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Four adjoining freehold strata-titled retail units fronting the main concourse of Far East Plaza has been put up for sale by public tender, sole marketing agent CBRE announced Monday, 27 October.
Located on the upper ground floor of the shopping mall within Orchard Road, units #02-64/65/68/69 are offered as a two-unit or four-unit deal structures. Unit sizes range from 624 sq ft to 1,248 sq ft.
Two units are being sold with existing tenancies while the other two units are offered on vacant possession basis.
According to CBRE, new supply of retail space in Orchard Road will remain limited for the next few years, citing that only five percent of the 5.7 million sq ft of retail space is expected to be completed between 2014 and 2018 will be located in the Orchard Road area. “Looking ahead, retail rents in Orchard Road will continue to grow given strong occupancy level, limited supply and positive demand,” added.
Sammi Lim, Associate Director, Investment Properties, CBRE said: “Given the strategic location and its popularity, the purchaser will certainly be able to enjoy strong potential capital appreciation of the property.”
The units come with a guide price of S$6 million for each pair, which works out to about $9,615 per sq ft.
Citing recent caveats lodged for Far East Plaza, the latest transaction for two retail shops on the third floor were being transacted at S$8.35 million and S$12.28 million, which works out to $11,763 and $11,769 per sq ft respectively, the sale took place in September this year. CBRE noted that the highest transacted price achieved in 2014 was for a second floor unit which was sold for $12,310 per sq ft in April 2014.
CBRE also added that As the units are zoned commercial, both locals and foreigners are eligible to purchase with no additional buyers’ stamp duty (ABSD) and no sellers’ stamp duty (SSD) imposed on the purchase of the property.
Tender for the units will close on 2 December.
Image: Exterior shot of Far East Plaza (Source: CBRE)
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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