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Q4 Summary Report

Against the backdrop of weak global economic conditions, net allocation of PIL remained resilient at 101 ha compared to 200.9 ha in 2008.  The performance was supported by a significant allocation in the 4Q of 2009 for the integrated yard facility in Tuas as well as steady take-up for Seletar Aerospace Park. Overall, gross allocation of PIL fell 34% to 175.6 ha in 2009 while termination increased 17% to 74.7 ha.   The net allocation of RBF fell into negative territory at -24,800 sqm, compared to 90,700 sqm in 2008.  This was attributed partly to the Business Park segment, which recorded the biggest fall in net allocation.  However, this was from an exceptionally high base in 2008 which benefited from the successful completion and take-up of Fusionopolis Phase 1. Elsewhere, weak business conditions led to negative net allocations for the Flatted Factory and Standard Factory segments.  The occupancy level for RBF rose by 0.4% point to hit 97.2% in 2009 as the drop in demand was offset by lower supply with stock being retired for product renewal.

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The net allocation of Prepared Industrial Land (PIL) bounced back into positive territory, achieving 14.7 ha in 3Q09 from -32.8 ha in the previous quarter. However, on a year-on-year basis, net allocation declined by 66% from 43.5 ha in 3Q08. The positive performance was supported by higher gross allocation of 25.7 ha, compared to 5.4 ha in 2Q09. Termination registered a 71% fall from the previous quarter to 11 ha in 3Q09.

The net allocation of JTC’s Ready-Built Facilities (RBF) remained in negative territory in 3Q09 at -10,300 sqm, which was weaker than the -7,800 sqm recorded in the previous quarter. This was due to a 10% quarter-on-quarter decrease in gross allocation to 15,900 sqm from 17,800 sqm in 2Q09. Termination rose by 3% to 26,200 sqm from 25,600 sqm in 2Q09. The occupancy level for RBF fell slightly to 97.1% in 3Q09, compared with 97.4% in the previous quarter.

Reflecting the subdued economic environment, the net allocation of Prepared Industrial Land (PIL) fell into negative territory at -32.2 ha in 2Q09 from 14 ha in the previous quarter. The negative performance was experienced across most PIL segments. The Generic Land segment and Specialised Parks segment recorded net allocations of -7.1 ha and -25 ha respectively.

The net allocation of JTC’s Ready-Built Facilities (RBF) remained in negative territory in 2Q09 at -7,800 sqm, albeit with a modest improvement from the -8,900 sqm recorded in the previous quarter. This was due mainly to higher gross allocations of 17,800 sqm, reflecting a 64% quarter-on-quarter increase from 10,800 sqm in 1Q09. Termination rose by 30% to 25,600 sqm from 19,700 sqm in 1Q09. Meanwhile, the occupancy level for RBF was stable at 97.4% in 2Q09.

The net allocation of Prepared Industrial Land (PIL) rose to 15.3 ha in 1Q09 from 8.5 ha in the last quarter. However, on a year-on-year basis, net allocation fell 87% from 114.9 ha in 1Q08. The improved quarterly performance was supported by the Generic Land segment, which contributed 89% of the total net take-up for PIL. Overall, gross allocation of PIL was higher at 30.8 ha, up from 14.7 ha in 4Q08. However, termination also increased, from 6.1 ha in 4Q08 to 15.5 ha.

Faced with a challenging economic climate, the net allocation of JTC’s Ready-Built Facilities (RBF) remained in negative territory in 1Q09 at -8,900 sqm, compared to -1,200 sqm in the previous quarter. This was due mainly to lower gross allocation of 10,800 sqm, a 46% quarter-on-quarter decline from 20,000 sqm in 4Q08. Meanwhile, the occupancy level for RBF remained healthy at 97.7% in 1Q09. While demand was lower, overall supply of RBF declined due to retirement of some stock for product renewal.

JTC achieved a fifth consecutive year of positive net allocation of Prepared Industrial Land (PIL) in 2008. This sustained performance was against the backdrop of global economic uncertainties and a very challenging environment towards the latter part of the year. The net allocation level was 200.9 hectares (ha), a 41% drop from the 10-year high of 341.2 ha level achieved in 2007. Nonetheless, it should be noted that the latter was on the back of exceptionally strong economic growth last year, which has since declined significantly. In terms of segments, the Generic Land and Business Park segments registered impressive performances in 2008, with net allocations hitting their highest levels over the past 10 years. However, these were off-set in part by a lower gross allocation level of 98.4 ha in the Specialised Parks segment.

The occupancy level for JTC’s Ready-Built Facilities (RBF) rose by 3.3%-point to reach a 10-year high of 96.8% in 2008. Supported by a strong performance in the first half of the year, the net allocation of RBF increased 2% year-on-year to a robust level of 90,700sqm in 2008. The main contributor was the Business Park segment, where the net allocation improved from -1,700 sqm to 48,300 sqm, due to good take-up of space in the Fusionopolis Phase 1 project.

The net allocation of Prepared Industrial Land (PIL) was at 34.5ha for 3Q08, similar to that achieved in the previous quarter. However, on a year-on-year basis, it represented a drop of 38.5%, from the 56.2ha level achieved in 3Q07. The gross allocation of PIL moderated to 56.7ha in 3Q08, as compared to 64.1ha in 2Q08. At the same time, termination dropped to 22.2ha in 3Q08, from 30.1ha in 2Q08.

The divestment of a portfolio of our high-rise ready-built facilities (RBF) to Mapletree Investments Pte Ltd was completed on 1 July 2008. With the completion of this divestment exercise, JTC's total RBF space is reduced from 4.5 million sqm to 3.4 million sqm. Hence, from this quarter onwards, the report will analyse the performance of JTC’s remaining RBF portfolio on an aggregated basis.

The net allocation for Ready-Built Facilities (RBF) fell into negative territory in 3Q08 at -500 sqm, a reversal from the positive 70,800 sqm achieved in the previous quarter. The weaker performance was due mainly to lower gross allocation of 29,800 sqm, down 69% from 94,900 sqm in the 2Q08. Nonetheless, the RBF occupancy level remained very healthy at 95.6%.

The net allocation for Ready-Built facilities (RBF) in 2Q2008 reached 84,100 sqm, 2.2 times higher than that in the previous quarter (38,300 sqm). It in turn boosted the RBF occupancy level by 1%-point to 94.9%, a new record level for JTC. This performance was supported by a strong gross allocation of 159,100 sqm, the highest level since 2004. Of the total RBF net allocation, 50.8% was contributed by the Business Park segment, with Stack-up Factory space contributing another 31%. Termination level has, on the other hand, increased to 75,000 sqm, higher than the level of 51,200 sqm in 1Q2008.

The net allocation of Prepared Industrial Land (NET) eased to 34ha in 2Q2008, down from a strong performance of 114.9ha in the previous quarter. On a year-on-year basis, it was also lower than the level of 64.4ha achieved in 2Q2007. The gross allocation of PIL correspondingly moderated to 64.1ha in 2Q2008, as compared to 120.4ha in 1Q2008. At the same time, termination increased 5.5 times to 30.1ha, from 5.5ha in 1Q2008.

The net allocation for Ready-Built facilities in 1Q2008 was 38,400 sqm, six-fold higher than the corresponding period in 2007 (of 6,700 sqm). It nonetheless represented a moderated growth from what was achieved in 4Q2007. It helped to boost our occupancy level for Ready-Built facilities to 1.3%-point to 93.9%; a record level for JTC. 68% of the total RBF net allocation was contributed by the Flatted Factory segment, with Standard Factory space contributing another 21%. Termination level has, on the other hand, increased to 51,100 sqm; this is 13% higher as compared to 45,300 sqm in 1Q2007.

The net allocation of PIL achieved a resounding 114.9 ha in the first quarter of 2008. This positive net allocation level was due mainly to the strong gross allocation performance - at 120.4 ha. The generic land segment played a key role with the achieved net allocation of 81.8 ha, just 9 ha shy of the 2007's full year achievement of 90.8 ha. This was seen as a followed-through from the general expansion across the manufacturing sector for 2007.

Net allocation for Ready-Built facilities broke the previous record high of 179,600 sqm in 2005, with a new level of 214,700 sqm in 2007. The achievement was supported mainly by the increases in the net allocation of Flatted Factory space to 116,400 sqm, Stack-up Factory space to 45,500 sqm and Standard Factory space to 43,800 sqm. The overall occupancy for Ready-Built facilities improved 4.9%-points to 92.7%.

Net allocation of PIL achieved another record high of 341 ha in 2007, compared to last year’s 268.5 ha. The strong performance was attributed mainly to the robust levels of gross allocation at 450.5 ha. Specialised Parks contributed to 250.2 ha of the total net allocation of PIL, with significant growth from Jurong Island and Wafer Fab Park, with a net take up of 156.3 ha and 41.6 ha. The net allocation for Generic land achieved 90.8 ha, marking a general expansion across the industrial cum manufacturing sector for 2007.

Net allocation for Ready-Built facilities was a robust 75,100 sqm, achieved with a strong gross allocation of 121,100 sqm and low termination of 46,000 sqm. This growth was broad-based, with Flatted Factory, Stack-up Factory and Business Park space all experiencing positive growth in their net allocations for the quarter. The Flatted Factory segment registered a two-fold increase in its net allocation to 54,000 sqm. The strong overall net allocation pushed the occupancy rate for Ready-Built facilities to 91%.

Net allocation of PIL continued to be positive at 55.9 ha in 3Q 2007, supported by strong performance achieved for the Logistics Park, Business Park and Jurong Island under the Specialised Parks segment. Logistics Park contributed to 32% of the overall net take-up for PIL. Overall demand for PIL increased to 4,785 ha in 3Q 2007.

Net allocation for Ready-Built facilities returned strongly to 58,200 sqm in 2Q 2007 from 6,700 sqm in 1Q 2007. The achievement was supported mainly by the increases in net allocation of Flatted Factory space to 27,800 sqm, and Standard Factory space to 21,900 sqm for the quarter. Technopreneur space also experienced growth in its net allocation to 1,800 sqm in the quarter. Occupancy for Ready-Built facilities improved to 89%.

Net allocation of PIL continued to be positive at 64.4 ha in 2Q 2007, easing from a high 95.7 ha in the last quarter. The positive net allocation in PIL was supported by strong performance of gross allocation at 72.3 ha while termination remained low at 7.9 ha. Key segments that saw significant growth included the Tuas Biomedical Park and Wafer Fab Park, with a net take up of 19.9 ha and 16 ha respectively in the quarter. Net allocation for Generic land also rose 33% to 24.4 ha in 2Q 2007.

Following a strong performance in 2006, gross allocation for Ready-Built Facilities in 1Q2007 eased to 52,000 sqm, from 67,300 sqm recorded in 4Q2006. At the same time, termination also declined to 45,400 sqm from 52,600 sqm, resulting in an overall decline in net allocation to 6,600 sqm. Overall occupancy in Ready-Built Facilities has remained healthy at 88%, compared to 4Q2006. For the quarter, Business Park and Technopreneur space are two product segments that have experienced positive growth, where their net allocation achieved are 4,600 sqm and 1,200 sqm respectively.

Net allocation of PIL registered a significant 90% improvement to 95.7 ha in 1Q 2007 from 50.4 ha in the previous quarter. The improvement was due largely to the gain of 184% in net allocation observed for Specialised Parks where significant gross allocations were achieved by both Jurong Island (64.3 ha) and Wafer Fab Specialised Parks (7.1 ha). Net allocation for Generic Land declined to 18.3 ha, a result of higher termination at 8.5 ha for the quarter while gross allocation has been maintained at 26.9 ha. Overall termination for PIL has increased by 2 ha to 8.8 ha in 1Q 2007.

Net allocation for ready-built facilities continued its positive trend for the 3rd consecutive year since 2003. At 127,700 sqm, it was a strong performance despite not topping last year’s historical 10-year high of 179,600 sqm, and pushed the occupancy rate of ready-built facilities from 83.5% to 87.8%. In comparison with the previous year, the gross allocation for ready-built facilities was lower at 283,300 sqm, while termination was marginally higher at 155,600 sqm. The gross allocation and termination in 2006 were mainly contributed by Flatted Factory (43%), Standard Factory (26%) and Stack-up Factory (19%) segments.

Net allocation of PIL continued to break new ground, achieving 268.5 ha in 2006, which is 51% higher than the 177.6 ha achieved in 2005. The better than expected performance was due largely to a 56% increase in gross allocation to 317.4 ha for 2006, of which the Specialized Parks segment contributed about 60%. The Specialized Parks segment had continued for the 3rd consecutive year in achieving strong net allocations, growing by 75% or 68.2 ha more than last year to 158.9 ha. For the Generic Land segment, the net allocation performance was also a strong 109.5 ha, growing by 26% from the previous year.

Net allocation for ready-built facilities continued its positive trend for the 6th consecutive quarter in 3Q 2006. At 24,400 sqm, it was lower than last quarter's achievement of 42,900 sqm as well as last year's (3Q 2005) 95,300 sqm. Nonetheless, the positive net allocation has pushed occupancy rates of 85.4% to 87.3%. In comparison with the previous quarter, gross allocation for ready-built facilities in 3Q 2006 was lower at 67,100 sqm while termination was higher at 42,700 sqm. The gross allocation and termination in 3Q 2006 are mainly contributed by the conventional generic space such as Flatted, Standard and Stack-up Factory segments.

Net allocation of Prepared industrial land continued to register positive performance in 3Q 2006 with an achievement of 24.5 ha. Quarter-on-quarter, the net allocation was 64% lower than the 67.9 ha achieved in last quarter, while year-on-year, the result was 25% higher than the 19.6 ha achieved in 3Q 2005. The quarter's net allocation performance was driven mainly by Generic Land (65%). Specialized Parks did register significant gross allocations in the quarter, accounting for 65% or 30 ha of total Prepared industrial land's gross allocation. However, it also had significant terminations (20.1 ha out of a total of 21.6 ha in terminations). Generic land, which accounted for the remaining 35% or 16 ha of gross allocation in Prepared industrial land, had a low termination of 1.5 ha. For 3Q 2006, 35 companies took up Prepared industrial land, whilst 21 gave up their leases.

Net allocation of ready-built facilities registered an improvement to 48,900 sqm in 2Q 2006, vis-à-vis 41,700 sqm for 1Q 2006, continuing the 5th consecutive quarter in positive territory. Year-on-year, the 2Q 2006 performance is 8% below the 53,000 sqm registered in 2Q 2005. 2Q 2006 saw both gross allocation and termination at higher levels compared to 1Q 2006, at 19% and 21% respectively. Expansion in gross allocation was broad-based, with all segments of ready-built facilities registering improvements in gross allocation. On the termination front, the bulk of terminated ready-built space came from Flatted Factory, accounting for 17,800 sqm of the total terminated space of 31,900 sqm this quarter. This however, was still 23% lower than the previous quarter, and was below the average of approximately 23,000 sqm turnover observed each quarter for Flatted Factory termination in 2005.

Net allocation of Prepared industrial land continued to register positive performance with 68.8 ha in 2Q 2006. Quarter-on-quarter, the figure was about 54% of that achieved by the stellar performance of last quarter. On a year-on-year basis the net allocation was 8% lowered than 74.8 ha for 2Q 2005. The positive net allocation was supported by the strong gross allocation numbers in Generic land, which accounted for 71% of the PIL gross allocation. For the quarter, termination climbed to 17.5 ha from the decade-low of 1.4 ha in 1Q 2006, which is about twice the termination registered a year ago.

Continuing on the outstanding performance of 2005, net allocation of Ready-built facilities registered a strong positive 41,400 sqm in 1Q 2006, vis-à-vis 32,500 sqm for 4Q 2005 and -1,100 sqm in 1Q 2005. The strong net allocation was due to a 6% increase in gross allocation against a 16% decrease in termination against 4Q 2005. 1Q 2006 saw the continual broadbased improvement in most of the Ready-built facilties' gross allocation. On the other hand, termination in Ready-built space registered 26,700 sqm of which the bulk came from Flatted Factory of 23,400 sqm for 1Q 2006. Overall, the termination in Ready-built facilities is 16% and 30% lower with respect to the termination of 31,600 sqm in 4Q 2005 and 38,200 sqm in 1Q 2005.

Net allocation of Prepared industrial land improved 158% to 124.9 ha in 1Q 2006 from 48.5 ha in the previous quarter. This improvement was due largely to strong gross allocation of 91.3 ha in Specialised Park segment, out of the total 126.3 ha in gross allocation for Prepared industrial land. Overall gross allocation improvement is 124%, from the 56.3 ha of 4Q 2005. At the same time, termination in Prepared industrial land declined quarter-on-quarter to a low 1.4 ha from 7.8 ha in 4Q 2005.

Net allocation of ready-built facilities attained a high note to end 2005 at 180,400 sqm from 98,300 sqm in the previous year. This improvement was largely supported by the strong take-up in the Business Park segment, where net allocation improved to 130,400 sqm in 2005, from 7,400 sqm in the previous year. The Flatted factory segment also showed improvements with net allocation improving to 4,900 sqm in 2005, from -3,500 sqm. On the other hand, Standard and Stack-up factory segments registered a 38% and 73% decline in net allocation to 34,300 sqm and 10,700 sqm respectively in 2005. Overall, Ready-built facilities performance in 2005 saw a new high in net allocation only second to the highest record set in year 2000 during these past 10 years.

Both Generic Land and Specialised Parks registered impressive performance in 2005. Net allocation of Prepared industrial land registered 174.1 ha, the first 3-digit performance since 1997, and is an increase of 153% over the 68.9 ha registered in 2004. This improvement was due largely to the better performance of Specialised Parks, which saw net allocation improve to 88.6 ha from 29.7 ha in 2004. Termination for Prepared industrial land stood at the low of 25.5 ha. Overall, 2005 marked the highest net allocation and the lowest termination over the past 10 years.

Ready-Built facilities saw the completion of allocation of a large anchor tenant in Business Park. This gave rise to a Business Park Space net allocation of 104,945 sqm for 3Q 2005. Barring the effects of this single large allocation, net allocation for ready-built facilities declined from 53,441 sqm to -3,403 sqm, following a strong rebound in 2Q 2005. Demand was flat in generic products such as Flatted Factory, Standard Factory and Stack-up Factory which resulted in decline in net allocations. However, demand still saw growth in higher specifications space such as Business Park and Technopreneur Space. Termination of ready-built space increased by 13% to 43,858 sqm in 3Q 2005, from 38,753 sqm in the previous quarter.

Net allocation of Prepared Industrial Land declined 78% to 16.1 ha in 3Q 2005 from 74.8 ha in the previous quarter. The reduction was expected due to the lumpy nature of Specialised Parks allocation which accounted for 85% of the 74.8 ha in 2Q 2005, whilst demand was slower in 3Q 2005 across all industrial land segments. Overall, gross allocation of Prepared Industrial Land decreased 73% to 22.5 ha in 3Q 2005 from 83.2 ha in 2Q 2005. At the same time, termination also decreased by 25% quarter-on-quarter to 6.4 ha from 8.5 ha in 2Q 2005. On the year-on-year basis, net allocation increased slightly by 7% from 15.1 ha in 3Q 2004.

Net allocation of ready-built facilities rebounded strongly from negative territory in 1Q 2005, registering 53,485 sqm in 2Q 2005 compared to -460 sqm in 1Q 2005. With the exception of Flatted Factory and Technopreneur space, all segments of ready-built facilities recorded increases in gross allocation. Stack-up Factory, Standard Factory and Business Park segments registered increases in gross allocation of between five to nine folds to 14,696 sqm, 33,798 sqm, and 18,399 sqm respectively. Termination of ready-built space increased by 3% to 38,780 sqm in 2Q 2005, from 37,522 sqm in the previous quarter.

Net allocation of Prepared Industrial Land improved 116% to 74.8 ha in 2Q 2005 from 34.7 ha in the previous quarter. The improvement was due largely to higher gross allocation in both the Wafer Fab and Logistics segments. Overall, gross allocation of Prepared Industrial Land increased 121% to 83.2 ha in 2Q 2005 from 37.6 ha in 1Q 2005. Termination increased by almost three-fold quarter-on-quarter to 8.5 ha from 2.9 ha in 1Q 2005.

Following five consecutive quarters of positive performance, net allocation of ready-built facilities slipped into negative territory in 1Q 2005, registering at -460 sqm from 15,710 sqm in 4Q 2004. This decline was due largely to lower gross allocation, which fell 36% to 37,060 sqm from 58,360 sqm in 4Q 2004. With the exception of Flatted Factory and Technopreneur space, all segments for ready-built facilities registered declines in gross allocation. Stack-up factory, Business Park and Standard factory segments registered a 70%, 68% and 67% decline in gross allocation to 2,970 sqm, 2,050 sqm and 6,420 sqm respectively. Termination of ready-built space also declined 12% to 37,520 sqm in 1Q 2005, from 42,650 sqm in the previous quarter.

Net allocation of Prepared industrial land improved 12% to 34.7 ha in 1Q 2005 from 30.9 ha in the previous quarter. This improvement was due largely to lower termination in both the Generic land and Specialised parks segments. Termination declined 82% quarter-on-quarter to 2.9 ha from 16.3 ha in 4Q 2004. Gross allocation of Prepared industrial land also declined 20% to 37.6 ha from 47.2 ha in 4Q 2004. Both Generic land and Specialised parks registered positive performances in 1Q 2005.

Following two consecutive years of negative performance, net allocation of ready-built facilities achieved a turnaround into positive territory at 98,030 sqm in 2004 from -40,090 sqm in the previous year. This improvement was largely supported by the strong take-up in the Standard factory segment, where net allocation improved to 55,030 sqm in 2004, from -22,070 sqm in the previous year. The Flatted and Stack-up factory segments also showed improvements with net allocation improving to -3,550 sqm and 39,040 sqm in 2004, from -55,180 sqm and 21,080 sqm respectively. However, Business Park and Technopreneur space segments, registered a 53% and 73% decline in net allocation to 7,360 sqm and 145 sqm respectively in 2004.

Both Generic Land and Specialised Parks registered positive performance in 2004. Following two consecutive years of negative performance, net allocation of prepared industrial land returned to positive territory at 68.9 ha, from -22.3 ha in 2003. This improvement was due largely to the better performance of Specialised Parks, which saw net allocation improve to 30.7 ha from -51.2 ha in 2003. Lower termination of prepared industrial land, in particular for Jurong Island (2.2 ha compared to 87.4 ha in 2003) and Wafer Fab Park (0.3 ha compared to 19.7 ha in 2003) supported this improvement.

Net allocation of ready-built facilities stayed positive for the fourth consecutive quarter, improving 55% to 37,060 sqm from 23,850 sqm in the previous quarter. This improvement was supported by strong take-up in the Standard Factory and Stack-up Factory segments, which registered 108% and 48% rise in net allocation respectively. The Business Park and Technopreneur Space segments also showed improvements. However, Flatted Factory space slipped into negative net allocation (-1,440 sqm) following two consecutive quarters of positive performances.

Net allocation of Prepared Industrial Land registered a slight gain to 15.1 ha from 15 ha in 2Q 2004. Overall, gross allocation of Prepared Industrial Land increased 13% quarter-on-quarter to 29.7 ha from 26.4 ha, while termination rose 28% quarter-on-quarter to 14.6 ha from 11.4 ha.

Net allocation of ready-built facilities remained positive for the third consecutive quarter, improving 8% to 23,530 sqm from 21,780 sqm in the previous quarter. This improvement was due to a 6% increase in gross allocation of ready-built facilities to 64,380 sqm from 61,020 sqm in 1Q 2004. Termination also rose 4% to 40,850 sqm from 39,240 sqm in 1Q 2004. Gross allocation of ready-built facilities turned in mixed performance in 1Q 2004, with Business Park space registering more than twofold increase over the previous quarter.

Net allocation of Prepared Industrial Land increased 2.5 times to 14.8 ha from 6 ha in 1Q 2004. This was due largely to higher gross allocation, which more than doubled quarter-on-quarter to 26.4 ha from 12.8 ha in 1Q 2004. Termination rose 73% quarter-on-quarter to 11.6 ha from 6.7 ha in 1Q 2004.

Net allocation of ready-built facilities remained positive for the second consecutive quarter, improving 45% to 21,780 sqm from 15,040 sqm in the previous quarter. This improvement was due largely to lower termination, which declined 26% to 39,240 sqm from 52,970 sqm in 4Q 2003. Gross allocation of ready-built facilities also declined 10% to 61,020 sqm from 68,010 sqm in 4Q 2003. With the exception of Business Park space, which had benefited from a strong take-up at Biopolis and Changi Business Park the previous quarter, gross allocation of all ready-built facilities improved in 1Q 2004.

Net allocation of Prepared Industrial Land declined 15% to 6.1 ha from 7.2 ha in 4Q 2003. This was due largely to lower net allocation in the Generic land segment, which fell to 0.6 ha from 14.2 ha in the previous quarter. Overall, gross allocation of Prepared Industrial Land fell 63% quarter-on-quarter to 11.2 ha from 30.1 ha, while termination declined 78% quarter-on-quarter to 5.1 ha from 23.0 ha.

In 2003, gross allocation of ready-built space registered a 11% decline to 187,165 sqm from 210,188 sqm in 2002. All segments of the ready-built space saw declines with the exception of stack-up factory space, which registered a two-fold improvement in gross allocation. Termination for ready-built space increased 2% to 227,394 sqm, mainly from flatted factory space, which rose 26% to 147,966 sqm from 117,893 sqm. As a result, negative net allocation for ready-built space widened further to -40,230 sqm from –12,498 sqm in 2002.

The performance of Prepared Industrial Land remained in negative territory. Gross allocation on the whole doubled to 130.3 ha from 64.3 ha in 2002. This was mainly due to higher gross allocation recorded for Generic Land and for chemical logistics at Pulau Busing. However, higher termination recorded from TOL land in Jurong Island resulted in overall land given up rising 64% to 152.2 ha from 93.1 ha. Net allocation remained negative, but narrowed to 21.9 ha in 2003.

Net allocation of ready-built factories remained negative for the fifth consecutive quarter, but narrowed to –23,826 sqm from –29,260 sqm in the previous quarter. Flatted factory space registered lower negative net allocation of –17,657 sqm from –22,267 sqm. Business park space ended three consecutive quarters of negative net allocation, rising to 1,071 sqm. Technopreneur space however, registered its first negative net allocation since 2Q 2001.

Higher gross allocation coupled with lower termination led to a positive net allocation of 5.5 ha for Prepared Industrial Land. Termination fell 82% to 15.4 ha from a high base in 2Q 2003, which was mainly due to the return of TOL land in Jurong Island. Termination under the En-bloc Redevelopment (EBR) scheme was 11.7 ha, accounting for more than half of total termination in 3Q 2003. Generic land registered marginally higher net allocation of 7.4 ha, its 2nd successive quarter of positive performance.

The second quarter saw weaker performance across most product segments of JTC's Ready-built factories. Ready-built factories as a whole recorded wider negative net allocation of -28,533 sqm, compared to -2,237 sqm in the 1Q 2003. Flatted factories suffered its third consecutive contraction in 2Q 2003, with net allocation falling to -21,541 sqm from -5,348 sqm in 1Q 2003. Only Technopreneur space and Stack-up factories recorded positive, albeit lower, net allocations. Net allocation of prepared industrial land fell into negative territory at -69.4 ha from 35.1 ha in 1Q 2003. Gross allocation fell 78% to 14.2 ha from a high base in 1Q 2003, which benefited from the allocation of a huge 44.2 ha site at Pulau Busing. Termination was higher at 83.6 ha, but this was mainly due to more termination of TOL land being recorded for Jurong Island. However, generic land showed improvement, recording net allocation of 7.2 ha, ending five consecutive quarters of negative net allocation.

The first quarter of 2003 saw mixed performance across all product segments of JTC's industrial facilities amid continued uncertainties in the economic environment. The stack-up factory was the star performer of the ready-built segment, with net allocation returning to positive territory at 8,376 sqm in 1Q 2003, up from -2,070 sqm. Performance of the prepared industrial land segment improved in 1Q 2003, with net allocation rising to 35.1 ha, from 0.4 ha in 4Q 2002. Gross allocation of PIL jumped more than three-fold to 65.1 ha, boosted by a large allocation of land for logistics. This offset the impact of a 59% rise in termination to 30 ha in the quarter.

JTC Corporation's industrial facilities report for the year 2002 showed a generally weaker performance in most product categories, with the exception of the technopreneur space segment, which registered a three-fold improvement. Gross allocation of ready-built space fell by 5% from 220,959 square metres in 2001 to 209,905 square metres in 2002. Termination increased with overall space given up rising by 34% to 222,984 square metres. The performance of the prepared industrial land segment also weakened in 2002. Net allocation slipped from 48.6 ha in 2001 to a minus 27.6 ha in 2002.

JTC Corporation's third quarter 2002 report showed mixed performance for its ready-built facilities. Gross allocation of ready-built space registered an improvement of 39% to 64,087 square metres, with strong gains in the business park space and flatted factory segments. However, a sharp increase in the termination of standard and stack-up factory space led to a 46% jump in termination for ready-built facilities to 68,404 square metres. The performance of the prepared industrial land segment recorded an improvement in the third quarter 2002. Net allocation improved from a minus 11.7 hectares to a minus 4.7 hectares.

In 2Q2002, JTC's industrial facilities saw a mixed performance as the economy showed its first signs of recovery. Backed by higher gross allocation and lower termination in the quarter, net allocation of ready-built facilities returned to positive territory, at 2,554 square metres from -21, 524 square metres in 1Q2002.

However, performance of the prepared industrial land segment remained sluggish in 2Q2002, with net allocation remaining in negative territory for the second consecutive quarter, declining slightly from -11.2 ha to -11.7 in 2Q2002. Both gross allocation and termination showed marginal changes, up by 0.8 ha and 1.3 ha respectively. Termination due to EBR was 13 ha, accounting for half of the total termination in 2Q2002.

Activity in the secondary market hit an all-time low in 2Q2002 with the total number of industrial facilities transacted declining to 15 from 26 in 1Q2002. Assignment price movements were mixed. Prices of standard factories edged marginally higher, while those for facilities built by lessees continued to decline.

The first quarter saw weaker performance across all product segments of JTC's industrial facilities amid uncertainties in the economic environment. In the Ready-Built segment, flatted factories, business park space and standard factories recorded negative net allocation. Technopreneur space and stack-up factories fared slightly better, registering marginal positive net allocations of 1,402 sqm and 3,116 sqm respectively.

The prepared industrial land segment recorded weaker performance with net allocation returning to negative territory (-11.2 ha), from a positive 15.5 ha in the previous quarter. Gross allocation was halved to 13 ha. Termination was sharply higher at 24.2 ha, but this was mainly due to the return of TOL land in Jurong Island.

Activity in the secondary market remained subdued in the first quarter of 2002. The number of industrial facilities transacted declined to 13 in 1Q 2002, down from 17 transacted in the preceding quarter. The trend in assignment prices was mixed. Prices of standard factories were flat in the first quarter, while those for factories built by land lessees posted a decline.

A fourth-quarter pick-up in allocation helped demand for ready-built facilities expand by 1.4% in 2001, compared with 6.1% in 2000, amid very harsh operating environment for manufacturers. Gross allocation across all ready-built product types declined in 2001 led by the stack-up factory segment, which enjoyed record take-up in 2000. The fall in gross allocation of flatted factories was moderated by good take-up rate for business park space, which accounted for 16% of total flatted factory space allocated in 2001.

Helped by healthy take-up in the first half of the year, gross allocation for JTC's prepared industrial land segment posted a rise of 41% to 147.5 hectares in 2001. This was due in part to several large-scale allocations of Wafer Fab land to the electronics industries, and allocations in Jurong Island to the chemical industries. With termination rising a moderate 7%, net allocation rose nearly four-fold to 49.1 hectares, from 12.8 hectares in 2000.

Poor business sentiment among investors dampened activity in the secondary market for JTC facilities in 2001. The number of standard factory units and industrial land sites transacted in the year declined to 108 in 2001, down from 193 transacted in the previous year.

Weaker performance was registered across all product segments of JTC's industrial facilities during the third quarter of 2001 as investors deferred their investment decisions in the wake of heightened uncertainties in the global economic environment. In the ready-built segment, both standard factories and stack-up factories recorded negative net allocation. The flatted factory segment did not fare much better, with net allocation falling 63% to 197 square metres.

Net allocation of prepared industrial land slipped into negative territory for the first time in four quarters. Quarterly gross allocation was the lowest since the first quarter of 2000.

The secondary market was dampened by the poor economic outlook as well. The number of industrial facilities transacted halved to 17 during the quarter. The number of standard factories assigned had fallen for the sixth consecutive quarter. Assignment prices of standard factories and factories built by land lessees remained unchanged in the third quarter.

The second quarter saw mixed performance in JTC's ready-built facilities. Faced with a sharp deterioration in the manufacturing outlook, both the flatted factory and stack-up segments registered marginal net allocations. However, activity in the standard factory segment continued to be healthy, with net allocation of 8,700 square metres.

Take-up of JTC's prepared industrial land segment continued to be strong, with the highest quarterly gross allocation in more than two years of 49.2 hectares. However, termination increased to 35.6 hectares. This was due mainly to JTC's en-bloc redevelopment (EBR) buyback programme, which accounted for 62% of the termination.

The poor market outlook affected the secondary market for JTC facilities as well. Only 34 industrial facilities were transacted, compared to 39 in the previous quarter. In particular, the number of standard factories assigned had fallen for the fifth consecutive quarter. Both the assignment prices of standard factories and factories built by land lessees fell in the second quarter, by 2% and 21% respectively.

The first quarter saw a moderation in activity in the ready-built segment due to the Chinese New Year break and the uncertain business environment. However, this was confined mainly to the flatted factory segment, which registered a fall in net allocation to 12,000 square metres. Activity in the standard factory and stack-up segments continued to be healthy, with both registering higher net allocations of 10,410 square metres and 15,051 square metres respectively.

The prepared industrial land segment maintained its positive performance as net allocation increased to 9 hectares from 4Q's 8.3 hectares. Supported by strong take-up for Tuas Biomedical Park, gross allocation rose 22% quarter-on-quarter to 33 hectares. This offset the higher termination of 24 hectares.

The effect of business uncertainty and the holiday period also affected the secondary market for JTC facilities. Only 39 industrial facilities were transacted, compared to 55 in the previous quarter. The trend in assignment prices was mixed. Prices of standard factories fell quarter-on-quarter,while those for factories built by land lessees increased marginally.

The year 2000 saw a second successive year of growth for JTC's ready-built facilities. Lifted by the strong 15% expansion in the manufacturing sector, demand growth accelerated to 6% compared to 1.2% in 1999. The star performer was the flatted factory segment, which registered a strong 30% jump in gross allocation and recorded the lowest termination level since 1994. Meanwhile, response to the stack-up factories at the Woodlands Spectrum gathered momentum with 30 units allocated compared to two in 1999.

In comparison, take-up in the prepared industrial land segment fell for the second consecutive year, due mainly to the absence of big scale allocation on Jurong Island. Although termination declined, it remained high due to the continued restructuring in the electronics and wood industries. As a result, net allocation declined to 4.6 hectares from 1999's 26.5 hectares.

Transactions in the secondary market for JTC facilities remained at a relatively high level. The number of industrial facilities changing hands was 193, a significant rise compared to 141 in 1999. Assignment prices, reflecting the upturn in the overall market, were higher. On average, those for standard factories rose 14%, while those for factories built by land lessees gained a moderate 2%.

The third quarter saw a further strengthening in the flatted factory segment. Lifted primarily by stronger demand from local companies, a net allocation of 36,193 square metres was achieved, up from the second quarter's 21,917 square metres. Activity in the standard factory segment picked up as well, and net allocation improved to 8,188 square metres. Meanwhile, the stack-up factories in Woodlands saw another seven units allocated. This helped raised occupancy rate to almost 30%.

In comparison, take-up in the prepared industrial land segment eased somewhat. Coupled with high termination levels due to the ongoing restructuring in the wood industry as well as en-bloc redevelopment (EBR) buyback, net allocation turned from Q2's 9.8 hectares to a negative 6.7 hectares.

The secondary market for JTC facilities was relatively quiet. Partially dampened by the Hungry Ghost month, only 39 industrial facilities were transacted, compared to 47 in the previous quarter. Signals from assignment prices were mixed. Prices of standard factories rose 3.5% quarter-on-quarter, while those for factories built by land lessees fell 10.0%.

The second quarter saw renewed strength in the flatted factory segment. Boosted by stronger take-up from electronics and local companies, net allocation more than tripled from Q1 to 21,917 square metres. The prepared industrial land segment also rebounded strongly. Net allocation totalled 9.8 hectares, reversing the preceding quarter's negative performance. This was helped largely by two large allocations to pharmaceutical companies. Also, the stack-up factories in Woodlands again enjoyed healthy take-up rate. A further twelve units were allocated, and this in turn raised occupancy rate to 22%.

In comparison, the level of activity in the standard factory segment eased considerably. Gross allocation was more than halved from Q1 level. As a result, net allocation dropped from Q1's 14,290 square metres to 6,128 square metres.

The secondary market for JTC facilities slowed marginally. 46 industrial facilities were transacted, compared to 52 in the previous quarter. Assignment prices were broadly stable. Prices of standard factories rose by just 1.0% quarter-on-quarter, while those for factories built by land lessees dipped by 1.7%.

In line with manufacturing's robust performance in the first quarter, JTC saw firmer demand for its ready-built facilities compared with a year ago. Net allocation of standard factories rose to a record high in more than two years, while that of flatted factories continued to be in positive territory for the fourth consecutive quarter. Also, the stack-up factories in Woodlands saw another six units taken up in March alone, up from only four since its launch in July 1999.

Although the prepared industrial land segment slipped into negative territory during the quarter, it was not an indicator of poorer performance. This is because land take-ups tend to be lumpy in nature. Termination exceeded gross allocation by 9.4 hectares. However, 38% of the termination was due to EBR buy-backs and another 24% to expiry of TOLs.

The secondary market for JTC facilities experienced a slowdown in activity during the quarter. The number of successful assignments totalled 27, down 25% from 4Q 99's 36. Assignment prices fell by 3.1% quarter-on-quarter for standard factories and 6.7% for factories built by land lessees.

The first quarter also saw a couple of developments coming on-stream. 13 standard factories in Tuas and 90 stack-up factories in Woodlands were completed. Together, they added 221,203 square metres of ready-built space into the market.