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Several 999-year leasehold strata commercial units have been put up for sale via expression of interest, revealed Colliers International.
First on the list are seven strata commercial units at Peninsula Plaza, which carry an indicative price of $13.89 million or $2,788 per sq ft (psf) based on the total strata area of 4,983 sq ft.
The portfolio comprises six retail units, measuring between 463 sq ft and 862 sq ft, as well as a 1,485 sq ft office unit. Five of the retail units are currently tenanted, while the remaining retail unit is vacant. The office unit, on the other hand, is owner-occupied.
Colliers noted that buyers have the option to acquire the units with existing tenancies and on as-is basis.
Peninsula Plaza is a 30-storey mixed-use building comprising a 24-storey office block, a five-storey retail podium and a car park. Located near the City Hall MRT Interchange station, the 999-year leasehold building enjoys excellent connectivity with the Central Expressway (CTE) and other major arterial roads.
Meanwhile, one retail strata unit at The Adelphi is being offered for $1.8 million or about $2,740 psf based on its 657 sq ft strata area. Currently approved for night club use, the unit will be sold with existing tenancy.
The Adelphi is situated directly opposite Peninsula Plaza, which means it is also near the City Hall MRT Interchange station.
The most recent transaction within The Adelphi involved a 312 sq ft strata retail unit on the 2nd floor which was sold for $1.1 million or $3,524 psf in January.
“These units located near City Hall are well-suited for long term investment and are excellent for investors looking for steady income-generating assets with potential upside for income growth. The developments are old and there may be en-bloc potential to redevelop and rejuvenate the area into a vibrant and designated spot for social hangouts,” said Steven Tan, Senior Director of Capital Markets and Investment Services at Colliers International.
Finally, a strata retail unit at Far East Shopping Centre has an indicative price of $2 million or about $2,999 psf based on its 667 sq ft area. It is being sold with existing tenancy.
Situated at the heart of Orchard Road, Far East Shopping Centre has high visibility and benefits from high footfall along the shopping belt.
The most recent transaction in Far East Shopping Centre involved a 3rd storey strata unit measuring 182 sq ft, which was sold for $860,000 or $4,700 psf in January.
“With the Thomson-East Coast Line completing in 2021, this shopping centre will have an improved connectivity and will be even more accessible within a 10-minute drive to the central business district,” said Tan.
“Although the retail sector remains fragile, choice location of the retail units remains as a key factor when looking for an investment property. Thus, retail properties that enjoy high footfall, steady income and great accessibility are likely to be sought after by investors,” he added.
Overall, the portfolio of nine strata commercial units have a total indicative price of $17.69 million, which works out to about $2,805 psf on total strata area.
The EOI exercise for these properties closes on 3 September.
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Eugenia Liew, Senior Digital Content Specialist at PropertyGuru, shared this story. To reach out or pitch news stories, contact eugenialiew@propertyguru.com.sg.
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