Historically rich National Aerated Water Building along Kallang River Relaunched for Sale

Singapore, 5 April 2021 – CBRE, as the appointed marketing agent, is pleased to offer for sale The National Aerated Water Building (“the Property”) – a conserved freehold two-storey commercial building located at 1177 Serangoon Road. The sale will be conducted through an Expression of Interest exercise which closes on 11 May 2022 at 3pm.

Strategically located along Serangoon Road, the Property comprises three units with a total strata area of approximately 6,555 sq ft and features a direct access to the communal roof terrace that offers a magnificent view of the Kallang Riverfront. The ground floor retail unit comes with permanent “Restaurant” approval, while the second-floor unit has been fully tenanted to a student care operator, which will provide the successful buyer with immediate and stable rental income.

The indicative guide price for the National Aerated Water Building is S$18.9 million, which works out to about S$2,883 per sq ft on the total strata area. As this is a commercial property, foreigners are eligible to purchase and there will be no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the transaction.

Gazetted for conservation by the Urban Redevelopment Authority in 2017, the National Aerated Water Building is the commercial podium that is fully integrated with Selangor Dredging’s JUI Residences. The mixed-use development obtained Temporary Occupation Permit in October 2021 and the 117-units within JUI Residences has been fully sold.

The asset’s unique architectural design and column-free layout provides the opportunity for the buyer or tenants to create an experiential riverside dining concept within the development. This will draw strong appeal from the sizable population of the Bendemeer and Potong Pasir planning subzones of approximately 48,600 residents. Coupled with the property’s strong attributes such as its prime location, freehold tenure, rare F&B approvals on the ground floor, and proximity to two MRT stations, the successful buyer can expect to enjoy strong capital appreciation in the mid to long term.

Clemence Lee (利伟强), Executive Director of Capital Markets, Singapore at CBRE, says, “The National Aerated Building was first launched for sale by CBRE in August 2021. During the last marketing exercise, while the owner did receive a handful of bids, none were up to expectations. As such, the property was subsequently withdrawn from the market. Following the easing of community Safe Management Measures effective 29 March 2022 - permissible group size for social gatherings increased to 10 persons, sale and consumption of alcohol at F&B outlets after 10.30pm is allowed and fully vaccinated travellers from all countries to enjoy quarantine-free entry into Singapore - these new measures are expected to have a positive impact on the retail and tourism sectors, and accelerate their recoveries towards pre-pandemic levels. As such, this has given the owner the confidence and view that it is timely to relaunch the property for sale and give the market the opportunity to reconsider this charming asset.”

With only a handful of commercial assets in Singapore with direct and unobstructed riverfront access, the National Aerated Water Building presents an excellent opportunity for investors and owner occupiers to acquire a beautiful heritage asset along the Kallang River. The successful buyer can look to unlock further value by utilizing the communal areas such as the sizable porch and roof terrace as an Outdoor Refreshment Area (ORA) for a bar or café, subject to approval from the relevant authorities.

Mr Lee continues, “The Urban Redevelopment Authority (URA) has recently imposed new restrictions on strata-subdivision of commercial properties in key areas within the Central Area. This will limit the supply of new strata commercial assets coming into the market moving forward and we expect this to have a positive impact on prices for existing commercial strata properties. ”

The property is conveniently located within 650-metres to Potong Pasir MRT station and 850-metres to Boon Keng MRT Station. Located in the city fringe, the property is highly accessible to other parts of Singapore such as Orchard Road and the Central Business District via the Central Expressway.

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