Six conservation shophouses in Tanjong Pagar for sale

A row of six adjoining conservation shophouses in Tanjong Pagar has been put up for sale at an indicative price of $57.8 million.

Marketing agent JLL yesterday said the guide price for the units – 48 to 56 Peck Seah Street – works out to about $2,900 per sq ft, based on the existing gross floor area of 19,938 sq ft.

The units, which are owned by a fund managed by Phoenix Property Investors, have a 33m-wide road frontage and are near the Tanjong Pagar MRT station.

The private equity property fund acquired the shophouses in January 2015 for $42.8 million from shipping firm K Line (Singapore).

JLL said the properties were refurbished at a cost of $2 million in September 2015.

“Due to its rarity, contiguous row of shophouses are highly sought after by investors and are typically traded at a premium as compared to a single shophouse,” said Mr Clemence Lee, senior manager for capital markets at JLL.

“We anticipate strong interest from astute end-users and investors such as boutique real estate funds, family offices and high net worth individuals.”

The shophouses sit on three separate land lots and have a combined land area of 8,213 sq ft. The site is zoned commercial under the Chinatown (Tanjong Pagar) Historic District Conservation Area in the 2014 Master Plan.

JLL said the units will come with existing tenancies. About 80 per cent of the space has been leased to kitchen and bathware manufacturer Kohler and Middle Eastern restaurant Fat Prince.

“On a fully-let basis, the property has a yield of 3 per cent,” Mr Lee told The Straits Times.

He said the prospective owner of the units can expect to enjoy “capital and rental upside” from the urban regeneration of the area over the medium to long term.

New projects in the area include Tanjong Pagar Centre, the upcoming Frasers Tower and the redevelopment of CPF Building.

JLL noted two prominent transactions in the area – 77 to 80 Amoy Street, which sold for $59.5 million ($2,500 psf), and 97 Amoy Street for $12.8 million ($2,600 psf) – both in January.

Transactions last year included 25 Boon Tat Street, which went for $19 million ($3,500 psf); 11 and 13 Bukit Pasoh Road, for $25 million ($2,940 psf); as well as 205 and 207 New Bridge Road, for $20.5 million ($3,525 psf).

JLL said the six shophouses in Peck Seah Street can be sold either individually or collectively. The expression of interest exercise closes on May 23 at 3pm.

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