Three Adjoining Pairs of Shophouses Prominently Located Along Peck Seah Street For Sale via Public Tender
Singapore, 27 October 2014
CBRE is pleased to launch the Public Tender sale of 48 to 56 Peck Seah Street, a row of 3 contiguous pairs of prime 2-storey with attic conservation shophouses in the heart of CBD.
The offering, located at 48 / 48A / 52 / 54 & 56 Peck Seah Street, has a combined land area of approximately 8,213 square feet. The total current gross floor area is approximately 19,860 square feet. The site is zoned for commercial usage under the Chinatown (Tanjong Pagar) Conservation Area in the 2014 Master Plan.
48 to 56 Peck Seah Street is strategically located opposite Tanjong Pagar MRT Station and the upcoming landmark integrated development, Guoco Tower, which would also be the tallest building in Singapore, consisting of residential, commercial, office and hotel slated for completion in 2016. The shophouses enjoy about 33 metres of prominent street frontage with high visibility.
Sammi Lim, Associate Director, Investment Properties, CBRE said, “Shophouses along Peck Seah Street are always tightly held and extremely rare for any to be available for sale. The vendor, “K” Line (Singapore) has been occupying the premises since 1997.
Prospects continue to look for such quality shophouse assets in the CBD for mid to long-term hold. These shophouses are a limited-edition asset in the property market as they are designed with a distinctive façade, possess unique charm and rich historical value; and three pairs of adjoining shophouses in a row in a centrally located area is an extremely rare opportunity. The adjoining shophouses provide the buyer with the extra flexibility and creativity to configure the space to suit their own-use requirements or cater to the needs of tenants.
We have had increased interest from buyers recently who are looking at such adjoining shophouses to carry out alterations and additions works to create an iconic building which they can call their own. Owning this property is like buying into the medium to long term growth of the location. Property owners are expected to enjoy stronger capital upside moving forward in tandem with the Tanjong Pagar transformation.”
48 to 56 Peck Seah Street will attract both local and overseas investors who are looking for quality assets for owner-occupation with potential rental and capital appreciation. We expect the sale to garner interest from both investors and owner-occupiers to use them as corporate headquarters with building naming rights for boutique law firms, architectural firms, creative outfits, oil & gas,
F&B operators and family businesses.
Based on caveats, the most recent shophouse transactions were at 43 Keong Saik Street and 6 Bukit Pasoh Road in August and July this year. These were sold for approximately $2,693 and $3,133 per square foot over the gross floor area respectively. The guide price for the subject property at $49 million or $2,497 per square foot over gross floor area is in line with the market and expects to gather strong interest from the market. ”
The property will also certainly benefit from the continued rejuvenation of Tanjong Pagar, especially with the completion of the upcoming Guoco Tower. This global icon aims to position Tanjong Pagar as a premier quality business and lifestyle district in the CBD differentiated by the richness of the historical district, park and landscape spaces. The stretch of shophouses along Peck Seah Street would strategically be located just at the doorstep of this mega project, and would enjoy the voluminous pedestrian traffic flow from this major thoroughfare.
Derek Wakeling, Managing Director, “K” Line (Singapore) said, “We have enjoyed the extreme convenience of the location and strong heritage of the shophouses for the past 17 years. With the expansion of the business, it’s with a tinge of sadness that we have to relocate as we have outgrown the premises and would need to expand to a bigger space. We do trust that a good buyer would come along and maximize the use of the property. With this opportunity being offered to the market on a vacant possession basis, this will provide vast flexibility to the buyer, allowing them to explore various options for the property, which can cater ideally to both owner-occupation buyers and investors.”
As a commercial property, this public tender is open to both local and foreigners with no additional buyers’ stamp duty (ABSD) or sellers’ stamp duty (SSD) imposed on the purchase of the property.
CBRE is the sole marketing agent for this Public Tender Exercise.
The tender closes on 9 December 2014, Tuesday at 3 pm.
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Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.