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Situated within the Jalan Besar Secondary Settlement conservation area, the shophouses have a combined land area of around 49,244 sq ft. The site is zoned commercial under the 2019 Master Plan with a gross plot ratio of 3.0.
A portfolio of 32 freehold shophouses along Lavender Street and Serangoon Road has been put up for sale, with a guide price of $138 million.
This works out to $1,736 per sq ft (psf) based on the estimated gross floor area (GFA) of about 79,502 sq ft or about $934 psf per plot ratio assuming no development charge is payable, revealed marketing agent JLL.
Situated within the Jalan Besar Secondary Settlement conservation area, the shophouses have a combined land area of around 49,244 sq ft. The site is zoned commercial under the 2019 Master Plan with a gross plot ratio of 3.0.
This means prospective buyers of the portfolio need not worry of paying Additional Buyer’s Stamp Duty or Seller’s Stamp Duty.
“With prices of CBD shophouses rising over the last two years, we are noticing that investors are starting to divert their attention to city fringe shophouses instead as prices have yet to catch-up and rental yields are comparatively higher. The launch of The Lavender Collection is timely and we expect strong interest from developers, real estate funds, family offices and local companies during the public tender exercise,” said Clemence Lee, senior director of capital markets at JLL.
He noted that the portfolio’s location within the Jalan Besar Secondary Settlement conservation area provides the new owner an opportunity to build a six-storey rear extension at the back of the shophouses, doubling the portfolio’s GFA to 147,732 sq ft, subject to authorities’ approval.
Thereafter, the new owner can sell the shophouses individually or hold the entire portfolio for long-term income.
“An enquiry on the Development Baseline Record for one of the shophouses was submitted. It found that the development baseline is high, reflecting a plot ratio of three under Use Group A. Assuming the same outcome for all 32 shophouses, no development charge is payable should prospective purchasers wish to maximise the portfolio’s GFA,” he added.
The Lavender Collection is within walking distance from Bendemeer MRT station, Farrer Park MRT station and Boon Keng MRT station. Easily accessible via the Central Expressway and the Pan Island Expressway, the portfolio is also a mere 10-minute drive to the central business district and Orchard Road.
The tender for the Lavender Collection closes on 16 October.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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