July 13, 2022
SINGAPORE, 13 July 2022 – PropNex Realty, the largest real estate agency in Singapore is pleased to offer a portfolio of four adjoining strata commercial units at 999-year leasehold Peninsula Plaza at 111 North Bridge Road for sale via tender on 14 July 2022.
The four units – which have a combined strata floor area of 16,038 sq ft - are launched for sale collectively with a guide price of $60 million. They are currently fully leased to long-term tenants who are operating their F&B and public entertainment businesses from the four strata units.
Located in Singapore’s dynamic city centre and just 3-minutes’ walk from the City Hall MRT interchange station, Peninsula Plaza - an iconic development that was built in 1979 – is popular among both locals and tourists, with its plethora of shops and eateries. It is also strategically located within an exciting retail area that features the Funan shopping mall, Capitol Piazza, and Raffles City. With the reopening of borders and easing of most Covid-19 restrictions, the retail and F&B environment is set to improve further amid a return of tourist demand.
The portfolio’s guide price of $60 million works out to $3,750 per square foot (psf) based on the strata area. The four commercial units have a 999-year lease tenure commencing from October 1829.
Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “We expect strong interest in this portfolio of four commercial units as it is rare to find sizable adjoining strata shop space in the city centre, and Peninsula Plaza is also readily accessible via public transport. In addition, the four units have a highly coveted 999-year leasehold tenure and strong leasing commitment with the existing tenants – garnering an attractive gross rental yield of 3% for the owner. We believe the portfolio will continue to enjoy good leasing prospects in the future as the space is sought after by tenants in the F&B and public entertainment trade. This is an ideal opportunity for investors who are looking to enjoy passive rental income and continued capital appreciation.”
Prices of strata commercial space in the central areas are expected to remain firm owing to their limited supply. Recently, an entire floor at Suntec City Tower 2 was transacted for $38.8 million or a record-breaking $3,300 psf on a 99-year leasehold tenure – it is the highest psf price achieved for the office tower.
Ms Goh added, “As the four strata units are zoned for commercial use, both Singaporeans and foreigners are able to acquire them, with no additional buyer’s stamp duty (ABSD) nor seller’s stamp duty payable. This would interest investors who may wish to pivot to commercial assets following the increase in ABSD rates on residential properties from December 2021. Furthermore, Singapore remains an attractive investment destination for foreigners amidst the strong Singdollar currency appreciation, its stable political environment, and relatively healthy economic outlook.”
The tender will close on 18 August 2022, Thursday at 2 pm.
July 15, 2022