Ravi Chandran
A pair of freehold corner shophouses with F&B approvals at Lavender/Kallang Precinct up for sale
Savills Singapore, announced on July 14 that it is pleased to offer for sale via Expression of Interest (EOI), a pair of freehold corner shophouses with food and beverage (F&B) approvals at the Lavender / Kallang precinct.
Savills Singapore is the the exclusive sole marketing agent for the pair of freehold corner shophouses with F&B approvals at Lavender/Kallang precinct.
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52 Foch Road (“the Property”) comprises of a pair of two-storey with attic conservation shophouses, with a four-storey rear extension. Enjoying an 18m wide main road frontage along Foch Road, the Property sits on a freehold site of approximately 2,848 sqft, and has an existing built-up area of approximately 8,417 sqft. The Property is equipped with modern specifications, being well served by a set of concrete staircases, concrete flooring and a modern lift which was installed to serve the units on the upper floors.
Located at the beginning of Foch Road / Lavender Street, 52 Foch Road enjoys high footfall throughout the day, and is conveniently located right opposite the recently completed Arc 380. The Property enjoys rare ‘restaurant’ approval on the ground floor whilst tenanted out to a coffee shop operator, and offices tenants are located on the upper floors. All units come with en-suite toilets and enjoy individual air-conditioning systems; selected units on the upper floors enjoy double volume ceiling height.
Ms Sophia Lim, Senior Manager, Investment Sales & Capital Markets at Savills Singapore, said: “In recent years, city fringe locations like Lavender have become popular amongst investors due to their rental upside and potential for capital gains. This is a rare opportunity for both investors and end-users to own a pair of freehold commercial shophouses that come with both F&B approvals and modern specifications (including a lift) in the heart of the Lavender / Kallang precinct. Of particular interest are corner shophouses with high visibility. Consequently, 52 Foch Road will provide the buyer with the flexibility to configure the space to suit an entire spectrum of commercial uses, as all seven units within the pair of freehold corner shophouses come equipped with independent air-conditioning units and en-suite toilets.
Subject to approval from relevant authorities, potential alternative uses – including café, educational, showroom, retail, fitness center, healthcare, medical, home & living and lifestyle business – can be explored. ”
The pair of shophouses enjoy high visibility with approximately 18m of prominent main road frontage along Jalan Besar. With a 270-metre proximity to Bendemeer MRT Station, the pair of freehold corner shophouses enjoys seamless connectivity to the key precincts in Singapore, while the CBD is accessible within an eight minutes’ drive.
In recent years, the location has seen vibrant transformation with high-rise residential and large-scale commercial developments sprouting up, offering a diverse range of entertainment, cultural and lifestyle attractions that bring extremely high footfall and immediate catchment. Prominent landmarks in the vicinity include the recently completed ARC 380, Aperia Mall and CT Hub. The area will continue to benefit from the transformation of the developments in the vicinity, such as the upcoming mixed developments at 2 and 21 Cavan Road and Sturdee Residences.
“The guide price for 52 Foch Road is at $13.2 million. Under the 2019 Master Plan, the pair of freehold corner shophouses is zoned ‘’Commercial’’ under the Jalan Besar Secondary Settlement Conservation Area, which allows for rear extension up to six storeys. There will be no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty, and both foreigners and companies are eligible to purchase the Property,” added Ms Lim.
The Expression of Interest (EOI) for the pair of freehold corner shophouses will close on Monday, 17 August 2020, at 3pm.
Mr Paul, chief mortgage officer at iCompareLoan, said that “although the Covid-19 circuit breaker makes real estate sales difficult at the moment, the pair of freehold corner shophouses with F&B approvals at Lavender/Kallang precinct is in a good location and is hard to come by.” Mr Ho believes smart investors who are flush with cash, will resort to value hunting instead of choosing residential properties which are still selling at unbelievable prices.
Mr Ho added that given the land scarcity in Singapore, demand for commercial properties in Singapore will continue to rise over the long term. He pointed out that Singapore continues to be a global financial centre and a trade hub with high livability scores – all of which attracts high net worth investors to the Republic. All these factors will inevitably fuel demand for commercial property in Singapore he added.
Mr Ho believes that value buys in the property market right now are are landed inter-terrace houses which’s per square feet price on the built-up area is usually less than $1,000 and commercial properties. But Mr Ho cautioned that the bigger challenge for buyers of commercial property is securing the best commercial loans.
“With the right loan, the buyer can save thousands, if not tens of thousands of dollars,” he said. Adding, “which is why they would have to work with established mortgage brokers who can provide them free service.”
Lavender is a subzone within the planning area of Kallang, Singapore, as defined by the Urban Redevelopment Authority (URA). Lavender is composed of an area bounded by Tessensohn Road in the north; Balestier Road, Lavender Street and Crawford Street in the east; the Rochor River and Rochor Canal in the south; as well as Syed Alwi Road, Serangoon Road and Rangoon Road in the west. Lavender is largely commercial, even though several blocks of public housing provided by the Housing and Development Board (HDB) exist at Jellicoe Road and French Road.
