Ravi Chandran
Colliers International announced on Aug 22 that it is inviting offers for the purchase of 33 strata retail units on Basement 1 at Parklane Shopping Mall in Selegie Road via an Expression of Interest exercise.
The 33 strata retail units have an indicative value of $55.7 million, which works out to $2,200 per square foot (psf) based on its total strata floor area of 2,352 square metres (25,316.7 square feet).
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The 33 strata units – with floor area ranging from 23 sq m to 186 sq m (248 sq ft to 2,002 sq ft) – have a 99-year leasehold tenure with effect from 1 December 1974.
Parklane Shopping Mall, in the Bras Basah/Bugis arts and cultural precinct within the city, is well-positioned to benefit from the burgeoning student population from nearby education institutions – including Singapore Management University (SMU), LASALLE School of the Arts, and School of the Arts (SOTA) – as well as the growing high-end private residential enclave in the immediate surroundings.
Steven Tan, Director of Capital Markets & Investment Services at Colliers International, said, “This is a rare and exciting opportunity for investors to tap the growth potential of a vibrant district where cultural heritage meets urban regeneration. The area is teeming with activity being near the Little India tourist attraction, numerous hotels and schools, as well as new residential projects. In addition, the rejuvenation of Bencoolen Street and nearby POMO and Selegie Centre (which was sold en bloc recently) looks set to add more buzz and vitality to the area.”
The 33 strata retail units for sale are highly accessible via public transport, major roads and the Central Expressway. In particular, Parklane Shopping Mall is within walking distance to four MRT stations: Rochor and Bencoolen stations on the Downtown Line; Bras Basah station on the Circle Line; and Dhoby Ghaut interchange station, which connects the North-East Line, North-South Line and the Circle Line.
The 33 strata retail units on Basement 1 are situated near the stairway that leads directly to the main entrance of Parklane Shopping Mall on Level 1, fronting Selegie Road. Currently, all the units have been tenanted and the Property will be sold with tenancy. Tenants include fast-food chain McDonald’s, Comics World and cyber gaming cafes.
Among the 33 strata retail units, the tenancy lease for 14 units will be expiring in 2020, thereby offering the opportunity to re-position and refresh the tenant mix of these units. Alternatively, investors may consider an upward revision of rents upon expiry of the existing lease and yield a higher return.
Mr Tan added, “Subject to relevant approvals for the change of use, the units could potentially be leased to private education services providers, F&B operators such as food court or hotpot restaurant, or even a supermarket – all of which should tap into the growing population catchment in the area. In addition, Parklane Shopping Mall presents en bloc sale potential given its age profile and prime location.”
Owing to the property’s commercial-use zoning, foreigners are eligible to purchase the retail units. Furthermore, additional buyer’s stamp duty (ABSD) and seller’s stamp duty (SSD) are also not applicable.
The Expression of Interest exercise for the 33 strata retail units will close at 3.00 pm on 26 September 2019.
Retail property landlords may be relenting on rents in favour of higher occupancy, says a recent research report. it added that that there are signs that retail property landlords may be relenting on rents in favour of higher occupancy – given that the island-wide vacancy rate dropped to 7.7% at the end of the second quarter from 8.7% last quarter.
Mr Paul Ho, chief mortgage officer at iCompareLoan, commenting on the 33 strata units for sale said, “although the retail property market is still trying to find its footing, the units offered for sale at Parklane Shopping Mall looks attractive for two reasons. One is, the location. The area is served by several MRT stations and buses and so people will find it easy to reach the shopping mall.”
He added: “Another reason is that foreigners are eligible to purchase the retail units. One recent research report said that properties in Singapore are very attractive to foreigners, especially investors from China. With the turmoil in Hong Kong, some investors may want to park their money in safer markets like Singapore.”
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