SINGAPORE – – CBRE, as the exclusive marketing agent, is pleased to launch for sale via Expression of Interest two prime three-storey conservation shophouses with attic located along Tras Street.
The larger shophouse unit has a land area of approximately 1,494 sq ft and total floor area of approximately 4,257 sq ft. Located across the street, the smaller unit has a land area of approximately 1,298 sq ft and total floor area of approximately 3,852 sq ft. Both shophouses have a 99-year leasehold tenure and are zoned for commercial use in the Chinatown-Tanjong Pagar Conservation Area under the 2019 Master Plan.
The two units, which are within a short 260 m from Tanjong Pagar MRT Station, are fully leased to established food and beverage operators on the ground floor and SOHO users on the upper floors.
The guide price for the larger shophouse is S$12 million, while the smaller shophouse is S$10.8 million. These work out to approximately S$2,800 per sq ft on the total floor area of each shophouse. Interested parties are welcome to purchase the shophouses either collectively or individually.
Mr Clemence Lee, Senior Director of Capital Markets at CBRE, says, “On the back of rising prices of 999-year or freehold CBD shophouses that have been transacting between S$3,500 per sq ft and S$4,000 per sq ft on total floor area in the past year, we have started to observe investors’ interest shifting to well-located 99-year leasehold shophouses which are believed to offer better value and higher yields.”
Recent transactions of 99-year leasehold shophouses include 34,36 & 38 Tanjong Pagar Road which were sold collectively in December 2019 at S$16.35 million or approximately S$3,000 per sq ft on total floor area, and 76 Pagoda Street which changed hands in July 2019 at S$13.3 million or approximately $3,500 per sq ft on total floor area.
Mr Lee adds, “At the attractive price of S$2,800 per sq ft, coupled with the subject properties’ proximity to the Tanjong Pagar MRT station, strong tenant covenants and attractive gross yields of up to 3.5%, we are confident that these two assets will attract strong investor interest.”
Tanjong Pagar is one of Singapore’s trendiest locales, characterized by its myriad of popular F&B, retail and lifestyle offerings. It is home to several Michelin-star restaurants such as Burnt Ends, Capital, Issan Thai Food, Otto, Ushidoki Wagyu Kaiseki and Whole Earth. Along Tras Street, Six Senses Maxwell, a luxurious boutique hotel and ST Signature, a new co-living operator, have just opened doors in end 2019.
New commercial developments in the area include Guoco Tower, Frasers Tower and ASB Tower that is scheduled to be completed this year. These changes are part of URA’s urban renewal efforts to transform the vicinity into a livework-play destination.
The Expression of Interest marketing exercise will close on 12 February 2020, Wednesday, at 3 pm.
This article is contributed by CBRE.