JTC sees record take-up of its ready-built space in 2007

JTC Corporation has reported a record take-up of some 246,300 square metres of its ready-built space last year, surpassing the previous record seen in 2005.

The bouyant industrial property market last year helped JTC to book a record surplus of S$1.183 billion, up 50 per cent from 2006. The numbers were also boosted by impairment loss write-backs of nearly S$159.4 million on its properties.

But JTC has hinted that the upward momentum is unlikely to continue this year.

Ow Foong Pheng, CEO of JTC Corporation, said: “We expect that it would follow how the economic projection will be. So FY 08/09, I think growth is expected to be slower and it will probably pan out in our industrial space demand as well.”

JTC saw some 360 hectares of its prepared industrial land taken up last year – the biggest in ten years.

Going forward, JTC said demand for industrial space this year is unlikely to be as strong as 2007. However, it would continue to invest in more research and development projects, and focus on producing more innovative industrial space solutions.

This includes taking on higher-risk projects that require specialised needs and bigger investments.

Mrs Ow said: “With a very vibrant and good group of private industrial developers out there, JTC can step back and allow the private market to play in the provision of more generic industrial space.

“But we will still keep an eye to ensure that there’s sufficient supply of ready-built factories to meet the needs of the industry. This will free JTC to move further upstream towards planning and developing more specialised parts that meet new needs.”

JTC is divesting 62 of its ready-built properties to Mapletree Investments, and the transaction is expected to be completed by the end of the year.

Source : Channel NewsAsia – 29 Jul 2008

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