A 4-storey freehold commercial development at 381 Joo Chiat Road that comes with an attic and basement carpark, has been put up for sale at an indicative price of S$50 million.
Zoned commercial under the Master Plan 2019 with a plot ratio of 3.0, the sale of the 5,708 square foot (sq ft) site will be conducted through an expression of interest exercise.
Joint marketing agents CBRE and Savills said the property offers a wide 16.5-metre frontage that provides excellent visibility. It is fitted with regular and efficient floor plates that can be accessed by a lift and an internal staircase, with the ground floor approved for permanent restaurant use, while the upper floors are approved for function room (levels 2 and 3), office (level 4) and ancillary resting area for staff (attic).
The basement car park can house up to 6 cars and the incoming owner can look at naming and signage rights of the development for branding purposes.
Foreigners are eligible to purchase with no Additional Buyer's Stamp Duty.
Nestled within the East Coast/Joo Chiat enclave, the asset has a total existing floor area of approximately 24,714 sq ft and is currently fully tenanted.
The marketing agents said significant value-add potential, further capital and rental values can be unlocked under various schemes such as creative tenant repositioning or Asset Enhancement Initiatives (AEI).
As the Urban Redevelopment Authority no longer permits new eating houses in East Coast / Joo Chiat, the asset's permanent food-and-beverage-approved ground floor space presents an opportunity for a single restaurant operator.
In addition, AEI works can be conducted to reconfigure the ground floor space as an Outdoor Refreshment Area to accommodate al-fresco dining concepts. The upper floors can be repositioned and leased out separately to medical or dental clinics, yoga studios or educational centres, subject to approval from the relevant authorities.
Michael Tay, CBRE Singapore's head of capital markets said that given the rarity of freehold commercial developments in East Coast/Joo Chiat, this is an exclusive opportunity to acquire a commercial building in a quaint location dominated by shophouses.
"Underpinned by ongoing rejuvenation and resilient performance through the pandemic, we continue to observe strong interest for suburban commercial assets," he noted, adding that the site will appeal to owner occupiers, high networth individuals or family offices for long-term investment.
"The district's strong history of capital and rental growth presents an ideal investment opportunity for astute investors seeking to diversify their portfolio away from the Central Business District."
Yap Hui Yee, senior director of investments sales and capital markets at Savills Singapore added that following Savills' recent sale of 201 Joo Chiat Road for S$31.5 million in December 2021, the agency has been receiving strong interest for freehold commercial properties in the East Coast/Joo Chiat area.
Predominantly an affluent residential enclave characterised by colourful shophouses and residential estates, East Coast/Joo Chiat has established itself as a lifestyle destination in the east with an eclectic mix of cafés, boutique grocers and lifestyle retail outlets.
Also in the precinct is the newly-revamped i12 Katong shopping complex.
In addition to the bus stop at its doorstep, 381 Joo Chiat Road is connected to other parts of Singapore via major arterial roads and the East Coast Parkway. The Marine Parade MRT Station is also set to complete in 2024.
The expression of interest exercise closes on May 12 at 3pm.