WHY FOOD FACTORY?
1. Higher retail rent has pushed F&B operator to look at other options to enhance productivity, lower the cost and improve the bottomline.
2. Government push for productivity in F&B, has caused recent technology adoption (e.g. self-order kioks, tablets) to reduce the manpower crunch in the F&B sector.
Credit & Source: Tricia Song and Nathan Nygugen from Colliers.
3. Changes in trends of consumer. With 3rd party food delivery servicese (e.g. Foodpanda, Deliveroo. Grab), end consumers are getting used to ordering at the comfort of their homes and still enjoy the food that they craves for. Even lunch time office crowds are beating the queue by NOT QUEUING AT ALL! They simply use the various delivery apps available to bring food at the comfort of their office.
4. With the popularisation of food delivery app, more F&B businesses may likely need lesser Retail Space (and it is a huge saving to the bottomline). The retail rents for F&B in
shopping malls (high human traffics) ranges from $10psf to $30psf ++. Wheraas for food factory (It offers attrative rental rates of $1.5psf to $5psf+ approximate), where they can
make use of delivery app services to help cater to more customer base at a wider location coverage.
5. Limited units available for the bulgeoning F&B sector to rent and buy), Less than 2000 units. Furthermore, JTC factory existing leases at Pandan Loop area are running at below 20years.
New JTC lands released are likely to be in 20years or 30 years leasehold. Very rare and limited stock to find freehold or even 60years leasehold food factory.
Credit & Source: Tricia Song and Nathan Nygugen from Colliers.
Contact me for a list of Food Factory Available For Sale!
FOOD FACTORY AVAILABLE?
If you are looking at brand new, under construction food factory or resale units, there are current a few options available (limited units available, most of unit has been sold).
1. Haper Point - Freehold
2. Pandan Food Concept - Freehold & CT Food Chain (64 Leasehold)
Both projects are located at Pandan, other than the physical specificication and the tenure difference, they share similar aspects to the convenient of the location. There is also the price differentiation; freehold commands a premium compared to the leasehold counterpart. However both asset comes with their own unique value proposition. It depends on the business owner/investors objectives to own/invest in either types of property.
3. Mactaggart Foodlink - Freehold
Each comes with their pro and cons. Please kindlly contact me for more information and I can share with you both the risks and opportunities.
HOW TO SEIZE THE OPPORTUNITY?
Please contact us for non-obligatory discussion. It is important to know the pro can cons of each product. Depending on your objectives and requirements, we will be able to recommend the right product, the entry and exit strategy.
