 psm per plot ratio; Plot B, in the very next cycle, closed at S$2,033.71 psm per plot ratio – a 16% jump. This means the replacement cost of building an equivalent facility has already risen substantially. Early buyers at GATE+ are effectively acquiring at the Plot A land cost basis, with an immediate equity uplift relative to future supply. As infrastructure like the JRL and Tuas Mega Port comes online, land values in this corridor are expected to continue their upward trajectory.
Bulk Purchase – Strategic Multi-Unit Acquisition
For sophisticated investors and larger owner‑users, bulk purchase at GATE+ can deliver strategic benefits beyond simple unit‑by‑unit ownership.
Key advantages of bulk or multi‑unit strategies:
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Operational flexibility: larger operators can consolidate operations across multiple contiguous units, improving workflow and reducing fragmentation risk.
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Tenant strategy: investors can curate an internal portfolio mix (e.g. smaller units for SMEs, larger amalgamated spaces for anchor tenants) to optimise yield and stability.
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Stack control: owning multiple units within the same “stack” or level allows for more coordinated planning of improvements, shared fit‑out, or eventual repositioning.
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Exit optionality: units can be divested individually or as a block, catering to different buyer profiles and market conditions.
The “Choiced Stack” concept emphasised in the GATE+ acquisition report suggests securing strategically located units with superior logistics features (e.g. proximity to passenger lifts, extra car lots, direct 20‑footer loading areas) to maximise operational efficiency and asset desirability. For investors, focusing on such units may enhance rentability and long‑term value.
Investor Snapshot Table
Discuss Your GATE+ Investment & Bulk Purchase Plan
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A one‑to‑one investment briefing with yield and cash‑flow scenarios.
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Custom bulk purchase mapping, proposing stack or unit combinations that fit target budgets and risk profiles.
CosySingapore.com
Connecting People with the Right Space
We look into industrial and commercial properties in Singapore. Contact us for honest, informed advice on commercial and industrial property solutions
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Desmond Tan
Licensed Real Estate Consultant
CEA Registration No: R007497J
Phone: +65 6100 8123
Email: Cosysingapore@gmail.com
Web Site: www.cosysingapore.com
Office Hours:
Monday – Sun: 8:30am – 8:00pm
Public Holidays: By appointment
All information is provided in good faith based on available project data and is subject to change by the developers or relevant authorities. Floor plans, specifications and prices are indicative and subject to final confirmation. This page does not constitute a formal offer. Buyers are advised to conduct independent due diligence and seek professional legal advice before making any purchase decision.