NEWS RELEASE
For Immediate Release
Performance of JTC’s Industrial Facilities for 3Q 2008
- Sustained Performance for Prepared Industrial Land, Lower Gross Allocation Level for Ready-Built Facilities
Singapore, 3 November 2008: The net allocation of Prepared Industrial Land (PIL) for 3Q 2008 stood at 34.5ha, similar to that achieved in the previous quarter. However, this is a drop of 38.5% on a year-on-year basis, compared to the 56.2ha level achieved in 3Q 2007. The gross allocation of PIL also moderated from 64.1ha in 2Q 2008 to 56.7ha in 3Q 2008, while termination dropped from 30.1ha in 2Q 2008 to 22.2ha in 3Q 2008.
2. JTC completed the divestment of a portfolio of ready-built facilities (RBF) to Mapletree Pte Ltd on 1 July 2008. In 3Q 2008, the net allocation for JTC’s remaining RBF portfolio fell into negative territory of -500 sqm. This was due to lower gross allocation of 29,800 sqm in 3Q 2008, compared to 94,900 sqm in 2Q 2008, and a 26% increase in terminations to 30,300 sqm. Nonetheless, the RBF occupancy level remained very healthy at 95.6%.
Key performance highlights of Prepared Industrial Land (PIL)
3. 53% of gross allocation in PIL in 3Q 2008 went to the manufacturing related and supporting sectors. The chemicals sector was the strongest performer accounting for 22.9ha (or 40% of PIL gross allocation). For 3Q 2008, 58% of PIL termination was due to lease terminations of TOL (Temporary Occupancy License) land. Consolidation of operations accounted for 24% of terminations.
4. Net allocation of Generic Land fell from 26.7ha in 2Q 2008 to 15.7ha in 3Q 2008. This decline was due primarily to higher termination of 15.7ha in 3Q 2008 compared to 5.4ha in 2Q 2008. Gross allocation of 31.3ha was marginally lower, compared to 32.1ha in 2Q 2008. A significant proportion of gross Generic Land allocation went to the Logistics (42%) and Services segments (31%).
5. Net allocation for Specialised Parks increased to 18.9ha for 3Q 2008, compared to 7.3ha in 2Q 2008. However, it is 44% lower than the 33.8ha registered in 3Q 2007. Most of the gross allocation this quarter came from Jurong Island, which accounted for 20.9ha or 82% of the total land take-up for this segment.
Key performance highlights of Ready-Built Facilities (RBF)
6. Following the divestment of S$1.7 billion worth of JTC’s high rise ready-built properties to Mapletree Investments Pte Ltd (Mapletree) on 1 July 2008, JTC's total Ready Built Facilities (RBF) space was reduced from 4.45 million sqm to 3.4 million sqm. From this quarter onwards, JTC’s quarterly report will analyse the performance of JTC’s remaining RBF portfolio on an aggregated basis.
7. The net allocation for RBF for 3Q 2008 was -500 sqm, the first negative figure registered since 2004 and significantly weaker than the 70,800 sqm level in 2Q 2008. Gross allocation fell from 94,900 sqm in 2Q2008 to 29,800 sqm in 3Q2008. Termination increased by 26% from the previous quarter, to 30,300 sqm this quarter. The top 3 industry sectors that contributed to terminations of RBF were Services (30%), Precision Engineering (30%), and Electronics (18%). Consolidation of operations was the primary reason for the termination for RBF. Nonetheless, occupancy rate for RBF remained high at 95.6% in 3Q 2008.
Full Industrial Facilities Performance Report
8. The full Industrial Facilities Report for 3Q 2008 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 Miss Chieng Yu Ding (Tel: 6883-3090 / Fax: 6885-5882 / Email: yuding@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, Changi Business Park and Biopolis. They cater mainly to the needs of new industries that are engaged in high valueadded and knowledge-based activities.
Demand
Refers to cumulative net take-up of land or space
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.
Supply
Refers to the stock of land or space available.
Temporary Occupation License (TOL)
It is a licence to occupy State land for a temporary purpose made between the State and the licensee.
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.