New Reporter
03-04-23, 08:37
Portfolio of HDB shophouses, Peninsula Plaza retail unit for sale at S$52.2 million guide price
Mar 28, 2023
A PORTFOLIO comprising 11 HDB Housing and Development Board (HDB) shophouses, along with a 999-year leasehold strata retail shop in Peninsula Plaza, are up for sale at a guide price of S$52.2 million.
Each HDB shophouse is located in mature residential hubs with prominent frontages and high footfall, nearby road junctions, grocery markets, coffee shops or food centres, said exclusive marketing agent CBRE on Tuesday (Mar 28).
Overall, the assets are classified under two clusters.
Interested parties may purchase the assets either individually or collectively as a portfolio.
The first cluster consists of seven HDB shophouses, occupied by blue-chip tenant 7-Eleven on a long-term basis.
These assets are leased to Dairy Farm International’s Cold Storage Singapore, which holds the licence to the 7-Eleven brand in Singapore.
Individual guide prices for the assets under the first cluster range from about S$1.68 million for a two-storey shophouse along Changi Village Road, with a total strata area of 1,421 square feet (sq ft), to S$5.67 million for a corner HDB shop with dual frontage along Jurong West Street 51, spanning 1,518 sq ft of strata area.
With built-in annual rental revisions in place, the first cluster of assets provides investors with an “attractive, stable and defensive income stream”, said CBRE.
The second cluster features four HDB shophouses, as well as a strata commercial unit at #01-35, Peninsula Plaza.
Guide prices for HDB shophouse assets start from S$3.15 million for a two-storey unit at Tampines Street 11 with 1,873 sq ft of total strata area.
The most expensive asset within the second cluster – and the entire portfolio – is an HDB shop at 190 Toa Payoh Lorong 6, with a guide price of S$12.18 million for a total strata area of 1,033 sq ft.
Spanning 538 sq ft of strata area, the Peninsula Plaza commercial unit has an individual guide price of S$6.09 million.
CBRE said all assets under the second cluster are fully tenanted, and therefore provide immediate rental income to the income investor.
There is also flexibility for an owner-occupier to utilise the shophouses upon the expiry of the assets’ respective leases, added the real estate services and investment company.
Clemence Lee, CBRE’s executive director of capital markets in Singapore, said the overall portfolio offers investors a “rare opportunity to acquire a series of prime heartland HDB shophouses that would otherwise be challenging to accumulate”.
Supply of such properties is extremely limited, especially since sales of HDB shops were discontinued in 1998, he noted.
This makes such properties “almost akin to conservation shophouses” as only about 8,500 HDB shophouses can be resold on the private market.
The expression of interest exercise for the portfolio of assets closes at 2 pm on May 10.
https://www.businesstimes.com.sg/property/portfolio-hdb-shophouses-peninsula-plaza-retail-unit-sale-s522-million-guide-price
Mar 28, 2023
A PORTFOLIO comprising 11 HDB Housing and Development Board (HDB) shophouses, along with a 999-year leasehold strata retail shop in Peninsula Plaza, are up for sale at a guide price of S$52.2 million.
Each HDB shophouse is located in mature residential hubs with prominent frontages and high footfall, nearby road junctions, grocery markets, coffee shops or food centres, said exclusive marketing agent CBRE on Tuesday (Mar 28).
Overall, the assets are classified under two clusters.
Interested parties may purchase the assets either individually or collectively as a portfolio.
The first cluster consists of seven HDB shophouses, occupied by blue-chip tenant 7-Eleven on a long-term basis.
These assets are leased to Dairy Farm International’s Cold Storage Singapore, which holds the licence to the 7-Eleven brand in Singapore.
Individual guide prices for the assets under the first cluster range from about S$1.68 million for a two-storey shophouse along Changi Village Road, with a total strata area of 1,421 square feet (sq ft), to S$5.67 million for a corner HDB shop with dual frontage along Jurong West Street 51, spanning 1,518 sq ft of strata area.
With built-in annual rental revisions in place, the first cluster of assets provides investors with an “attractive, stable and defensive income stream”, said CBRE.
The second cluster features four HDB shophouses, as well as a strata commercial unit at #01-35, Peninsula Plaza.
Guide prices for HDB shophouse assets start from S$3.15 million for a two-storey unit at Tampines Street 11 with 1,873 sq ft of total strata area.
The most expensive asset within the second cluster – and the entire portfolio – is an HDB shop at 190 Toa Payoh Lorong 6, with a guide price of S$12.18 million for a total strata area of 1,033 sq ft.
Spanning 538 sq ft of strata area, the Peninsula Plaza commercial unit has an individual guide price of S$6.09 million.
CBRE said all assets under the second cluster are fully tenanted, and therefore provide immediate rental income to the income investor.
There is also flexibility for an owner-occupier to utilise the shophouses upon the expiry of the assets’ respective leases, added the real estate services and investment company.
Clemence Lee, CBRE’s executive director of capital markets in Singapore, said the overall portfolio offers investors a “rare opportunity to acquire a series of prime heartland HDB shophouses that would otherwise be challenging to accumulate”.
Supply of such properties is extremely limited, especially since sales of HDB shops were discontinued in 1998, he noted.
This makes such properties “almost akin to conservation shophouses” as only about 8,500 HDB shophouses can be resold on the private market.
The expression of interest exercise for the portfolio of assets closes at 2 pm on May 10.
https://www.businesstimes.com.sg/property/portfolio-hdb-shophouses-peninsula-plaza-retail-unit-sale-s522-million-guide-price