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Two conservation shophouses in Tanjong Pagar have been put up for sale with a guide price of $22.6 million, or about $2,800 psf based on their gross floor area, revealed marketing agent JLL.
Located in Tras Street, the three-storey shophouses have been extensively renovated and are fully tenanted. The ground floor of both properties are occupied by F&B tenants while a serviced apartment operator is occupying the upper floors.
With a land area of 1,494 sq ft, the bigger shophouse is being offered for $11.8 million, while the smaller one – measuring 1,298 sq ft – is priced at $10.8 million.
JLL capital markets associate director Clemence Lee expects the properties to receive strong interest from local companies, boutique real estate funds, family offices as well as high-net-worth individuals (HNWIs).
“With competing shophouses in the market offering yields of only around 2.0 – 2.5 percent, the two shophouses on Tras Street offer investors an exceptional opportunity to acquire two beautifully restored trophy assets which are stabilised at a high 3.5 – 3.8 percent yield.”
Given their strategic location near the iconic Tanjong Pagar Centre and Maxwell Chambers, the properties provide the incoming purchaser “with an exceptional opportunity to claim a stake in this exciting commercial and lifestyle destination”.
“As more new developments are added to the Tanjong Pagar micro-market, the new owner can expect to enjoy capital and rental upside from the urban regeneration and the gradual transformation of the area in the mid to long term,” Lee said.
Buyers can acquire the properties individually or collectively.
And since they sit on land zoned for commercial use, foreigners are allowed to acquire them, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) payable.
The expression of interest exercise for the shophouses closes on 1 November.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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