SINGAPORE - A pair of adjoining commercial shophouses, located at the heart of Chinatown, are up for sale.
The shophouses, at 205 and 207 New Bridge Road, enjoy visibility and exposure along New Bridge Road and has a return frontage onto Pagoda Street, the main pedestrian street thoroughfare of Chinatown, sales agent Cushman & Wakefield said on Monday Aug 31).
The three and a half floors shophouses are zoned "commercial" under the Chinatown (Kreta Ayer) Historic District, with a combined land area of 1,728 square feet and a total gross floor area of approximately 5,800 sq ft.
The ground floor is a retail shop currently tenanted to Fragrance Foodstuff which sells traditional Chinese snacks and 'bak kwa' (barbequed meat). The upper floors have been approved for food and beverage operations and are accessible via a staircase and an internal lift at Pagoda Street.
Both units have 79 years left on their 99-year leasehold tenure.
Previously, a shophouse of 2,012.8 sq ft in the same area was sold for $20 million in February this year.
Based on the asking price of $28 million, the properties are expected to reap a potential gross yield of some 3.5 per cent, said Cushman & Wakefield.
According to Ms Christina Sim, its director of capital markets, the sale represents "a very limited opportunity to own a slice of Singapore's heritage".
She expects interest to come from a number of the traditional homegrown house brands within Chinatown and investor-occupiers "who require tremendous visibility for their business".
She said the company has already been approached by a few shophouse investors.
"Shophouses like these are akin to trophy assets and family heirlooms," said Ms Sim. "They rarely come onto the market and when they do, they are always snapped up quickly by astute investors."
Expression of interest in the properties closes on Oct 8.