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Difference Between General Industrial Factory and Food Factory

Difference Between General Industrial Factory and Food Factory

It may sometimes seem to us that all factories may be used for all trade or business. However, there are actually differences between a general industrial factory and a food factory even if the zonings may appear to be the same when looking at the Master Plan.

Use of Premises

Factories that may be used for general industries are usually zoned as either B1 or B2 industrial while food factories used for food production are usually zoned B2 industrial in the Master plan. Apart from B1 & B2 industrial, there are also other classifications such as business parks which are usually suitable for Research & Development (R & D) or knowledge intensive activities.

B2 Zoning But Different

Although both general industrial factories and food factories may be zoned as B2 industrial, the approved uses of premises are not the same. A B2 general industrial factory would allow heavy industrial trades while a B2 food factory allows for food production activities. Such uses are not interchangeable although they may appear to be zoned B2 in the Master Plan.

Difference in Rates

Another point to note will be that food factories usually command a premium in terms of rental rates or sale prices. This may be due to the approved use of the premises and may also be due the demand for food factories in Singapore. Hence, a B2 factory with much lower rental rate or sale price as compared to a B2 food factory is quite unlikely to be a B2 approved food factory and may instead be a B2 general industrial space.

Of course, proper due diligence is advisable to be done in order to determine whether it is a B2 general industrial factory or a B2 approved food factory as there are also various factors such as remaining tenure, location and specifications which may affect the prices.