Second Chance Properties has bought 22 prime units of retail space at Sim Lim Square for S$35 million, as valued by real estate consultancy Jones Lang LaSalle.
The 22 units cover 9,604 square feet on the fifth floor of Sim Lim Square, which is located at Rochor Canal Road.
Second Chance Properties said the units are fully tenanted to 27 retailers and the gross rental per annum stands at S$2.634 million, with a return of 7.3 per cent.
It added that the acquisition is immediately profitable given the present low interest rate.
With this deal, its total property portfolio will comprise 76 retail units with a total area of 49,532 square feet, now valued at S$145 million.
Second Chance Properties said that the group will receive a total rental income of S$10.234 million per annum, after the completion of the purchase.
The deal has been approved by its Board of Directors and is subject to shareholders’ approval at an extraordinary general meeting to be held in December.
The acquisition will be funded through bank loans.
Source : Channel NewsAsia – 22 Oct 2009