Soon Hock - Pure-play Singapore industrial property developer

A pure-play Singapore industrial property developer (SGX: SHE) - Not Rated

Soon Hock’s property development history dated back to the 1980s when the Group decided to develop its own warehousing facilities for its own operational needs.  The Group delivered the first developments at 29 and 31 Penjuru Lane, in 1991 and 1993, respectively.  

Soon Hock’s property development history dated back to the 1980s when the Group decided to develop its own warehousing facilities for its own operational needs.  The Group delivered the first developments at 29 and 31 Penjuru Lane, in 1991 and 1993, respectively.  

Helmed by Tan Yeow Khoon, a veteran with over 50 years of experience in in logistics and transportation management services. Soon Hock has successfully developed industrial properties valued over S$1.0 billion. 

Soon Hock was listed on the Singapore Stock Exchange on 16 October 2025.  Its single largest shareholder remains the Founder’s family, who owns 70.2% shareholding.

The group operates entirely in Singapore, with activities governed by Jurong Town Corporation (JTC) policies and industrial zoning regulations, which creates high barriers to entry but also limits speculative land banking. 

Strategic locations maximize the projects’ return on investment

Soon Hock’s properties are located in established industrial estates such as Kaki Bukit and Jalan Papan, with close access to major expressways and transport nodes. This positioning is intentional. It targets end-users who value connectivity, efficiency, and proximity to labour and supply chains.This enhances the assets’ leasing appeal and potential capital appreciation.   

Management with strong proven track record

Beginning his entrepreneurial career back in the 1960s, founder and Executive Chairman, Mr. Tan Yeow Khoon, is among the pioneers shaping Singapore’s development as a regional logistics hub. 

Mr Tan Yeow Khoon brings decades of experience as an end-user of industrial properties, including his tenure as Executive Chairman of Cogent Holdings Limited, a Singapore-based logistics service provider formerly listed on the SGX Mainboard. Cogent was sold to COSCO Shipping International (Singapore) Co, Ltd in a S$490 million cash deal in 2018 and subsequently delisted from the Singapore Exchange. 

With a strong understanding of end-user requirements, the management drives a user-centric development strategy with a forward-thinking design philosophy. This has translated into features that enhance functionality and usability, such as wide driveways and ramps, as well as column-free or minimal-column layouts incorporated across most of the group’s industrial projects. 

Soon Hock’s management, led by Executive Chairman Tan Yeow Khoon, has launched more than 1,200 units of strata-titled industrial properties across various projects in Singapore. Between 2011 and 2019, the group completed eight industrial developments and all were fully sold.

Business segments

Building on its strengths in capital investment, construction expertise, and proven management controls, the group aims to establish itself as a leading industrial property developer in Singapore.

Soon Hock has two business segments – property development and property investment. Focused on multi-user strata industrial developments, Soon Hock’s mature development platform has a sizeable pipeline already under construction, while providing capital to recycle into new land acquisitions. 

Property development

As at 31 December 2024, development properties under construction amounted to S$281.6m, reflecting a significant ramp-up in activity compared to prior years. The development projects anchors near-term development profits.

The total gross development value of the four projects in the pipeline is estimated at S$1.0bn.  Stellar@Tampines and Skye@Tuas are under development and scheduled for completion by 1Q26 and 1Q27, respectively.  20 Shaw Road and Senang Crescent are projects under planning and have been substantially funded.

Stellar@Tampines

Located at Tampines North Drive 4, Stellar@Tampines is a 30-year lease, 9-storey multi-user ramp-up B2 industrial factory (total 307 units) and industrial canteen (4 units) with a basement carpark. Gross development value of Stellar@Tampines is estimated at S$326.5 million.

Stellar@Tampines is positioned as a modern multi-user industrial development in a prime industrial hub, designed to capture sustained demand from end-users and investors seeking functional space with strong connectivity.

Its location in Tampines places it close to major expressways and established industrial catchments, which supports take-up, pricing, and divestment. 

On 11 December 2025, the project has obtained a partial Temporary Occupation Permit (TOP) for phase 1 and a full TOP is expected by March 2026.  Phase 1 comprises entire development excluding 9th storey and covered linkway extension at 1st storey only. 

With the Temporary Occupation Permit, Soon Hock will start to recognise the revenue from the sale of strata titles in 2025. Gross margin for the project is estimated at 25% or around S$81.6 million.  

Skye@ Tuas 

Located in Tuas, Skye@Tuas is a B2 industrial property (over 300 units), with 3 levels of parking.  Gross development value of Skye@Tuas is estimated at S$354.0 million.

Skye@Tuas is positioned to capture demand from industrial users that prioritise scale, efficiency, and proximity to Singapore’s western manufacturing and logistics corridor.

The project benefits from deep industrial clustering, port connectivity, and established infrastructure, supporting take-up from owner-occupiers and investors despite its non-city-fringe location. 

20 Shaw Road

20 Shaw Road is a freehold industrial redevelopment project located in the Tai Seng industrial area, a city-fringe precinct with strong connectivity and a long-established industrial and commercial catchment. 

In April 2025, Soon Hock acquired 20 Shaw Road through an en-bloc transaction for S$118.8 million.  The estimated gross development value is estimated at S$235.4 million. 

The project involves the redevelopment of an existing industrial building into a modern multi-user industrial property, designed to meet current specifications and occupier requirements. Its city-fringe location supports stronger demand from owner-occupiers seeking proximity to the CBD, workforce accessibility, and efficient logistics links. 

Target to start in Mid-2026, the project is scheduled to complete by end-2028.  The project will have a workers’ dormitory with 900 beds. 

Senang Crescent

The Senang Crescent project is an industrial redevelopment and asset enhancement initiative located within an established industrial estate in the eastern region of Singapore. 

The site benefits from proximity to mature industrial catchments and transport infrastructure, supporting continued relevance for industrial users. The completion is scheduled in 2027.

Property investment 

Soon Hock owns a portfolio of two income-generating industrial properties, providing stable recurring income.  They are 2F Jalan Papan and Premier @ Kaki Bukit. 

2F Jalan Papan

The 20-year leasehold Jalan Papan property includes a purpose-built factory block and an accompanying workers’ dormitory, obtained its TOP in January 2025. In October 205, the committed occupancy was 37%. 

Jalan Papan also features a workers’ dormitory on master lease.  The workers’ dormitory is currently approved to accommodate up to 300 beds which is fully leased to Range Construction Pte. Ltd.   In 1QFY2025, Soon Hock recorded revenue in S$0.27 million from the master lease. 

The asset generates stable cash flows for the group, supported by on-site amenities, with the first level of Block 1 of the factory block occupied by a canteen operator and a minimart that provide daily conveniences to tenants.

8 Kaki Bukit Avenue 4

This refers to two strata-titled 60 years (commencing 15 December 2010) leasehold factory units at Premier @ Kaki Bukit. 

The Kaki Bukit properties are located within a well-established industrial estate and are held primarily for investment purposes. Their strategic location supports stable occupancy and recurring rental income, providing income visibility and balance to Soon Hock’s otherwise development-driven earnings profile. 

As part of the capital recycling implementation, the two units have been divested in November 2025. The selling price was S$1.5 million each unit and Soon Hock will report total net gain on disposal of S$0.72 million.

Competitor

Soon Hock Group ranked among the top 5 developers in Singapore’s strata industrial sale market with a market share of approximately 6%.  

Industry outlook

Singapore’s economic outlook remains supportive of a healthy outlook for the industrial property market. In 2024, Singapore’s economy expanded by 4.4% year-on-year.  For 2025, the Ministry of Trade and Industry (MTI) forecasts the Singapore economy to grow 4.0% year-on-year. 

While global economic conditions turned out to be more resilient than expected, Singapore’s economic growth benefitted from stronger demand from key trading partners, stronger demand for semiconductor exports tied to the artificial-intelligence boom and the de-escalation in U.S.-China trade tensions.

The long-term outlook for Singapore’s factory market remains positive, underpinned by the country’s strong economic fundamentals and the continued expansion of the manufacturing sector. 

Manufacturing investment commitments rose 27% y-o-y in 2024 to S$11.1 billion, driven mainly by strong inflows into the electronics and biomedical clusters. As these commitments are progressively realised over the next five years, more than 10,000 jobs in manufacturing, R&D and innovation are expected to be created, supporting sustained demand for industrial space across both production and R&D uses.

As at Q4 2024, overall industrial stock in Singapore totalled 574.1 million square feet (sf) of available floor area. Single-user factory space and multiple-user factory contributed 49.7% and 23.5% to the total industrial stock, respectively. 

According to independent market study, the supply of factory space in the next two years will be skewed towards single-user factory.  Jurong Town Corporation (JTC) projected 18.1 million square feet of single-user factory but only 8.9 million square feet of multiple-user factory to be completed between 2025 and 2028. 

Rent estimated to grow 2.4% per annum between 2025 and 2027

In 2024, rents for single-user and multi-user factories recorded stable year-on-year growth of 3.2% and 3.8%, respectively. Against a positive long-term outlook and stable demand for the Singapore factory market, a sustained uptrend in rents is expected. Rental growth is expected to continue over 2025F–2027F, with multi-user factory rents projected to rise by an estimated 2.4% per annum.

Rents for multi-user B1 and B2 factories followed an upward trend over the period, with B2 factory rents recording higher cumulative growth of 31.5% from 2020 to 2024, compared with a 25.1% increase for B1 factories. This highlights steady demand for factory space, particularly for B2-zoned properties, which typically accommodate a broader range of industrial activities and uses.

Financial highlights

Soon Hock’s earnings are driven by development project completions and sales, resulting in uneven revenue and profit recognition across financial periods.  

1Q2025

In 1Q2025, the group recorded revenue of S$0.7 million, derived entirely from rental income from its investment properties. This represented an 87.6% increase from S$0.3 million in 1Q2024, mainly driven by the commencement of the master lease at the newly completed workers’ dormitory, canteen, and minimart at Jalan Papan in February 2025. 

Jalan Papan asset was still under construction in 1Q2024. In addition, rental income continued to be contributed by existing leases at the Kaki Bukit units and the leasehold industrial property at 13 Tuas South Street 6, which was fully divested in July 2025.

FY2024

Revenue declined to S$7.9 million in FY2024 from S$264.7 million in FY2023, reflecting the absence of development property sales as no new projects obtained Temporary Occupation Permit during the year. 

FY2024 revenue was mainly driven by the sale of a heavy vehicle park at Polaris@Woodlands, which contributed S$6.5 million. Rental income from investment properties remained relatively stable at approximately S$1.4 million in FY2024, compared with S$1.3 million in FY2023, derived from leases at 13 Tuas South Street 6 and four leasehold strata-titled industrial units at Premier@Kaki Bukit.

Profit after tax declined to S$3.3 million in FY2024 from S$29.4 million in FY2023, reflecting a year-on-year decrease of S$26.1 million.

Key Risks

Demand for industrial space depends on economic activity

Macroeconomic uncertainty could weigh on industrial occupier sentiment and capital expenditure, potentially slowing demand for industrial space and affecting pricing, sell-through rates, and leasing activity. A weaker economic environment may also delay investment decisions by owner-occupiers, lengthen sales cycles for development projects, and place pressure on valuations. In addition, tighter financial conditions could raise financing costs and constrain liquidity, amplifying the impact on development margins and cash flow.

Exposure to industrial property policy changes  

Operating within Singapore’s tightly regulated industrial property framework. Changes in Jurong Town Corporation (JTC) policies, zoning rules, or worker accommodation regulations could affect project feasibility and asset values.

Earnings volatility due to project-based revenue recognition

Earnings are driven by development project completions and sales, resulting in uneven revenue and profit recognition across financial periods. This is structural to the business model and can lead to short-term volatility in reported results.

High gearing during construction phases

Soon Hock’s development projects are capital-intensive and are typically funded through a combination of internal cash and bank borrowings.  The project’s gearing is around 70% to 80%.  As a result, gearing tends to rise during construction phases before sales proceeds are realised upon TOP and unit sell-through. Elevated leverage during these periods increases exposure to interest rate movements and refinancing risk may constrain financial flexibility if project timelines are delayed or market conditions weaken.

Dividend constraints from subsidiary-level borrowing covenants 

Although the listed entity intends to distribute dividends of at least 25% of net profit after tax, certain subsidiaries may be subject to banking covenants that restrict dividend upstreaming until specified financial thresholds are met. As a result, dividend payouts may be uneven and closely linked to project completion and cash realisation rather than recurring earnings.

Trading at FY2024 P/E 60.6x and P/B 2.34x

Currently trading at S$0.63, Soon Hock is trading at market cap of S$195 million and FY2024 PE 60.6x. The high price-to-earnings ratio  is due to the timing of the revenue recognition.  The company does not have completed projects in 2024. 

With the profit recognition on the newly completed projects in the next three years, the earnings visibility is supported by the revenue recognition from sales of units in completed projects.   

For FY2025E and FY2026E, Soon Hock will start recognising revenue  from Stellar@Tampines, which has a gross development value of S$326.5 million. 

From FY2027E, Skye@Tuas will be completed with a gross development value of S$354 million.  

The company’s stated dividend policy is to maintain dividend payout ratio of at least 25% on the net profit after tax.   

Based on the reported NAV of 26.86 cents as of 31 March 2025, Soon Hock is trading at Price-to-book ratio 2.34x. 

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