DONE DEAL: 1-storey factory office, Bayan Lepas, Penang

Rented for: RM58,000 a month (average RM2 psf)

Concluded by: Roy Lim (REN 08368) of Khoo Associates Realty (012-431 1122)

When: Sept 28, 2016

Noteworthy:
● Leasehold
● Located in Bayan Lepas Free Industrial Zone Phase 1
● Built-up size:  50,000 sq ft of which 29,000 sq ft was rented
● Located about 4km away from Penang International Airport and Penang Second Bridge, 18km away from Georgetown, and 11km away from Penang Bridge.
● Nearby amenities including Queensbay Mall, Hospital Pantai Mutiara, Penang International Airport and hotels

The Bayan Lepas Free Indutrial Zone, also known FIZ, is envisioned to be the high-tech industrial zone in Southern Penang Island.

Being the main industrial hub of Penang, it has attracted many multinational and local companies, especially those in the semiconductor industry, to set up their production plants or offices there.

According to real estate negotiator Roy Lim from Khoo Associates Realty, the tenant is a Singapore-based company which specialises in equipment system solutions, precision components and machineries manufacturing services.

In this three-year tenancy, the tenant took up 29,000 sq ft of the 50,000 sq ft built-up area of the factory located on a two-acre site.

The tenant plans to convert the space into an office and production plant.

“The remaining space will still be occupied by the owner which specialises in machinery assembly services, but the owner will gradually move the machinery to the headquarters, also situated on Penang island,” Lim explained.

He added that the tenant is looking at take up more rental space, which may include the entire factory office.

On market demand for industrial properties in Bayan Lepas, Lim said both demand and supply have been slow recently while business owners are taking a wait-and-see approach when it comes to   business expansion in the current market.

“In this deal, the monthly rental is about RM2 psf or RM58,000, which is considered the average. The rents for industrial properties in these areas range between RM2.30 psf and RM2.50 psf,” he added.

He considers this a win-win deal for both sides as the well-maintained factory meets the needs of the tenant while the owner has secured a reputable tenant as well as stable rental income.

Available market listings showed that the asking rental for factories in the Bayan Lepas industrial area ranges from RM1.80 psf to RM2.80 psf, depending on location and built-up sizes.

Interested to rent properties in Bayan Lepas, Penang? Click here.

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