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by Cheryl Tay
Six adjoining strata shop units at People’s Park Complex (pictured) have been launched for sale with a guide price of between S$36 million and S$38 million.
This works out to around S$4,960 psf to S$5,240 psf, based on their total strata area of around 7,254 sq ft.
According to a media report, the six strata units have been subdivided into 33 units, of which 29 are currently leased out. Meanwhile, the leases on the remaining four units expired recently.
Donald Han, Special Adviser at HSR, the sole marketing agent for the property, said the net property yield works out to around 4.4 percent, based on the current rental income for the 29 leased units as well as the price tag of S$36 million. Assuming that all 33 units are leased out, the total net yield would increase to around 4.8 percent.
Located on a site with a remaining lease of around 55 years, People’s Park Complex is a mixed development project near Chinatown MRT Station. HSR is pitching the six strata units as an investment opportunity in prime retail space for rental returns.
“Alternatively this investment would also appeal to end users looking for large prominent ground-floor retail space in the location,” said Han.
He noted that expression of interest (EOI) for the sale of the units will close on 13 June 2012.
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