With the increasing popularity of food deliveries and pre-packaged food, the demand for food factories is expected to remain robust. Restaurants face declining patronage as millennials prefer the convenience of ordering food from their phones.
Demand for food factories near the city centre continue to be strong, especially in mature areas like MacPherson, Pandan Loop and Bedok North maintaining 80% to 100% occupancy rates. Why food factories? They are dedicated facilities which can store, process, cook and package food for delivery to food & beverage establishments or direct to consumers. Buying a food factory near the Central Business District is preferred as transport infrastructure tends to be more accessible and there will be time and transport savings as freshness of the food can be better maintained.
CT FoodChain is a B2 food factory specialised to serve the modern F&B industry. It is well connected to the West Coast Highway and the Ayer Rajah Expressway, which gives good accessibility to the future Tuas Mega Port and the Central Business District.
The rising popularity of food delivery firms like Deliveroo, GrabFood and Food Panda is driving the steady growth of facilities designed to store, process, cook and package food in Singapore with another 3.68 million sq ft of food factory space in the pipeline, according to property consulting firm Colliers.
Of this number, over 80% is scheduled for completion in 2019-2020 especially in the North, East and West regions. Prominent projects include JTC Bedok Food City, which has a total Gross Floor Area of more than one million sq ft and is slated for completion in early 2020. An integrated Halal Food Hub in the West region that spans 600,000 sqft that was proposed by Elite Partners Capital and the Singapore Malay Chamber of Commerce and Industry in May 2019 as part of efforts to enhance Singapore’s halal industry, is also expected to be ready in two years. The project costs around $80m-100m.