Seven Sim Lim Square properties for use as nightlife venues are on sale for S$17 million

Sep 05, 2022

Seven retail units in the electronics and IT mall Sim Lim Square have been listed for sale by private treaty with an indicative price of S$17 million, according to the marketing agent Huttons Asia (Sep 5).

The estimated stratum floor area of the portfolio is 5,156 square feet (sq ft). All the units have Class 1 entertainment licences that permit operation until 3 am. In addition, they have a balance master tenancy of more than 5 years and an expected rental yield of 4%.

The properties are zoned for commercial use according the Master Plan of the Urban Redevelopment Authority. Foreigners are permitted to acquire the flats without any seller's stamp fee or additional buyer's stamp duty. Huttons indicated that prospective purchasers can acquire the full portfolio or individual properties.

Sim Lim Square, a 6-story building with 492 flats, was built in 1987. It is close to the MRT stations at Rochor, Jalan Besar, Little India, and Bugis. Additionally, Rochor Road, Victoria Street, the Central Expressway, and the East Coast Parkway provide access.

James Wong, the head of sales and auction for Huttons Asia, stated that the loss of lettable space approved for nightlife entertainment purposes as a result of recent collective sales and the non-renewal of nightlife entertainment licences in Orchard Towers could increase demand for retail units with the necessary infrastructure and approvals in the coming years.

It was reported in May that Golden Mile Complex was sold for S$700 million through a collective sale to a consortium consisting of Far East Organization, Perennial Holdings, and Sino Land.

En bloc die-hard Peace Centre and Peace Mansion were sold for S$650 million to Chip Eng Seng, a SingHaiyi joint venture, and Ultra Infinity in December 2021.

In 2019, the owners of Sim Lim Square sought a collective sale with a reserve price of S$1.25 billion, offering an additional 27% of built-up area and the potential of reduced development fees.