A portfolio of 32 freehold city-fringe shophouses located along Lavender Street and Serangoon Road has been launched for sale by public tender at a guide price of S$138 million, marketing agent JLL announced on Wednesday.
Assuming no development charge is payable, the indicative price for The Lavender Collection translates to S$1,736 psf (per square foot) on the estimated GFA (gross floor area), or about S$934 psf ppr (per square foot per plot ratio), JLL said.
The shophouses, which have development potential, occupy a combined land area of about 49,244 sq ft, and a GFA of about 79,502 sq ft. Under the Master Plan 2019, the site is zoned “commercial” with a gross plot ratio of 3.0, and is located within the Jalan Besar Secondary Settlement conservation area.
JLL added that there is no additional buyer’s stamp duty or seller’s stamp duty imposed on the purchase of the portfolio.
Public tender for The Lavender Collection will close at 3pm on Oct 16.
Clemence Lee, senior director of capital markets at JLL, said: “With prices of CBD (central business district) shophouses rising over the last two years, we are noticing that investors are starting to divert their attention to city fringe shophouses instead, as prices have yet to catch up and rental yields are comparatively higher. The launch of The Lavender Collection is timely, and we expect strong interest from developers, real estate funds, family offices and local companies during the public tender exercise.
“With the portfolio being located within the Jalan Besar Secondary Settlement conservation area, there is opportunity for the new owner to construct a six-storey rear extension at the back of the shophouses to double the portfolio’s GFA to 147,732 sq ft, subject to approval by the relevant authorities. After which, the new owner can either sell the shophouses on an individual basis, or hold the entire portfolio for long-term income.
“An enquiry on the development baseline record for one of the shophouses was submitted. It found that the development baseline is high, reflecting a plot ratio of 3.0 under Use Group A (which includes commercial use). Assuming the same outcome for all 32 shophouses, no development charge is payable should prospective purchasers wish to maximise the portfolio’s GFA.”
The Lavender Collection is situated within walking distance from Boon Keng MRT station, Bendemeer MRT station and Farrer Park MRT station. It is also located within a 10-minute drive of the central business district and Orchard Road, and easily accessible via the Pan Island Expressway and Central Expressway.
Jalan Besar, which signifies “main road” in Malay, was one of the earliest areas to be developed in Singapore. Due to its rich heritage, Jalan Besar was granted conservation status in 1991. Today, the city-fringe locale has transformed into a commercial and medical hub, supported by various F&B (food and beverage) and lifestyle offerings, JLL noted.
Major commercial developments in the area include Aperia, Arc 380, CT Hub, Connexion and City Square Mall. The area is also undergoing rejuvenation with several new developments underway, including Centrium Square, a 19-storey commercial development comprising retail, medical suites and office space; and Uptown@Farrer, a mixed-use development by Low Kheng Huat, which will consist of retail and residential space.
Nearby, the Urban Redevelopment Authority has recently marked the Kallang River precinct as a key growth area. Some initiatives include the injection of new residential precincts at Kampong Bugis and the Kallang Airport area, as well as the introduction of more sporting and community facilities.