SINGAPORE (THE BUSINESS TIMES) – A block of seven adjoining three-storey conservation shophouses in Chinatown and a chief freehold web site close to Orchard Road have been put on the market for $110 million and $76 million respectively.
If bought at $110 million, the Chinatown asset will break the document for the largest shophouse transaction in Singapore – presently held by Porcelain Hotel at $90 million, mentioned unique advertising agent CBRE on Monday (April 25).
Shophouse gross sales in Singapore hit an all-time excessive worth of $1.9 billion in 2021, up by about $1 billion from the 12 months earlier than, on bullish investor sentiment as the economic system rebounded.
Demand is anticipated to remain sturdy given the restricted provide and the indisputable fact that commercially zoned shophouses are usually not affected by the Government’s newest property cooling measures.
The block of Chinatown shophouses for sale is positioned alongside 20 Trengganu Street and can be bought through expression of curiosity. The shophouses sit on an island plot spanning 10,444 sq ft and have a complete flooring space of about 31,364 sq ft.
There are additionally seven shopfront items spanning a complete flooring space of 1,300 sq ft positioned in entrance of the property that could also be leased individually from the Chinatown Business Association, CBRE mentioned.
The floor flooring of the asset is presently tenanted to a number of shops, together with a grocery store, whereas a restaurant is positioned on the second flooring. The third flooring is occupied by a boutique resort operator, understood to be Hotel 1888 Collection.
The pedestrian walkway alongside 20 Trengganu Street might be leased to third-party distributors, contributing to the whole rental revenue collected from the property yearly, mentioned CBRE.
Mr Clemence Lee, CBRE Singapore government director of capital markets, mentioned: “The incoming owner is well-positioned to capitalise on the rebound of the tourism industry and enjoy mid- to long-term positive rental reversion and capital appreciation.”
Meanwhile, the freehold web site at 118 Killiney Road, which is for sale through tender, spans 7,688 sq ft. It is zoned for residential with industrial use on the first storey underneath the Urban Redevelopment Authority’s Master Plan 2019.
There can be no improvement cost payable to transform the web site into both resort or serviced condominium use, sole advertising agent Edmund Tie mentioned in a separate assertion on Monday.
A six-storey constructing, accomplished in 2013, sits on the land plot. It has a complete present gross flooring space of round 30,327 sq ft, reflecting a plot ratio of three.94. The improvement has a restaurant on the first storey, 30 condominium items on higher flooring, and a basement carpark.
The web site is positioned close to Orchard Road, with Somerset MRT station positioned about 500m away. Orchard, Dhobi Ghaut and Fort Canning MRT stations are inside a 1km radius.
Ms Swee Shou Fern, head of funding advisory at Edmund Tie, mentioned the web site will make a great funding alternative when acquired and reworked right into a hospitality asset, given the easing of journey restrictions.
The tender train for 118 Killiney Road and the expression of curiosity train for 20 Trengganu Street will each shut on June 1 at 3pm.