Comprising two mixed-use buildings, two shophouse and six industrial units
Enbloc building cluster:
104 & 106 Jalan Jurong Kechil
Built in the late 1980s, 104 and 106 Jalan Jurong Kechil is a 4-storey development comprising two F&B shops on the ground floor, two commercial schools on the second floor and 16 residential units on the third and fourth floors. Sitting on a 3,623-square-foot land zoned “Residential with commercial at first storey”, the property has a maximum permissible gross floor area of approximately 8,507 square feet. The property has undergone extensive A&A works in 2016 and is fully tenanted as at 31 March 2020.
Stephen Ho (何志華), Head of Residential Services at CBRE, says, “This property presents a valuable opportunity to acquire a single income-producing asset of freehold tenure within the mature and affluent Bukit Timah district, one of Singapore’s largest private landed residential enclaves. As the property comes with six strata titles, the successful buyer will have the flexibility for strata sell-down in the future.”
261 Outram Road
261 Outram Road is a 4-storey pre-war conservation block with an estimated built-up area of 7,325 square feet. It sits on a 2,276-square-foot site zoned “Residential with commercial at 1st storey” under the 2019 Master Plan. The property is fully tenanted to a fitness gym on the ground floor and a co-living operator on the upper floors. Located directly opposite YWCA Outram Centre, the property is within five minutes’ walk from Havelock MRT station on the Thomson-East Coast line that is scheduled to be operational end-2021.
Mr Ho adds, “As this property was extensively refurbished in 2016, we do not foresee any large capital expenditure required in the near future. With a prominent frontage along Outram Road, the property is suitable for owner-occupiers who are looking for building naming and signage rights.”
101 and 101A Soo Chow Walk
101 and 101A Soo Chow Walk is a corner two-storey shophouse with total strata floor area of 3,477 square feet. The property sits on a site listed under the two-storey envelope control and street block plan and is zoned for full commercial usage. Featuring a long frontage of approximately 35 metres along Soo Chow Walk and Lor Mega, the shophouse is currently tenanted to a commercial school.
Located off Upper Thomson Road, the property is a one-minute walk to the Upper Thomson MRT station, which is slated to open by the end of this year. The property is open to both local and foreigner buyers with no additional buyers’ stamp duty (ABSD) or sellers’ stamp duty (SSD) imposed on the purchase of the property.
Six units at Ann Chuan Complex
Ann Chuan Complex is a six-storey light industrial building located at 115 King George’s Avenue. The total strata floor area of the six strata-titled units is approximately 9,999 square feet. Apart from the ground-floor unit that is approved for F&B use, the remaining five units are to be used for light industrial activities. The 3,401 square foot ground-floor unit is currently tenanted to a hipster café. The property is a short five-minute walk to both Lavender and Bendemeer MRT stations.
Clemence Lee (利伟强), Senior Director of Capital Markets at CBRE says, “The portfolio presents a unique opportunity to acquire various income-producing asset types at one go. What’s more, these freehold properties are located in Singapore’s popular districts – Bukit Timah, Tiong Bahru and Lavender and are commanding a price that is palatable to the market.”
On a cluster basis, we expect offers within the ballpark of S$30 million for the enbloc buildings at Jalan Jurong Kechil and Outram Road, which works out to about S$1,895 per square foot on the maximum permissible gross floor areas. Separately, the indicative price for the strata-titled unit cluster is in the range of S$21 million, which works out to about $1,558 per square foot on the strata floor area.”
Mr Ho adds, “Due to the assorted nature and high occupancy rate of the portfolio, we expect strong interest from a varied pool of both local and foreign buyers who are seeking such income-producing properties for immediate rental income stream, yet still have the potential of capital appreciation in the medium to long term.
“We have observed increasing enquiries from investors, including family offices and high net worth individuals, who are looking to reallocate their funds from the stock market into real estate for more stable returns. We believe that more investors will turn into real estate as a defensive instrument play, in view of the current low interest rate environment.”
CBRE is the sole marketing agent for this Expression of Interest exercise, which closes on 6 May 2020 at 3pm.
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CBRE Group, Inc. (NYSE:CBRE), 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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
