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OCBC is placing a pair of conservation shophouses along Bukit Pasoh Road up for sale, with a guide price of around S$20 million, reported The Business Times.
This translates to around S$2,350 per sq ft based on the property’s gross floor area (GFA) of 8,503 sq ft.
Zoned for commercial use, 11 and 13 Bukit Pasoh Road have three storeys as well as a mezzanine level.
The bank has owned the two freehold shophouses since 1935. The last major refurbishment on the property was done in 2012.
“From time to time we review our property holdings for opportunities to unlock value. If we receive a good offer for any of our properties, we will consider selling it,” said a spokeswoman for OCBC.
Held by OCBC’s property unit, these historical properties are not mortgagee sales, she added.
Moreover, 11 and 13 Bukit Pasoh Road were not part of the portfolio of 38 strata shop units and shophouses that OCBC put up for sale in April 2015.
The bank has appointed JLL as the exclusive agent to market the sale of the two adjacent shophouses via a tender that will close on 2 August.
Situated within the Chinatown Historic District (Bukit Pasoh) Conservation Area, 11 and 13 Bukit Pasoh Road have a combined land area of 2,926 sq ft, and is fully leased to six tenants.
The S$20 million price reflects a gross yield of almost two percent, based on the property’s current rental income.
Investors looking to add value to the property could do internal refurbishment works and improve tenant mix, said Clemence Lee, manager, capital markets at JLL.
In fact, he expects the shophouses to attract strong interest from family offices, boutique property funds and high-net-worth individuals in search for an asset class that is rich in historical value and limited in supply. Foreigners are also eligible to buy the property as the site is completely zoned for commercial use. There is also no Seller’s Stamp Duty and Additional Buyer’s Stamp Duty on said properties.
This article was edited by Chang Hui Chew, Content Marketing Manager for PropertyGuru Singapore.