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Spanning four floors on levels three to six, the car park comprises 648 car parking lots, 56 motorcycle lots as well as a restaurant unit on the car park’s top level. It has a total strata area of about 182,340 square feet, including the 2,809 sq ft restaurant.
The entire multi-storey car park at People’s Park Complex has been put up for sale with a guide price of $42 million, which works out to $57,000 per car park lot, revealed sole marketing agent Brilliance Capital.
Spanning four floors on levels three to six, the car park comprises 648 car parking lots, 56 motorcycle lots as well as a restaurant unit on the car park’s top level. It has a total strata area of about 182,340 square feet, including the 2,809 sq ft restaurant.
The marketing agent noted that the $42 million guide price works out to around $208 per sq ft (psf) for the car park and $1,673 psf for the restaurant unit.
It added that the subject property is “priced attractively” compared to the two other car park sales it concluded last year at Parklane Shopping Centre and Holland Road Shopping Centre, which were sold for over 360,000 and $70,000 per lot, respectively.
“As communal car parks are now no longer allowed separate strata titles, this has definitely become one of the most tightly-held asset class that is well sought-after, but rarely available for sale,” said Sammi Lim, Founder and Executive Director, Brilliance Capital.
“The incoming buyer can enjoy the security of an immediate rental income from the restaurant unit. This is also an attractive opportunity for car park operators who are looking to acquire car parks to add onto their portfolio, for aspiring car park owners to dive into a car park operations business, and for investor-buyers to unlock further capital values of the asset via various change of use potential through decanting part of the car park.”
Car parks – which are considered as “relatively low-risk investments” – have “proved to be an appealing alternative to traditional real estate classes” such as residential and commercial units.
“With the authorities limiting the number of car parking lots in new developments, existing buildings with generous car parking allocation hold a competitive advantage,” said Brilliance Capital.
“Due to the limited car parking lots and significant high parking costs in core Raffles Place and Marina Bay CBD, People’s Park Complex car park has become one of the beneficiaries where the office crowd tap on a park and ride scheme to their offices.”
And since the 31-storey mixed-use development People’s Park Complex is a full commercial zoned property, both local and foreigners can acquire the car park with no Additional Buyers’ Stamp Duty (ABSD) or Sellers’ Stamp Duty (SSD) payable.
The tender for the car park closes on 29 July.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: victorkang@propertyguru.com.sg
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