JL Family Office buys 65 Club Street for $15.7m

The 999-year conservation shophouse is being sold by boutique property agency JerryTan Residential

Mon, Aug 24, 2020

Kalpana Rashiwala

https://www.businesstimes.com.sg/rea...treet-for-157m

JL Family Office, set up by ARA Asset Management cofounder John Lim, has bought 65 Club Street for S$15.7 million from boutique high-end property agency JerryTan Residential.

The 999-year leasehold corner conservation shophouse on an elevated cul-de-sac will be the new home of JL Family Office, which is headed by Mr Lim's son, Andy.

The family office is currently located at Balmoral Plaza.

The Club Street shophouse which it is is buying has three storeys and a mezzanine level. It stands on 2,083 sq ft of land and is is diagonally oppposite the Chinese Weekly Entertainment Club at 76 Club Street, a private millionaire's club with a history dating back to the 1890s.

Savills Singapore brokered the sale of 65 Club Street by private treaty. When contacted, its director of investment sales, Yap Hui Yee, said: ''Despite the current economic climate, buying interest and prices for shophouses have remained stable. This is driven by pent-up demand, strong liquidity and a low interest rate environment.

''Over the years, family offices, both local and overseas, have been looking to invest in shophouses to preserve their capital as the shophouse market remains fairly resilient and these properties traditionally hold their value even during market downturns.''

In absolute price terms, 65 Club Street may be the biggest CBD conservation shophouse transaction so far this year, according to Savills.

The S$15.7 million price reflects about S$2,907 per square foot based on the estimated gross floor area of 5,400 sq ft, it added.

The property, which is zoned for commercial use under the Urban Redevelopment Authority's Master Plan 2019, is under the Telok Ayer Conservation Area.

JTResi bought 65 Club Street in 2006 for S$2.8 million and invested a further S$1.2 million refurbishing it. The first storey features a private entertainment area with a wine bar, dining area and a showroom, while the upper floors are being used as an office and art gallery space.

The sale is expected to be completed in November this year .

JTResi, which was set up in 2001 by Jerry Tan and Jason Tan, first attempted to sell the property in late 2018.

In June last year, the property was put up for sale by tender with an indicative guide price of S$23 million but a deal did not materialise from the exercise.

The nearby 64 Club Street, also with 999-year leasehold land tenure, was transacted in August 2018 at S$21.8 million or S$3,880 psf on the estimated built-up area of 5,618 sq ft. It was sold by a company affiliated to Clifton Partners to a Singapore-incorporated company controlled by some members of the Chan family of Hongkong which owns Wincome Group.

Other transactions along Club Street in the past couple of years include No 87, which was sold early last year at S$17.2 million, and No 89 (transacted at S$5.8 million last month).

Currently on the market are a pair of adjoining properties at 47 and 49 Club Street owned by IndoChine Group boss Michael Ma and with an asking price of S$50 million. They are being marketed by Alvin Choo of ERA Realty and Simon Monteiro of List Sotheby's International Realty.

Also available for sale are 44 and 46 Club Street, owned by Tony Chen of Arcc Holdings. The pair, with a combined asking price of S$24-25 million, is being marketed by Cushman & Wakefield.