Food Factory in Singapore

Ecofood @ Mandai is not just a commercial development; it’s an architectural masterpiece. The design seamlessly integrates modern aesthetics with functional efficiency, creating a space that is both visually appealing and highly practical. The façade boasts a contemporary look, characterized by clean lines and expansive glass panels that allow natural light to flood the interiors, reducing the need for artificial lighting and promoting energy efficiency.

Each of the 69 units, including a dedicated canteen, is meticulously designed with a floor-to-floor height of 5.6 meters, providing ample vertical space for various food production and processing needs. The thoughtful layout ensures smooth workflow, facilitating operations such as cooking, packaging, and storage with unparalleled ease. Moreover, the inclusion of separate lifts for raw and cooked food products underscores the commitment to maintaining the highest standards of hygiene and preventing cross-contamination.

Beyond functionality, the development incorporates pockets of greenery on multiple levels, offering communal areas where businesses can host events, conduct meetings, or simply unwind. These green spaces not only enhance the aesthetic appeal but also contribute to the well-being of occupants, fostering a sense of community and collaboration among tenants.

In every structural decision, there is a deeper philosophy at play—Ecofood @ Mandai is designed not just as a food factory, but as an ecosystem. The building becomes a tool for businesses to thrive, creating a balance between industrial power and human-centric design. The smart integration of form and function inspires confidence, creativity, and growth, setting a new benchmark for future-ready commercial spaces in Singapore’s evolving landscape.

Why Food Factory Could Be a Good Investment

1. Growing Demand: Singapore’s food manufacturing sector is expanding, fueled by a rising population, higher disposable incomes, and the popularity of e-commerce and food delivery platforms like GrabFood, Deliveroo, and Foodpanda. This has increased the need for production facilities, including food factories, to meet both local and regional demand.
2. Government Support: The Singapore government actively supports the food industry through initiatives like the Food Services Industry Transformation Map (ITM) and investments in food innovation (over $220 million in the agrifood sector). Grants, incentives, and a business-friendly environment make it easier for food-related businesses to thrive, which indirectly boosts the value of food factory investments.  Singapore Government also intent to increase Singapore produced food from 10% (in 2024) to 30% by 2030. Thats 3 times the amount of food production that requires food factory, meaning high in demand and low in supply (In 2023, Singapore had 2,171 licensed food processing/manufacturing establishments, thats more rare than GCB There are approximately 2,700-2,800 Good Class Bungalows (GCBs) in Singapore) . This will result in increase in price of food factory.
3. Strategic Location: Singapore’s world-class logistics network and proximity to Southeast Asian markets make it an ideal base for food manufacturers looking to export. This enhances the appeal of owning a food factory, especially in areas like Mandai or Pandan Loop, which are well-connected.
4. Stable Returns: Food factories, particularly in designated industrial zones, can offer rental yields of 5-7%, according to some market insights. Freehold properties, though rarer, can also appreciate over time due to limited supply, especially in high-demand areas. Cloud Kitchen starting from $3000 for 100 sqft = $30psf, $5000 for 250sqft = $20psf. Just assuming $10psf X 12 months / $1500psf =  8% yield for a freehold food factory
5. Emerging Trends: Technological innovations to improve the efficiency, yield and profitability of agri-food production. SFA will work with farmers to use such technology to transform agriculture practices and raise productivity, to achieve our 30-by-30 goal. This include muilt-stories hydroponics  that take advantage of the high ceiling of high spec food factory.
6. Less Restrictions: Unlike residential properties, commercial properties like food factories face no Additional Buyer’s Stamp Duty (ABSD) or foreign ownership restrictions, making them accessible to a broader pool of investors.

• Freehold vs. Leasehold: Freehold food factories (e.g., CT Foodnex) are scarce and could offer long-term value appreciation, while leasehold options provide lower entry costs but limited tenure.
• Sustainability Focus: Facilities that support eco-friendly production or cater to the growing plant-based market may attract premium tenants and government backing.
• Tech Integration: Factories equipped for food-tech innovations (e.g., automation, fermentation) could tap into Singapore’s push to become a food innovation hub.