A portfolio of five retail assets comprising two HDB coffeeshops, a HDB shophouse and two strata-titled retail mall units have been put on sale at a guide price of $30.92 million.
In total, the five assets have a strata area of 10,151 sq ft, according to exclusive marketing agent CBRE.
The two HDB coffeeshop units are a 3,079 sq ft one-storey HDB shop unit at 1 Tanjong Pagar Plaza and a 3,681 sq ft two-storey HDB shophouse at 262 Jurong East Street 24.
The sole HDB shophouse unit is a 1,798 sq ft two-storey HDB shophouse at 348 Jurong East Avenue 1.
Meanwhile, the retail units are a 764 sq ft prime unit within The Centrepoint and a 829 sq ft prime unit within Parkway Parade.
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The units can be acquired collectively or on an individual basis, and the sale will be conducted via an expression of interest exercise, which will close at 3pm on April 15. City & Country understands there are separate owners for each asset on sale.
The HDB assets are typically highly regarded by astute investors given the scarcity of such assets. Two of the three are approved for coffeeshop usage, which can typically command a rental premium, says CBRE.
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The retail unit for sale in Parkway Parade
The two-storey HDB shophouse for sale at 348 Jurong East Avenue 1
The one-storey HDB shop unit for sale at 1 Tanjong Pagar Plaza
Clemence Lee, executive director of capital markets, Singapore at CBRE, says: “This portfolio presents a distinguished opportunity to acquire a coveted collection of three HDB shophouses and two strata-titled retail units, a significant offering with two of the shophouses commanding rare, approved coffeeshop uses.”
HDB coffeeshops remain one of Singapore’s most exclusive asset classes, adds Lee. Out of the 8,500 privately-held HDB shophouses nationwide, a mere 402 are privately-held and approved for coffeeshop use. “This acute scarcity, compounded by HDB’s cessation of new shophouse sales in 1998, renders this a truly blue-chip opportunity that rarely surfaces on the open market as astute investors continue to tightly hold on to units that command prime and strategic locations.”
Lee says the portfolio is priced at a “palatable investment quantum” of around $30 million for the entire portfolio, or between $4 million to $10 million for individual units. “We expect strong interest from a wide range of investors such as owner-occupiers, boutique real estate funds, corporate investors, family offices and high-net-worth individuals.”
He adds: “The incoming investor can also look at individual sales of the units as an exit strategy in the future, with each unit being priced at a much lower quantum that can appeal greatly to individual investors and owner-occupiers.”
The retail unit for sale at The Centrepoint
The Centrepoint, completed in 1983, is Frasers Property's first asset. It also has full ownership of 51 Cuppage Road, a 10-storey office building directly linked to The Centrepoint.
Frasers Property announced in February that it is paying $391.9 million, or $2,577 psf per plot ratio (psf ppr), for the rear plot of The Centrepoint, which will bring the group closer to full ownership of the Orchard Road property. The tender price assumes full commercial use, a fresh 99-year tenure and intensification to a plot ratio of 5.6.
The land betterment charge associated with the lease top-up and intensification is estimated at approximately $253.13 million.
The property was first put up for sale in January at a guide price of $418 million, which translates to $2,709 psf ppr.
While Frasers Property holds a majority stake in the main road-facing plot of The Centrepoint, the so-called rear plot consists of 66 retail units and 66 residential apartments under various owners, including Frasers Property which owns over 52% of the units by strata area. Frasers Property continues to manage both the front and rear plots.
Photos: CBRE
