Freehold strata retail podium in Bukit Timah up for sale with S$30m indicative price

A FREEHOLD ground-floor strata retail podium at Coronation Shopping Plaza on 587 Bukit Timah road is up for sale via expression of interest with an indicative price of about S$30 million.

In a press statement on Wednesday (Feb 9), CBRE said the podium covers a total strata area of about 6,491 square feet. It is currently fully leased to 3 tenants - KFC, Starbucks and Zenith Education Studio, the exclusive marketing agent added.

Foreigners are eligible to purchase the podium as there is no additional buyer's stamp duty (ABSD) or seller's stamp duty (SSD) imposed on the commercial property transaction.

The podium is located at Coronation Shopping Plaza which is connected to other parts of Singapore via the Pan-Island Expressway and the Central Expressway. Public bus and train services are also a short walk away from the mall, said CBRE.

Several educational institutions such as Hwa Chong Institution, Nanyang Girls' High School, National Junior College and St Margaret's Secondary School surround Coronation Shopping Plaza, the agent added.

CBRE's senior director of capital markets, Clemence Lee, said he expects strong interest for the podium from local and foreign high-net-worth individuals, family offices, boutique real estate funds and corporate companies. He noted that freehold ground-floor assets are usually tightly held and rarely made available for sale.

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Lee highlighted that investors will be provided with an "immediate and stable rental income" as the property is currently released to 3 "blue-chip" tenants.

"With no new known sizeable retail supply coming up in the area, we believe in the continued compelling popularity of retail assets in this area, and prospective buyers of the subject property will be able to enjoy strong rental and capital appreciation moving forward," he said.

He added that freehold strata commercial properties in Bukit Timah have long been viewed as "treasured generational assets treated with great prestige and privilege".

The property listing comes as Knight Frank reports a positive overall performance of the strata retail market in 2021 with a total sales value of S$496.5 million, the highest since 2017.

In H2 2021, 74 freehold strata retail units were sold and the average price for units increased 15 per cent year on year from H2 2020.

Knight Frank said the growth in the market could be attributed to new enterprises and local brands establishing a foothold in the retail market as well as shophouse retailers considering more affordable retail space options when prices are at a bargain.

The research team projects that the market will recover moderately in H2 2022 and estimates total sales for the year to hover around S$500 million, following a growing interest in units because of the affordability.

The expression of interest exercise for the podium closes on Mar 16, 2022 at 3 pm.