Financing an industrial unit at Space Nova has its own set of levers. This page outlines the key considerations — loan-to-value limits, tenure, and how freehold tenure supports financing — for buyers of this freehold B1 development at 21 New Industrial Road. Figures are indicative; confirm with your bank and MAS guidelines.
For industrial and commercial property there is no fixed, MAS-prescribed LTV ceiling — instead, each bank sets its own limit based on the borrower's profile, the property and how it will be used. Many approvals sit in the 70%–80% range, though strong owner-occupier cases can reach higher. The figure varies meaningfully with the factors below:
| Factor | Effect on LTV |
|---|---|
| Owner-occupied by the purchasing business | Up to ~90% (completed units) |
| Investment / rented out | Up to ~80% |
| Any unit bought under construction (BUC) | Practical cap ~80% at purchase |
| Existing property loans outstanding | Reduce the TDSR headroom and the LTV a bank will offer |
| Borrower strength & property valuation | Bank-assessed case by case |
Indicative ranges only — there is no fixed statutory LTV for industrial property; each bank decides. Actual LTV depends on use (owner-occupier vs investment), your existing property loans, borrower strength and the bank's valuation. Confirm with your bank before commitment. On a building under construction the first 20% falls due during the 8-week S&P period before the bank disburses anything, so 80% is the practical maximum at purchase regardless of use; the 90% figure applies to completed units.
| Typical maximum tenure | Commonly up to 25–30 years (lender and age dependent) |
|---|---|
| Debt-servicing assessment | TDSR (55% cap) applies to individual borrowers — including sole proprietors and individuals setting up a company solely to buy the property. It does not apply to companies, which are assessed on company financials/cash flow instead. |
| Stress-test interest floor | Banks apply a stress-test rate above the actual rate when assessing affordability |
| CPF usage | CPF generally cannot be used for industrial property — financing is via cash and bank loan |
Indicative guidance. Industrial financing terms vary by bank — verify current terms with your lender and against MAS rules.
For a building under construction the bank does not release the loan in one sum. After the 20% down payment at option and exercise, each certified construction stage under the progressive payment scheme is disbursed from the loan, so the outstanding balance and monthly instalment grow through the build until TOP and legal completion. Interest is charged only on the amount drawn, which keeps early holding costs low. The industrial purchase calculator models this stage by stage for any price, loan-to-value, rate and tenure.
One often-overlooked benefit of Space Nova's freehold tenure is its effect on financing. Lenders generally view a freehold or long-tenure industrial asset more favourably than one with a rapidly depleting lease, which can support both the loan quantum at purchase and refinancing options later. A 30-year leasehold industrial unit, by contrast, can face tightening financing as the lease shortens. Freehold removes that constraint.
Financing is one piece of the picture. Combine it with the stamp duty and GST treatment and the progressive payment scheme to understand your total cost of acquisition. When you are ready, register your interest or contact the team to discuss financing for your purchase.
Freehold industrial like Space Nova rarely comes to market. Register now to receive the brochure, indicative price guide and balance units ahead of public release.