Following past deal delays, three shophouses in Jalan Besar are now again for sale fo
Following past deal delays, three shophouses in Jalan Besar are now again for sale for S$44 million
The three shophouses are situated on a single 6,378 square foot freehold land lot with a total floor space of almost 13,000 square feet, near the intersection of Jalan Besar and Sam Leong Road.
October 14, 2024
CONDOsingapore.com
A public tender drive has been held to restart the sale of three adjacent conservation shophouses in Jalan Besar, with a recommended price of S$44 million. This follows the collapse of a September 2023 contract for the three shophouses.
A prior story said that Lawrence Leow, the head of the Crescendas Group, and his family had agreed to pay S$38.5 million for the acquisition. Mary Sai, executive director of capital markets at Knight Frank, said that despite the failure of that transaction, there is still a strong demand for shophouses because of their limited supply and opportunity for investment.
According to reports, a four-story shophouse on North Bridge Road sold for almost S$42 million, or S$5,833 per square foot (psf), only last month. Another three adjacent shophouses facing North Bridge Road, close to Bugis Cube, were reportedly the subject of an impending purchase. According to reports, the price ranged from S$75 million to S$85 million.
Because they have strong frontages to major highways, name and advertising rights, and the option to lease the spaces to several tenants or partially own them, these shophouses are popular with both owner-occupants and investors, according to Sai.
Knight Frank, a marketing agency, would not comment on the reasons behind the prior deal's failure.
We are aware that the prior agreement was terminated amicably on September 27, 2023, after the exercise of the option to buy the properties. Since then, the caveat has been lifted.
In order to comply with the Building and Construction Authority's regulations, correction work is under underway. The shophouses will be sold with empty possession when all tenants have left the property.
The three shophouses are situated on a single 6,378 square foot freehold land lot with a total floor space of almost 13,000 square feet, near the intersection of Jalan Besar and Sam Leong Road.
It has a 3.0 plot ratio and is classified as commercial under the Urban Redevelopment Authority's 2019 Master Plan. It is also located inside the Jalan Besar Secondary Settlement conservation area.
If officials give them consent, the property's back may be expanded up to six stories, increasing the gross floor space overall.
The bottom floor, which was previously leased by an eating house, has the potential to be leased to food and beverage establishments, according to a news release sent by Knight Frank on Monday, October 14. It also said that, with permission, the top floors might be used as service flats or co-working spaces.
According to the consultant, "aware investors would recognise this exceptional acquisition opportunity, which brings opportunities to increase the floor area to maximise the property's best use." "Its appeal is increased by the lack of three or more adjacent conserved shophouses for sale in District 8 (Little India, Jalan Besar), falling interest rates, and an increase in shophouse transactions."
On November 15 at 3 p.m., the public tender process for the three shophouses ends.
