Far East Organization Sells Four Tuas Warehouse Buildings for S$322M — S$110 psf ppr, Buyer JV Led by HPC Realty Plans Green Logistics Hub
Far East Organization has inked a sale-and-purchase agreement to divest four single-storey warehouse buildings at 10, 20, 30 and 40 Tuas South Street 1 for S$322 million, in a deal that underscores continued investor appetite for large-format industrial land w
Far East Organization has inked a sale-and-purchase agreement to divest four single-storey warehouse buildings at 10, 20, 30 and 40 Tuas South Street 1 for S$322 million, in a deal that underscores continued investor appetite for large-format industrial land with redevelopment potential near the Tuas mega port.
- ▸Vendor: Far East Organization (via Transurban Properties)
- ▸Buyer: Consortium led by HPC Realty (wholly owned subsidiary of Hong Kong-listed HPC Holdings), a JV company called StarNova Capital
- ▸Price: S$322 million
- ▸Price per square foot (plot ratio): ~S$110 psf ppr, based on maximum allowable GFA of 2.93 million sqft
- ▸Site area: 1.17 million sqft
- ▸Lease: ~30 years remaining (60-year leasehold from July 1996, zoned Business 2)
- ▸Existing GFA: 608,000 sqft (four single-storey warehouses with mezzanine levels; current GFA 323,831 sqft)
- ▸Plot ratio: Existing ~0.5 vs URA Master Plan allowable 2.5 — significantly underdeveloped
- ▸HPC Realty: 47% stake. Parent HPC Holdings (HKEx-listed) is involved in civil engineering, general building construction, and major upgrading works in the city-state.
- ▸CWT International (via Singapore integrated logistics subsidiary): 25% stake. CWT was privatised by HNA Belt and Road Investments (Singapore) in 2017 and is now an indirect wholly owned subsidiary of HKEx-listed CWT International.
- ▸Lexing (Singapore-incorporated): 23% stake. Controlled by Wang Zeya, who owns Ding Zhou Investment — involved in real estate investment in Asia and Australia.
- ▸O2 Realty (Oliver Ong's fully owned company): 5% stake. Principally engaged in real estate management and management consultancy.
HPC announced the JV agreement on 27 March 2026 — the same date the SPA was signed. The transaction is subject to HPC shareholder approval at an extraordinary general meeting.
The JV intends to redevelop the site into a five-storey, full ramp-up logistics facility with approximately 1.1 million sqft of GFA — supporting both light and heavy industrial activities and warehousing. The JV is also considering selling a portion of the property (possibly 10 Tuas South Street 1, ~23% of total site area) and using proceeds to fund the redevelopment of the remainder into a green logistics and industrial facilities hub. To boost appeal to potential buyers and establish income-generating potential ahead of any eventual sale, the plan is to lease the redeveloped property out first.
HPC is expected to be the main contractor for the redevelopment. O2 Realty will lead the operation of the JV company and its subsidiaries.
This transaction is part of Far East Organization's strategy to shed non-core assets and recycle capital. In January 2026, Far East sold the nearby 51 Tuas View Link (456,810 sqft site) for S$121.1 million to a JV between PGIM's real estate business and Northstar Capital Logiprop.
Both Tuas South Street 1 and 51 Tuas View Link share a similar profile — substantially underdeveloped sites on Business 2 zoned land, with site leases not issued by JTC Corporation (hence not restricted by JTC's subletting and assignment policies), making them attractive to a wider pool of buyers.
The ~S$110 psf ppr reflects a plot ratio of slightly above 0.5 versus the URA Master Plan allowable of 2.5 — significant headroom for value creation through redevelopment.
The S$322M Tuas deal is one of the larger industrial land transactions in recent memory and signals sustained institutional and developer interest in large-format Tuas-area sites proximate to the new mega port. The buyer consortium's mix — a listed HK contractor, a logistics operator, a Chinese real estate investor, and a local management company — reflects the cross-border capital flows increasingly active in Singapore's industrial sector. For Far East Organization, the back-to-back Tuas divestments (S$322M + S$121M = S$443M in aggregate) represent a meaningful non-core asset recycling exercise, freeing capital for core residential and hospitality operations.