Edmund Tie & Company (ET&Co), today announced that a prime ground floor strata commercial space at Coronation Shopping Plaza located at Bukit Timah Road is up for sale by tender. ET&Co is the sole marketing agent of the prime ground floor strata commercial space at Coronation Shopping Plaza.
The prized commercial property at Coronation Shopping Plaza enjoys excellent visibility at street level and high footfall of crowd from the surrounding affluent residential estates and prestigious schools. Tan Kah Kee and Botanic Gardens MRT stations are also less than a five-minute walk away.
The subject property at Coronation Shopping Plaza has a strata floor area of approximately 603 square metres (sq m) or 6,491 square feet (sq ft), occupying a prominent corner with direct street level access from the main thoroughfare of Bukit Timah Road and Coronation Road.
Senior director of investment advisory at ET&Co Swee Shou Fern commented on the prized commercial property at Coronation Shopping Plaza saying: “This presents an extremely attractive opportunity for the astute investor to own this exceptional freehold commercial asset which offers strong and stable rental cashflow. The property is currently tenanted to HSBC Bank and Starbucks. Given its strategic location attributes, the subject property is also ideal for end users looking to operate their business out of a premise in this established precinct.”
In recent years, shops units located on the second and third storey of Coronation Shopping Plaza have been trading in the price range of about $3,800 to $4,000 per sq ft.
The guide price for the prized commercial property at Coronation Shopping Plaza is $35m.
As a commercial property, foreigners are eligible to purchase it and will not be subjected to any Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
Coronation Shopping Plaza was also known as “Silo”, perhaps in reference to the former Silo supermarket that was set up by the Singapore Industrial Labour Organisation. The shopping plaza used to house video rental stores, a comic store and a bookstore which were frequented by students from the many schools in the vicinity.
Built in 1979, this shopping centre takes its name from the nearby Coronation Road. In the early 20th century, this area was part of an estate owned by Hokkien merchant Choa Lam Tiong. In 1912, the roads here, including Empress Road and King’s Road, were named to commemorate the coronation of King George V of the United Kingdom the year before.
Coronation Plaza replaced an earlier row of shophouses and has three floors of shops and 20 apartments on the top level. Its location has made it a retail hub popular with students and teachers from nearby schools including Hwa Chong Institution, Nanyang Girls’ High School and National Junior College. Today, it remains timeless as it still stands tall as one of the major shopping centres along Bukit Timah Road that continues to draw visitors.
The tender exercise for the prized commercial property at Coronation Shopping Plaza will close on Friday, 18 January 2019 at 12 noon.
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The biggest gainers following the new property cooling measures is likely be owners of strata portfolio of offices and shophouses approved for commercial use. The property cooling measures affected almost all categories of buyers and is predicted to achieve its intended objectives of cooling demand and moderating price growth.
One report said investors looking for alternatives to park their money in the wake of property cooling measures, would divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.
Commercial properties such as the prized commercial property at Coronation Shopping Plaza may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.
To buy a commercial or Industrial property under company name where the company is well established with an existing operating business with strong financials, TDSR may be waived on the individual. However director is usually required to become personal guarantors of the loan the company undertakes. Hence this may affect the director’s other purchases, such as for buying a residential property, due to the loading from the TDSR for guaranteeing a loan.
Some banks even advertise 100 to 120% loan. This is due to a combination of working capital as well as commercial/industrial property loan, but this only applies to company with strong cash flow position. Commercial property is different from residential property and the considerations are more complex and varied, though the payoff may be worthwhile for discerning investors.
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