Portfolio of 23 strata retail shops for sale

Singapore

A PORTFOLIO of 23 strata retail shops has been put up for sale via expression of interest, sole marketing agent ERA Realty announced on Thursday (Mar 10).

This includes 2 Housing and Development Board (HDB) shops located in Toa Payoh and Ang Mo Kio, and 21 strata shops in Far East Plaza, Sims Lim Square, Peninsula Plaza and People's Park Complex.

The shops are currently all tenanted, ERA noted. They can be purchased either individually or collectively as a portfolio.

Donald Goh, director of capital markets and investment sales at ERA Realty, said: "The 2 HDB shops are fully tenanted with an attractive weighted yield of more than 4 per cent. We expect keen interest from family offices, private equity funds, private investors and high-net-worth individuals who are looking for immediate rental income with potential for capital appreciation in the mid-to-long term."

"Based on recent reports, we anticipate that the retail market has bottomed out of the pandemic and is on an upswing," added Steven Tan, managing director of capital markets and investment sales at ERA.

Colliers said in its Investment Market Outlook 2022 report on Monday (Mar 7): "The higher stamp duties imposed on residential assets may lead to more spillover demand into commercial assets, especially shophouses and strata assets, which come at palatable prices to family offices and high net worth individuals."

The expression of interest sale exercise will close on Apr 21, at 3pm.