SINGAPORE, 5 November 2019 — Colliers International (NASDAQ and TSX: CIGI), a global leader in commercial real estate services, today announced that it will put up a prime 4-storey conservation shophouse at 21 New Bridge Road for sale via an expression of interest exercise for SGD19.5 million on 6 November 2019. 

The valuation price of SGD19.5 million translates to SGD3,200 per square foot (psf) based on the propose total gross floor area (GFA) of 6,062 sq ft. The seller will bear the additional cost to top up the land tenure to a fresh 99-year lease and has committed to undertake Addition & Alteration (A&A) works to build out the rear extension from the current four storeys to up to six storeys.

The shophouse is located on a site spanning 134.1 square metre (approx.1,443 square feet) with a land tenure of 99 years, effective from December 27, 1928. Under the Master Plan 2014, the site – situated within the Conservation Area - is zoned Commercial with a plot ratio of 4.2, and has an allowable building height of up to 18.35 metres (or equivalent to about six storeys based on the height of surrounding shophouses). 

Steven Tan (陈添裕), Director of Capital Markets at Colliers International, said, “We believe this property presents investment upside with untapped potential. It currently has an approved GFA of 468.4 sq m with a plot ratio of 3.49, this could be further maximised to offer 563.22 sq m of GFA under the prescribed plot ratio of 4.2 under the Master Plan. In addition, the investor would be able to actively participate in the design stage of the A&A works for the rear extension, thus ensuring that the refurbishment will suit the investor’s needs.”   

The property – located opposite The Central shopping mall in District 01 - commands excellent visibility in the heart of the city and enjoys high footfall being situated between a restaurant and a coffeeshop. It is also within walking distance to the Raffles Place commercial district, as well as the Boat Quay and Clarke Quay leisure and entertainment hotspots.

The shophouse is highly accessible via public transport, including the Clarke Quay MRT station on the North-East Line - just across the street - as well as the Raffles Place MRT interchange station nearby. 

Mr. Tan added, “We expect demand for shophouses to remain relatively consistent in the next three years, particularly from boutique investors due to the low capital quantum required. In addition, shophouses offer intrinsic value owing to their vintage charm and limited supply; they are also not subject to the recent tax hikes in residential sector. These factors make shophouses an appealing real estate asset class that are in high demand. According to Colliers Research, total shophouse transactions (with a value of SGD10 million and above) hit an all-time high in 2018 at SGD834 million.”

The shophouse is offered for sale on a sale-and-leaseback arrangement with an attractive yield of 4% on a ‘two years plus two years’ (2+2) lease structure.

Owing to the shophouse’s commercial-use zoning, the additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) are not applicable. The sale is also open to both local and foreign investors.

The EOI for the shophouse will close at 3pm on 27 November 2019.