NEWS RELEASE

For Immediate Release

1.         Singapore, 2 November 2007:           JTC continued to register positive net allocations for both its Ready-Built Facilities (RBF) and Prepared Industrial Land (PIL) in the third quarter (3Q) of this year.  The robust net allocation of 75,100 sqm for RBF was due to strong gross allocation of 121,100 sqm and low termination of 46,000 sqm. The net take-up for RBF in 3Q 2007 was the highest registered in the past two years. The strong overall net allocation pushed occupancy rate for RBF up to 91%.   The positive net allocation of PIL was due to the strong performance for the Logistics Park, Business Park and Jurong Island (under the Specialised Parks segment).  Overall demand for PIL increased to 4,785 ha in 3Q 2007.

 2.         Net allocation of RBF registered a 29% quarter-on-quarter increase, rising to 75,100 sqm.  The overall rise in the net take-up for RBF was attributed to positive growth in net allocations for Flatted Factory space, Stack-up Factory space and Business Park space. Occupancy rate for RBF rose 2% point to 91% in 3Q 2007.    

 3.           3Q saw an overall positive performance in PIL. Net allocation remained in the positive region, at 55.9 ha, but was 13% below that achieved in 2Q. Gross allocation stood at 66.2 ha, while termination increased slightly from 7.9 ha in 2Q to 10.3 ha in 3Q. The Logistics sector accounted for 37% (or 24.4 ha) of the gross allocation, up from 12% (or 9 ha.) in 2Q. On the other hand, the Electronics sector accounted for 67% (or 6.9 ha) of the 10.3 ha returned. Business expansion was cited as the reason for the terminations.

 4.         Key performance highlights of RBF

a.         Flatted Factory Space (FF Space)      Demand for FF space rose 5%, from 1.11 mil sqm in the 2Q to 1.17 mil sqm in 3Q. The strong net allocation of 54,000 sqm was a two-fold increase from last quarter’s 27,800 sqm and a five-fold jump from the 11,100 sqm in 3Q 2006. The healthy growth in net take-up for FF space was the result of the continued growth in gross allocation by 37% and a declining termination of 12%, to 28,000 sqm.  The Services industry, which accounted for 48% of the overall gross allocation of FF space in 3Q, was the largest contributor to the gross allocation of FF space.  Local companies continued to form the bulk (or 78%) of the gross allocation of FF space. The Services industry contributed to nearly one-third of the termination in FF space. Most of the terminations were due to businesses returning their current facilities for alternative ones due to expansion in business. Conversely, there was a decline in percentage of businesses returning facilities due to business consolidation reasons.

 b.         Technopreneur Space (TP Space)     Occupancy for overall TP space remained at 85% over the quarter.  Gross allocation eased to 800 sqm, while termination increased slightly to 900 sqm. The weaker gross allocation resulted in a negative net allocation (200 sqm).  

 c.         Business Park Space (BP Space)          Demand for BP space inched up by 1%, to 262,900 sqm in 3Q 2007, pushing occupancy up to 94%. While the space returned (3,500 sqm) was higher this quarter, it was more than made up for by the higher gross allocation of 5,300 sqm. The Signature accounted for 67% (3,550 sqm) of the total gross allocation of BP Space in 3Q, with only 1,800 sqm of space terminated. The Strategy accounted for 38% (or 1,335 sqm) of terminated BP Space.

 d.         Standard Factory (SF Space)            Demand reached 2.37 mil sqm in 3Q, pushing occupancy rate for SF space to 97%.  Gross allocation for the quarter was 13,000 sqm, while termination was 3,200 sqm.  69% or 9,000 sqm of the new space allocated were due to business expansion and the remaining due to new set-ups.

 e.         Stack-up Factory Space (SS Space) Net allocation of SS space rose 60%, from 6,000 sqm in 2Q to 9,700 sqm in 3Q. The bulk of the increase came from General Manufacturing industries (which include Wholesale & Retail and Information & Communication sectors).     

5.         Highlights of the positive performance for Prepared Industrial Land (PIL)

a.         Generic Land             Net allocation for Generic Land remained at 22.3 ha. Gross allocation eased 13% to 24.6 ha, while termination declined slightly to 2.2 ha.  Local establishments formed the bulk of gross allocation of generic land at 19.1 ha (or 78%). Foreign firms take-up of generic land increased by 11%-point e to 5.5 ha in 3Q.

 b.         Specialised Parks        Net allocation for Specialised Parks, which eased to 33.6 ha in 3Q, accounted for 60% of the total net take-up for PIL. This is a 3.4-fold increase over the 9.9 ha registered in 3Q last year.  Specialised Parks achieved a 41.6 ha gross allocation and 8 ha of termination. The Logistics Park, which achieved 17.9 ha (or 43% of total land take-up for Specialised Parks) contributed to the bulk of gross allocation for the quarter.     

Full Industrial Facilities Performance Report

 6.         The full Industrial Facilities Report for 3Q 2007 can be downloaded from the JTC website at www.jtc.gov.sg. It is also available from JTC's Corporate Research and Knowledge Management Department through Ms Phyllis Fan (Tel: 6883-3085 / Fax: 6885-5678 / Email: fanytp@jtc.gov.sg).  

Annex A (Glossary)

Business Park

A business park is an area specifically set aside for non-pollutive industries and businesses that engage in high-technology, research and development, high value-added and knowledge intensive activities.

Business Park Space

JTC's ready-built facilities at the International Business Park, Jurong Town Hall, Phase Z.Ro, Changi Business Park and Biopolis. They cater mainly to the needs of new industries that are engaged in high value-added and knowledge-based activities.

Demand

Refers to cumulative net take-up of land or space

Flatted Factory

A type of ready-built factory that is generally medium to high-rise and housed multiple tenants/lessees sharing common facilities like car parks, loading/unloading areas and cargo lifts.

Gross Allocation

Land or space that is leased or rented to companies during a reference period.

Net Allocation

Gross allocation less termination of land or space.  

Occupancy Rate (Of Space)

Total space occupied as a proportion of total stock of space as end of a reference period.

Prepared Industrial Land

A type of JTC product referring to land that is made ready for lessees to develop their own industrial facilities. The land is normally provided with road access/frontage, main storm drain, water and sewer mains at its perimeter.

Ready-Built Facilities

Types of JTC products referring to factories that are built in anticipation of demand to allow lessees/tenants quick start-up and operation. The current JTC portfolio includes Standard, Flatted, Ramp-Up, Stack-Up Factories, Warehouses, Business Park Space and Technopreneur Space.

Stack-up Factory

A type of ready-built factory that consists of 2-storey factory units stacked on top of each other. It offers the same ground floor conveniences of a low-rise landed factory.

Standard Factory

A type of ready-built factory that is typically low-rise and meant for a single tenant. The building can be designed as a detached, semi-detached or terrace unit. 

Supply

Refers to the stock of land or space available.

Technopreneur Space

A facility specifically designed for technology-based activities. JTC currently has two such facilities: Technopreneur Centre located at 20 Ayer Rajah Crescent (storey 7,8 and 9) and 1003 Bukit Merah Central (storey 4,5 and 6).

Termination

Land or space returned to JTC during a reference period.

About JTC Corporation

 JTC Corporation (JTC) is the lead agency in Singapore to plan, promote and develop a dynamic industrial landscape, in support of the nation's economic advancement.  Currently, the Corporation has under its management many developments including four wafer fab parks, an advanced display park, two business parks, a chemicals hub at Jurong Island, biomedical parks in Tuas as well as logistics hubs for aerospace, chemical and general warehousing industries. 

 JTC also plays a catalytic role in introducing leading-edge real estate solutions -- such as specialised research facilities and underground caverns -- to anchor important activities critical to the growth of the economy.  It is the master developer for one-north at Buona Vista -- a 200-hectare development for research and entrepreneurial activities.  With a focus on knowledge-intensive activities in the biomedical, infocomms and media industries, one-north is a niche environment for innovation and creativity. 

 In line with its vision of making Singapore the choice investment location, JTC is committed to providing a pro-business environment for its customers and optimising land resources to meet the needs of industries and enterprises.  JTC's home page address is http://www.jtc.gov.sg.