FOR A PHARMACEUTICAL MANUFACTURING PLANT
Client
Jurong Town Corporation (JTC)
Products & Services
•Financial Modelling & Pricing
•Cost Benefit Analysis
•Life-Cycle Cost Analysis
“Financial risks & pricing for such a large development need to be carefully handled for the investment to be commercially viable in the long term ”
Description of Project
Client
The client is the lead agency in Singapore to spearhead the planning, promotion and development of a dynamic industrial landscape. Since its inception, the client has played a vital role in the nation’s economic development journey by developing land & space to support the transformation of industries & create quality jobs.
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Background
The client continues to break new ground with pioneering projects that not only support the changing needs of today’s industries but also anticipate the future needs of new industries. In view of the robust growth of pharmaceutical industry, the client aspired to develop a state-of-the-art commercial–scale manufacturing facilities that could cater for large molecules (biologics) production.
Challenges & Expectations
Biologics manufacturing demands for highly specialized facilities & plant design. Hence, without a secured tenant, the challenge of this is to develop a generic building design that could cater for most biologics types with minimal design alterations in the future.
Our Role on the Project
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Scope of Services
Working with a team of multi-disciplinary consultancy team comprise of architect, civil & E&E engineers and quantity surveyor, our main scope was to conduct a detailed feasibility study on both the technical & financial viability of developing the plant and make recommendations to the client.
Solutions / Outcomes Delivered
Based on the requirement of client, the engineers & architect have recommended 3 separate design options for the 20 acre site.
With this, we start with the estimation of capital expenditure to construct the plant. We also conducted life-cycle cost analysis and worked out the operation expenditure to keep the plant running during untenanted period.
We have developed a 30 years financial model to assess the financial performance of the development and operation over a 30 years period.
With this as basis, we have recommended a range of leasing rates for the investment to be viable and generating acceptable rate of returns over the assessment period.
