6 adjoining Tanjong Pagar shophouses put on market for S$57.8m

A ROW of six adjoining shophouses in Tanjong Pagar have been launched for sale, either individually or collectively, via an expression of interest exercise, joint marketing agents Colliers International and Jones Lang Lasalle Singapore (JLL) said on Tuesday.

Located at 48 to 56 Peck Seah Street, the three pairs of two-storey conservation shophouses with attic sit on three separate land lots with a combined land area of 8,213 square feet (sq ft).

They have a total indicative value of S$57.82 million, which works out to about S$2,900 per square foot (psf) based on the total existing gross floor area of 19,938 sq ft.

Situated in the central business district (CBD), the property is set to benefit from the Singapore government's plans to rejuvenate the city centre under the Draft Master Plan 2019, said Colliers. Initiatives such as the CBD Incentive Scheme to convert ageing office buildings to hotels and homes will inject vibrancy and attract a diverse community to the area, the real estate services firm added.

"Conservation shophouses in prime city locations - typically regarded as trophy assets - are highly sought-after," said Steven Tan, director of capital markets at Colliers.

The six shophouses are fully let to insurance cooperative NTUC Income, kitchen and bathware brand Kohler, and Middle Eastern restaurant Fat Prince, with the latter two leasing the majority of the space. The property is being offered for sale with the existing tenancies.

"This is a rare opportunity to acquire a row of conservation shophouses with strong tenant covenant and an attractive initial yield of above 3 per cent," said Clemence Lee, senior director of capital markets at JLL.

Colliers' Mr Tan added: "Amid the upward trend in rents in Tanjong Pagar, the shophouses will likely have strong reversionary rental recovery across the majority of leases, particularly in a robust leasing market with limited supply."

Both marketing agents expect strong interest, especially from investors such as boutique real estate funds, family offices and high net worth individuals.

The buyer can explore other uses for the space, such as for co-working or even an exclusive members' club, Mr Tan suggested.

The site is zoned for commercial use under the Draft Master Plan 2019, thus the additional buyer's stamp duty and seller's stamp duty are not applicable. It has a leasehold tenure of 99 years, starting from May 1994.

The shophouses are located opposite Tanjong Pagar MRT station, and have a 33-metre street frontage along Peck Seah Street.

The expression of interest exercise will close at 3pm on Oct 23.