Commercial Building In Joo Chiat Up For Grabs For S$50mil
SINGAPORE – A 4-storey freehold commercial property along 381 Joo Chiat Road, which has a basement carpark and an attic, has been launched for sale via an expression of interest (EOI) exercise with a guide price of S$50 million, reported The Business Times on Monday noon (April 11, SGT).
Sited on a 5,708 sq ft land plot with a plot ratio of 3.0, the commercial building features a ground level approved for permanent restaurant use, while the 2nd and 3rd floor are used as function rooms, level 4 is an office, while the attic is used as an ancillary resting area for employees, said joint marketing agents Savills and CBRE.
The commercial property has a wide frontage measuring 16.5m that provides superb visibility. The building’s regular-shaped and efficient floor plates can also be accessed either by a lift or an internal staircase.
Its basement car park can accommodate up to 6 vehicles and the new owner will enjoy naming and signage rights for branding purposes. As the site is zoned for commercial use, overseas investors are permitted to purchase and there’s no Additional Buyer’s Stamp Duty (ABSD).
Located at the East Coast/Joo Chiat enclave, the commercial building has an overall existing gross floor area (GFA) of about 24,714 sq ft and the space is presently fully leased.
The marketing agents disclosed that the new owner could further increase the commercial property’s capital and rental values under different schemes like creative tenant repositioning or Asset Enhancement Initiatives (AEI).
For instance, the ground level space can be reconfigured for al-fresco dining, while the upper floors can be repositioned and leased out separately to medical or dental clinics, yoga studios, or educational centres, subject to approval from the relevant government agencies.
Moreover, CBRE Singapore’s Head of capital markets Michael Tay noted that this is an exclusive opportunity to buy a commercial property in a quaint area dominated by shophouses, due to the rarity of freehold commercial assets in East Coast/Joo Chiat.
“The district’s strong history of capital and rental growth presents an ideal investment opportunity for astute investors seeking to diversify their portfolio away from the Central Business District.”
In fact, Savills Singapore’s senior director of investments sales and capital markets Yap Hui Yee revealed that after the property consultancy’s sale of 201 Joo Chiat Road for S$31.5 million in December 2021, they have been receiving strong interest for freehold commercial assets in the East Coast/Joo Chiat area.
The expression of interest exercise for the commercial building at 381 Joo Chiat Road shall close at 3pm on 12 May 2022.
