Veteran property investor Stanley Quek is selling another conservation shophouse property. This time, an entity connected to him has offloaded three adjoining two-storey shophouses on Tras Street, for S$21.2 million. The property, which is part of the Tanjong Pagar Conservation Area, is being bought by an entity affiliated to Clifton Partners, a real estate investment firm owned by Singaporean Zain Fancy.
The price paid is understood to reflect a gross yield of nearly 3.5 per cent based on the current tenancies. Standing next to Maxwell House, the three shophouses are at 33, 35 and 37 Tras Street. They are on a single land lot of about 4,450 sqft and with 99-year leasehold tenure starting April 1994 – with about 74 years’ balance lease. The property translates to nearly S$2,600 per square foot based on built-up area of about 8,160 sqft.
The ground floor is leased to Z Wedding, while Hassell Design occupies the upper level. Other recent shophouse sales by entities connected to Dr Quek, a doctor-turned-property developer and investor, are a pair of properties at 40 and 41 Duxton Hill, which transacted at S$24.8 million; and 10 Stanley Street, which went for S$12.5 million. 8M Real Estate picked up the freehold Stanley Street property on vacant possession. The pair of shophouses on Duxton Hill are on sites with 99-year leasehold tenures, and have about 69 years left on the lease.
Although on two separate land lots, the units are linked, forming a distinctive corner shophouse lot. The two units have a total built-up area of about 8,900 sqft across four levels and an attic. Tenants are on the street level include Italian restaurant Latteria, which has also leased the open space next door from the state on a Temporary Occupation Licence for an alfresco dining area. The upper levels are leased to Adelphi Digital Consulting Group. The shophouses were acquired by Alan Choe, a former head of the Urban Redevelopment Authority and also former chairman of Sentosa Development Corporation. In an unrelated transaction, a shophouse at 60 Boat Quay is changing hands for S$8.5 million. It is on a site with 999-year leasehold tenure.