Six adjoining Tanjong Pagar shophouses put on market for S$57.8m

Wed, Sep 25, 2019

FIONA LAM


A ROW of six adjoining shophouses in Tanjong Pagar have been launched for sale via an expression of interest (EOI) exercise, joint marketing agents Colliers International and Jones Lang Lasalle Singapore (JLL) said on Tuesday.

Located at 48 to 56 Peck Seah Street, the three pairs of two-storey conservation shophouses with attic sit on three separate land lots with a combined land area of 8,213 square feet (sq ft).

They have a total indicative value of S$57.82 million, which works out to about S$2,900 per square foot (psf) based on the total existing gross floor area of 19,938 sq ft. They can be sold individually or collectively. The EOI exercise closes at 3pm on Oct 23.

Situated in the central business district (CBD), the property is set to benefit from the Singapore government's plans to rejuvenate the city centre under the Draft Master Plan 2019, said Colliers. Initiatives such as the CBD Incentive Scheme to convert ageing office buildings to hotels and homes will inject vibrancy and attract a diverse community to the area, the real estate services firm added.

"Conservation shophouses in prime city locations - typically regarded as trophy assets - are highly sought after," said Steven Tan, director of capital markets at Colliers.

The six shophouses are fully let to insurance cooperative NTUC Income, kitchen and bathware brand Kohler, and Middle Eastern restaurant Fat Prince, with the latter two leasing the majority of the space. The property is being offered for sale with the existing tenancies.

"This is a rare opportunity to acquire a row of conservation shop- houses with strong tenant covenant and an attractive initial yield of above 3 per cent," said Clemence Lee, senior director of capital markets at JLL.

Colliers' Mr Tan added: "Amid the upward trend in rents in Tanjong Pagar, the shophouses will likely have strong reversionary rental recovery across the majority of leases, particularly in a robust leasing market with limited supply."

The site is zoned for commercial use under the Draft Master Plan 2019, thus the additional buyer's stamp duty and seller's stamp duty are not applicable. It has a leasehold tenure of 99 years, starting from May 1994.

The shophouses are located opposite Tanjong Pagar MRT station, and have a 33-metre street frontage.