http://www.straitstimes.com/premium/...-shop-20130822

$10m-$12m price tag for Tampines coffee shop

Published on Aug 22, 2013


A HOUSING Board coffee shop with living quarters on Tampines Street 91 is up for sale by public tender with an asking price of $10 million to $12 million.

Properties such as this rarely come up for sale, said consultancy Jones Lang LaSalle (JLL), which has been appointed to manage the tender exercise.

JLL head of investments and residential Karamjit Singh said: "The vendors are expecting offers in the region of $10 million to $12 million for the property."

With repositioning, he said, the coffee shop "could be a quality asset with a steady income stream" along with potential for rental appreciation.

The coffee shop has a strata floor area of about 4,844 sq ft and sits at the corner of Block 915. It is tenanted until 2015, with a ground-floor shop space of about 4,058 sq ft, and 786 sq ft of living quarters on the second level.

The coffee shop is less than 400m away from the upcoming Tampines West MRT station, slated for completion in 2017.

Mr Singh said: "There are a limited number of coffee shops being transacted, partly due to the relatively low supply of such properties. Over the past three years, there was an average of only 33 HDB eating houses that changed hands."

HDB coffee shops have come under the spotlight since news broke last month of a 4,025 sq ft shop in Hougang sold for a record $23.9 million.

Mr Singh said one reason coffee shops are in demand is that the "entry-level food and beverage business is effectively recession proof" as residents find them a cheap and convenient place to buy their meals.

The tender closes on Sept 26.

RACHAEL BOON