SINGAPORE, 21 August 2019 – Colliers International (NASDAQ and TSX: CIGI), a global leader in commercial real estate services, is inviting offers for the purchase of 33 strata retail units (the “Property”) on Basement 1 at Parklane Shopping Mall in Selegie Road via an Expression of Interest exercise.
The Property has an indicative value of SGD55.7 million, which works out to SGD2,200 per square foot (psf) based on its total strata floor area of 2,352 square metres (25,316.7 square feet). The 33 strata units – with floor area ranging from 23 sq m to 186 sq m (248 sq ft to 2,002 sq ft) - have a 99-year leasehold tenure with effect from 1 December 1974.
Parklane Shopping Mall, in the Bras Basah/Bugis arts and cultural precinct within the city, is well-positioned to benefit from the burgeoning student population from nearby education institutions – including Singapore Management University (SMU), LASALLE School of the Arts, and School of the Arts (SOTA) - as well as the growing high-end private residential enclave in the immediate surroundings.
Steven Tan (陈添裕), Director of Capital Markets & Investment Services at Colliers International, said, “This is a rare and exciting opportunity for investors to tap the growth potential of a vibrant district where cultural heritage meets urban regeneration. The area is teeming with activity being near the Little India tourist attraction, numerous hotels and schools, as well as new residential projects. In addition, the rejuvenation of Bencoolen Street and nearby POMO and Selegie Centre (which was sold en bloc recently) looks set to add more buzz and vitality to the area.”
The Property is highly accessible via public transport, major roads and the Central Expressway. In particular, Parklane Shopping Mall is within walking distance to four MRT stations: Rochor and Bencoolen stations on the Downtown Line; Bras Basah station on the Circle Line; and Dhoby Ghaut interchange station, which connects the North-East Line, North-South Line and the Circle Line.
The 33 strata retail units on Basement 1 are situated near the stairway that leads directly to the main entrance of Parklane Shopping Mall on Level 1, fronting Selegie Road. Currently, all the units have been tenanted and the Property will be sold with tenancy. Tenants include fast-food chain McDonald’s, Comics World and cyber gaming cafes.
Among the 33 strata retail units, the tenancy lease for 14 units will be expiring in 2020, thereby offering the opportunity to reposition and refresh the tenant mix of these units. Alternatively, investors may consider an upward revision of rents upon expiry of the existing lease and yield a higher return.
Mr. Tan added, “Subject to relevant approvals for the change of use, the units could potentially be leased to private education services providers, F&B operators such as food court or hotpot restaurant, or even a supermarket – all of which should tap into the growing population catchment in the area. In addition, Parklane Shopping Mall presents en bloc sale potential given its age profile and prime location.”
Owing to the property’s commercial-use zoning, foreigners are eligible to purchase the retail units. Furthermore, additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) are also not applicable.
The Expression of Interest exercise will close at 3.00 pm on 26 September 2019.