The fully-tenanted property is an excellent opportunity for investors seeking an income-generating asset with potential upside for future growth.
SINGAPORE, 21 October 2020 — Colliers International (NASDAQ and TSX: CIGI), a global leader in commercial real estate services, announced today that a row of four adjoining freehold 4-storey conserved shophouses located at 265, 267, 269 and 271 Outram Road will be up for sale via an expression of interest exercise (EOI) for at least S$50 million on Thursday, 22 October 2020.
The indicative price of S$50 million translates to approximately S$2,733 per square foot (psf) based on an existing Gross Floor Area (GFA) of approximately 18,295 sq ft (1,670 sq m).
The property comprises an exceptional row of four contiguous freehold 4-storey conserved shophouses located within Tiong Bahru Secondary Settlement conservation area. It has a land area of 6,125 sq ft (569 sq m) and a Net Lettable Area (NLA) of approximately 16,049 sq ft (1,491 sq m).
Zoned for residential with commercial at 1st storey, it has a total of four commercial units on the 1st storey and 17 residential units spanning across the 2nd – 4th storey. The property had undergone Addition & Alterations (A&A) works back in 2019. Presently, the commercial units are leased to FoodPanda and an up-and-coming bistro bar, while the residential units are leased to a master tenant. The property currently enjoys full occupancy and is to be sold with existing tenancies.
Located along Outram Road, the property has an excellent connectivity with the Central Expressway (CTE) and other major arterial roads. The property is one bus stop away from Outram Park MRT Interchange Station and is about 5 minutes’ walk to the upcoming Havelock MRT Station on the Thomson-East Coast Line.
It is also conveniently situated near the vibrant streets of Tiong Bahru and numerous amenities, including popular eateries such as Tiong Bahru Bakery and Tiong Bahru Food Centre.
For sale via Expression of Interest: A row of adjoining freehold conserved shophouses at 265-271 Outram Road
Steven Tan (陈添裕), Senior Director of Investment Services at Colliers International, said,“There are only about 6,760 conserved shophouses in Singapore. As such, conserved shophouses tend to offer stable income and capital appreciation to investors, given their vintage charm and limited supply in Singapore.”
“The property is fully occupied and is excellent for investors who are looking for a ready income-generating asset with potential upside for future growth”.
Based on caveats lodged in URA REALIS, transaction activity before and post-circuit breaker period were relatively stable, indicating steadfast interest in shophouses despite the economic uncertainty. The most recent transactions of shophouses in Districts 1 and 2 were transacted between S$3,300 to S$3,800 psf.
Comparing with the freehold or 999-year leasehold commercial shophouses located in Districts 1 and 2, 265, 267, 269 and 271 Outram Road is located along the city fringe and offers a more attractive price. With shophouses in the city fringe area becoming more attractive, this opportunity is timely for investors who are on a keen lookout for shophouses especially in the city fringe location with potential upside for future capital appreciation.
Mr Tan added, “This property is located less than 200 metres from the contemporary enclave of cafes, specialty coffee joints and lively food market that are popular among the locals and tourists alike. In addition, residents staying in the shophouses get to enjoy the rustic and modern surroundings, and the absolute convenience that the locality brings about, including a short driving distance to the Singapore General Hospital (SGH) and Central Business District of Singapore”.
The EOI for this property will close on Thursday, 19 November 2020, at 3 pm.