SINGAPORE, 24 September 2019 — Colliers International (NASDAQ and TSX: CIGI) and Jones Lang Lasalle Singapore (JLL), as joint marketing agent, are inviting offers for the purchase of a row of three contiguous pairs of two-storey shophouses with attic at 48 to 56 Peck Seah Street in Tanjong Pagar via an Expression of Interest (EOI) exercise.
The property has an indicative value of SGD57.82 million, which works out to SGD2,900 per square foot (psf) based on the total existing gross floor area of 19,938 sq ft. The six conservation shophouses - in the Chinatown (Tanjong Pagar) Historic District Conservation Area - are located on three separate land lots and have a combined land area of 8,213 sq ft.
Situated in the bustling Tanjong Pagar precinct in the central business district (CBD), the property is well-positioned to benefit from the government’s plans to further rejuvenate the city centre under the Draft Master Plan 2019. Initiatives such as the CBD Incentive Scheme to convert ageing office buildings to hotels and homes will inject more vibrancy and attract a diverse community to the area, further strengthening the “live, work, play” proposition.
Steven Tan (陈添裕), Director of Capital Markets at Colliers International, said, “Conservation shophouses in prime city locations - typically regarded as trophy assets - are highly sought-after and we expect strong investor interest for the Peck Seah Street property. This is a rare and exciting opportunity to acquire a row of adjoining shophouses in an attractive and thriving precinct that is still undergoing urban transformation.”
Clemence Lee (利伟强), Senior Director, Capital Markets, JLL said: “Having been beautifully restored and fully let to Kohler, NTUC Income and Fat Prince, 48 to 56 Peck Seah Street presents purchasers a rare opportunity to acquire a row of conservation shophouses with strong tenant covenant and an attractive initial yield of above 3%. With its excellent attribute, we expect strong interest from investors such as boutique real estate funds, family offices and high-net-worth individuals (HNWIs).”
Strategically located opposite the Tanjong Pagar MRT station on the East West Line, the shophouses are easily accessible via public transport. They are also highly visible given the prominent 33-metre street frontage on to Peck Seah Street.
The site on which the shophouses sit is zoned Commercial under the Draft Master Plan 2019 and it has a leasehold tenure of 99 years, with effect from May 1994. Owing to the shophouse’s commercial-use zoning, the additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) are not applicable.
Mr Tan added, “On the back of an upward trend in rents in Tanjong Pagar, the Peck Seah Street shophouses will likely have strong reversionary rental recovery across the majority of leases, particularly in a robust leasing market with limited supply. We believe the prospective buyer could tap the unrealised potential of the shophouses by exploring other uses for the space. Subject to relevant approvals, the shophouses could potentially be used for coworking or even an exclusive members’ club.”
The shophouses are offered for sale with existing tenancies. Currently, majority of the space has been leased to kitchen and bathware brand Kohler, and the Fat Prince restaurant.
The EOI exercise will close at 3pm on 23 October 2019. The shophouses can be sold either individually or collectively.