SINGAPORE - A two-storey conservation shophouse in the popular food enclave of Tanjong Katong could soon change hands.

The property at 362/A Tanjong Katong Road was put up for sale by tender on Monday with an indicative price of $8.38 million.

This works out to $1,379 per sq ft of gross floor area for the building, which sits on a plot of about 2,025 sq ft and has a gross plot ratio of 3.0.

The ground floor of the building is occupied by restaurant bar Bar Bar Black Sheep and the upper floor is made up of boutique studio units.

The site is at the junction of Tanjong Katong Road and Wilkinson Road and is zoned for residential use, with commercial space on the ground floor.

"With the existing F&B tenant in place, a buyer can immediately reap strong rental returns in excess of 4 per cent from the steady cash flow that is currently in place," said Mr Galven Tan, director of investment properties at CBRE which is marketing the property.

"In the long term, there are various development options available to the buyer," he said, adding that the owner of the building had received "several unsolicited offers".

The tender closes on July 25.