SingPost will invest S$30m to boost capacity at its Tampines logistics hub and plans to move all operations there from SingPost Centre (SPC) which is also up for sale or lease.
We believe asset monetisation and repaying shareholders remains the way forward.
Moving out of SingPost Centre creates significant potential
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If all operations are shifted there, about 376,000+ sqft of industrial space could be freed up which represents an estimated S$ 9m leasing opportunity annually based on S$2/psf.
It could also potentially apply for a conversion of land use from industrial to office/retail which would lift SingPost Centre’s valuation significantly but this would be subject to regulatory approvals. Currently, out of SingPost Centre’s 1.47m sqft of GFA, 37% is classified industrial, 45% office and the rest retail.
New business model needs to be forged
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Value lies in asset monetisation
Read more at SGinvestors.io.
Above is an excerpt from a report by Maybank Research. Clients of Maybank Securities may be the first to access the full PDF report @ https://www.maybanktrade.com.sg/.
