Eu Realty puts up 2 South Bridge Rd shophouses for sale

However, the group will keep 4 other adjacent shophouses

Sep 21, 2017

Kalpana Rashiwala


EU Realty (Singapore), a fully-owned subsidiary of Eu Yan Sang International, has put up a pair of adjoining shophouses along South Bridge Road for sale. The asking price of S$28.5 million works out to S$2,842 per square foot based on the gross floor area of 10,027 sq ft.

Spanning three levels and an attic, the two shophouses, at Nos 273 and 275 South Bridge Road, sit on a single land lot of 3,089 sq ft.

Currently Eu Yan Sang International's fully-owned unit, Eu Yan Sang Integrative Health, operates a TCM (traditional Chinese medicine) clinic on the ground floor of the two shophouses.

The second level is vacant while the third and attic levels are leased to an office tenant, according to Shaun Poh, executive director of capital markets at Cushman & Wakefield Singapore, which is marketing the property jointly with Savills Singapore through an expression of interest exercise that will close on Oct 24.

Eu Yan Sang group is open to leasing back the ground-floor space following the property's sale, but is also prepared to move out if that is the buyer's preference.

Eu Realty also owns four adjacent shophouses at Nos 265, 267, 269 and 271 South Bridge Road. The ground level of Nos 267, 269 and 271 is where the iconic flagship store of Eu Yan Sang (Singapore), another fully-owned unit of Eu Yan Sang International, is located. The upper levels of these three units as well as the whole of No 265 are leased to third parties.

Currently Eu Realty does not plan to sell these four shophouses. All six shophouses have 999-year leasehold tenure.

The joint marketing agents of Nos 273 and 275 said the property presents an attractive investment opportunity given its prime location in the heart of the popular Chinatown Conservation Area, within the CBD. "Traditionally, this is considered the busier stretch of South Bridge Road due to its proximity to the main Chinatown area bounded by Pagoda, Trengganu, Smith, Temple and Sago streets. With a prominent frontage and superb visibility, the new owner of the subject property will be able to capitalise on this to showcase their name or branding.

"Alternative uses for the subject property such as restaurants or F&B are subject to relevant authorities' approval. The new owner will have to make a change-of-use application for the authorities' evaluation," commented the joint marketing agents.

The property is near the Chinatown and Telok Ayer MRT stations as well as the upcoming Maxwell station. "The conservation shophouse market in Districts 1 and 2 has seen several high-priced transactions in the past six months and is expected to continue attracting buying interest given limited supply, and interest in this asset class by foreign buyers as well as property funds," said Mr Poh.