http://www.businesstimes.com.sg/real...hammer-amended

Prime ground-floor unit at Shenton House to go under the hammer (Amended)

Indicative price from owner is S$13.3m; net yield nearly 3%; Colliers' auction will also have an estate sale of a semi-D at Marshall Rd

By Kalpana Rashiwala

[email protected]

@KalpanaBT


The unit at Shenton House (left) has the potential to be used as an F&B outlet and/or a clinic, while the semi-detached house at 94 Marshall Road (right) may be redeveloped into a three-storey bungalow.

Nov 12, 2015


A GROUND-FLOOR shop/showroom unit at Shenton House with an indicative price of S$13.3 million, and an old semi-detached house along Marshall Road that is ripe for redevelopment will be making their auction debut at Colliers International's auction on Nov 20.

The Shenton House unit is being offered by its owner - an investment company that has leased the 6,630-square-feet unit to a tenant that uses it as a jewellery shop and showroom. The monthly rental is S$39,786 (inclusive of service charge) and the lease runs until August 2017 with an option to renew for two years at a rental rate to be agreed. Based on the S$13.3 million indicative price and the current rental, the net yield would be close to 3 per cent, said Colliers' deputy managing director Grace Ng. The gross rent works out to S$6 per square foot (psf) a month, and when the lease expires, the space may be subdivided into smaller units - to fetch higher psf rent.

"There is water supply in this unit, which means there is potential to use it as a food and beverage outlet and/or a clinic," said Ms Ng. "Moreover, there is potential for an en bloc sale at Shenton House," she added.

Shenton House is a 25-storey commercial development with retail units on levels 1-3, a car park deck (totalling 225 car park lots) on levels 4-5 and offices from levels 7-25. It is on a site with a balance lease term of about 53 years. The building is a short distance from the existing Downtown MRT Station (on the Downtown Line) and next to the proposed Shenton Way Station on the Thomson-East Coast Line (under construction).

Those eyeing land on which to build a landed home may want to check out an old semi-D at 94 Marshall Road in the East Coast/Dunman roads area. This is a standalone semi-D as the adjoining unit has been torn down for redevelopment into a bungalow.

94 Marshall Road has a freehold land area of 4,938 sq ft and may be redeveloped into a three-storey bungalow, according to Ms Ng. Although the site is zoned for residential use with 1.4 plot ratio under Master Plan 2014, it does not meet the 1,000 sq metres (10,764 sq ft) minimum plot size for apartment development stipulated by Urban Redevelopment Authority.

The indicative price for the property is S$5.2 million to S$5.3 million.

Colliers' upcoming auction will also feature a mortgagee sale of a three-bedroom apartment on the 67th floor of The Sail @ Marina Bay. It offers bay views from the living/dining areas and two of the bedrooms. At its debut auction on Oct 29 - also conducted by Colliers - the property was withdrawn at S$3.95 million, translating to S$2,431 psf for the 1,625-sq-ft unit.

The bedrooms have timber strip flooring while the remaining areas have homoge-neous/ceramic tiles.

The master bedroom is en suite. There is a common bathroom for the other two bedrooms. The unit, which also has a study area, is being sold with vacant possession. The mortgagee is a local bank.

The Sail @ Marina Bay, developed by a City Developments and AIG joint venture, is on a site with a balance lease term of about 86 years.

While the unit at The Sail did not get sold at Colliers' auction last month, the property agency did mange to sell a three-storey semi-D at 21 Lucky Crescent in the Upper East Coast Road area at the event. The estate sale fetched S$3.71 million, below the S$3.9 million to S$4 million indicative price. Sitting on 3,583 sq ft of land, the freehold property has five bedrooms and a maid's room.

Sales at property auctions in Singapore in the first nine months of this year totalled S$90.8 million, an increase of 54 per cent from the S$58.8 million transacted in the same period last year, according to Colliers International Research.

[Amendment note]: An earlier version of this article incorrectly stated that Shenton House is on a site with a balance lease term of about 73 years. Colliers International, which provided that information, has written in to say the balance lease term on the site should be about 53 years. The above article has been revised to reflect this.