SINGAPORE, 9 March 2022 – ERA Realty Network (ERA Realty) is appointed exclusively to launch for sale, via Expression of Interest, a portfolio of 23 income-producing strata retail shops located in various prime locations of Singapore. The portfolio comprises two Housing and Development Board (HDB) shops located in Toa Payoh and Ang Mo Kio, and a collective 21 strata shops found in Far East Plaza, Sims Lim Square, Peninsula Plaza and People’s Park Complex. Potential buyers have the option to purchase the properties either individually or collectively as a portfolio.
HDB Shops
1. BLK 190 TOA PAYOH LORONG 6 #01-562 SINGAPORE 310190
The property consists of a retail shop located right in the heart of Toa Payoh Town Centre. The centre is located in the heart of Toa Payoh, where a comprehensive range of goods and services serve a population of about 102,000 residents in the estate. Prominent landmarks here include the HDB HUB, which consists of an office tower and retail podium with direct access to both the Toa Payoh MRT station and bus interchange. The Blk 190 property has a floor area of about 1,033 sq ft and a 79-year lease that started in July 1992. It is currently subdivided into two shop lots and leased to two different tenants. Being located right in front of the popular Food Alley, it enjoys excellent visibility and constant flow of retail foot traffic.
2. BLK 710A ANG MO KIO AVE 8 #01-2625 SINGAPORE 561710
The property consists of a standalone shop unit within a two-storey commercial centre located in Ang Mo Kio Central. This HDB shop has a floor area of about 3,574 sq ft and an 86-year lease that started in July 1993. The two-storey commercial centre is occupied by major financial companies such as Maybank and Phillip Investor Centre. The property enjoys prominent main road frontage and is a five-minute walk from Ang Mo Kio Hub and Ang Mo Kio MRT station. Being in the heart of Ang Mo Kio where the total resident population is about 155,000, the property enjoys a large and increasing retail catchment.
“With about 80% of the residential population living in HDB estates and towns, the HDB shop is a familiar and essential part of everyone’s life and forms the backbone of Singapore’s retail scene. HDB shops located in mature HDB towns are extremely popular and hard to come by. They enjoy capital and rental appreciation during times of economic growth and have proven to be a defensive asset during weak and uncertain economic times due to the essential goods and services that they provide. All the units enjoy prominent frontages and allow buyers to explore further subdivision or change of use, subject to authorities’ approval,” said Donald Goh, Director, Capital Markets and Investment Sales, ERA Realty, who is handling the sales of the properties.
“These 2 shops are fully tenanted with an attractive weighted yield of more than 4% and we expect keen interest from family offices, private equity funds, private investors and high-net-worth individuals (HNWIs) who are looking for immediate rental income with potential for capital appreciation in the mid-to-long term,” added Donald.
Shopping Centre Shops
3. 11 NORTH BRIDGE ROAD #01-28/28A/29/38/44/45A/45B PENINSULA PLAZA SINGAPORE 179098
The property comprises six ground floor retail shop units located in Peninsula Plaza, an iconic office and retail development, which is within walking distance to Raffles City and City Hall MRT station. The immediate location has a wide array of popular retail, F&B and tourist destinations. With a total strata area of about 2,723 sq ft, the property enjoys a tenure of 999-year. The shop units enjoy prominent frontage facing North Bridge Road and Coleman Street. The vicinity has undergone major rejuvenation with the completion of Funan, Capitol Piazza, The Capitol Kempinski Hotel and Capitol Theatre. This has brought a significant amount of pedestrian foot traffic back to the mall.
4. 1 ROCHOR CANAL ROAD #05-36/53/54/61/62/63/64/65/72/73/74 SIM LIM SQUARE SINGAPORE 188504
The property comprises 11 strata retail shops, all located on the fifth floor of Sim Lim Square, popularly known as an IT electronics mall. Located at the junction of Bencoolen Street and Rochor Canal Road, the IT mall is easily accessible by main arterial roads and is within walking distance to Rochor MRT station. The properties have a 99-year lease from April 1983 and a total strata floor area spanning about 5,447 sq ft. The shop units all face the main atrium with immediate access from the lifts and escalators.
5. 14 SCOTTS ROAD #02-40/42 FAR EAST PLAZA SINGAPORE 228213
The two freehold strata retail units located at the second floor of Far East Plaza have a total floor area of 753 sq ft. The shops are located strategically at a corner right in front of the main entrance of the well-known shopping centre. Far East Plaza consists of a five-storey retail mall with serviced apartments and was completed in 1982. It is popular over the years for being a fashion incubator and it also houses many retail, lifestyle and concept shops as well as F&B establishments. It is located along the world-renowned Orchard Road and Scotts Road shopping belt that is highly popular with locals and tourists.
6. 1 PARK ROAD #01-32/33 PEOPLE’S PARK COMPLEX SINGAPORE 059108
Located on the ground floor of People’s Park Complex are two adjoining retail shops with a total strata floor area of about 818 sq ft. People’s Park Complex is an iconic commercial and residential development completed in the 70s. It is located right in the heart of Chinatown and is popular with locals and tourists for its wide array of retail shops offering lifestyle, travel, F&B and health services. In terms of accessibility, the shops are located just a few minutes’ walk from Chinatown MRT station.
“With the recent property cooling measures announced in December 2021, we have witnessed a shift in demand for strategically located commercial properties that promise capital appreciation potential. Based on recent reports, we anticipate that the retail market has bottomed out of the pandemic and is on an upswing. Last year, retail sales in Singapore grew 11.1% after three straight years of decline. Hence, it is the opportune time for discerning investors to put their money into commercial properties. We foresee that this well-diversified and investment-grade portfolio will provide a compelling and attractive opportunity for real estate funds, family offices and HNWIs to ride that recovery. Furthermore, the investment quantum of about $80 million for the entire portfolio is one that is palatable to the market. With the portfolio 100% tenanted, buyers can mitigate the short-term volatility while looking forward to future capital appreciation,” said Steven Tan, Managing Director, Capital Markets and Investment Sales, ERA Realty.
ERA Realty is the exclusive marketing agent for the Expression of Sale exercise, which closes on 21 April 2022, Thursday, at 3pm.
