32 shophouses in Lavender St, Serangoon Rd for sale at $138m

The group of freehold shophouses - called The Lavender Collection - is up for sale by public tender at a guide price of $138 million. The shophouses occupy about 49,200 sq ft, with a gross floor area of about 80,000 sq ft.
The group of freehold shophouses - called The Lavender Collection - is up for sale by public tender at a guide price of $138 million. The shophouses occupy about 49,200 sq ft, with a gross floor area of about 80,000 sq ft.PHOTO: JLL

A group of 32 freehold shophouses in Lavender Street and Serangoon Road is up for sale by public tender at a guide price of $138 million.

This translates to $1,736 per square foot (psf) on the estimated gross floor area (GFA), or about $934 psf per plot ratio, assuming no development charge, said marketing agent JLL yesterday.

The shophouses - called The Lavender Collection - occupy about 49,200 sq ft and have a GFA of about 80,000 sq ft.

The site is zoned "commercial" with a gross plot ratio of 3.0.

No additional buyer's stamp duty or seller's stamp duty will be imposed on the purchase, marketing agent JLL announced yesterday.

Mr Clemence Lee, its senior director of capital markets, said: "With prices of CBD (central business district) shophouses rising over the last two years, we are noticing that investors are starting to divert attention to city fringe shophouses as prices have yet to catch up and rental yields are comparatively higher.

"We expect strong interest from developers, real estate funds, family offices and local companies during the public tender exercise."

Mr Lee added that the new owner could build a six-storey rear extension at the back of the shophouses to double the GFA to 147,732 sq ft.

The shophouses could then be sold individually or held for long-term income.

He noted: "An inquiry on the development baseline record for one of the shophouses was submitted.

"It found that the development baseline is high, reflecting a plot ratio of 3.0. Assuming the same outcome for all 32 shophouses, no development charge is payable should prospective purchasers wish to maximise the portfolio's GFA."

The Lavender Collection is within walking distance of Boon Keng, Bendemeer and Farrer Park MRT stations and a 10-minute drive from the central business district and Orchard Road.

Major commercial developments nearby include CT Hub, Connexion and City Square Mall.

The area is also undergoing rejuvenation with several new developments under way, including Centrium Square, a 19-storey commercial development comprising retail, medical suites and office space.

A version of this article appeared in the print edition of The Straits Times on September 05, 2019, with the headline '32 shophouses in Lavender St, Serangoon Rd for sale at $138m'. Print Edition | Subscribe