SINGAPORE - Five adjoining freehold prime shophouses situated in the Kampong Glam conservation area have been put up for sale via an expression of interest exercise, at an indicative price of $23.8 million for the entire portfolio.
This works out to $2,970 per square foot (sq ft), sole marketing agent CBRE said on Monday (June 10).
As the property is also zoned as full "commercial" under the 2019 Draft Master Plan, there will not be any additional buyer's stamp duty or seller's stamp duty, with the opportunity being open to both local and foreign buyers.
The shophouses are located at 17, 19, 21, 23 and 25 Baghdad Street, with individual land titles all held by a single owner. The property occupies a combined land area of around 4,892 sq ft, with a prominent 60m triple-road frontage onto Baghdad Street, Bussorah Street and one side lane.
The shophouses have areas ranging from 1,375 sq ft to 2,416 sq ft, contributing to a total floor area of about 8,013 sq ft. The shophouses are also fully tenanted with existing food and beverage approvals, which CBRE said is "rare in today's market".
CBRE associate director of capital markets Yap Hui Yee said that CBRE is optimistic that the shophouses will garner keen interest from savvy investors with a medium- to long-term investment horizon. This is especially given their strategic location and strong property attributes.
These investors are seeking to benefit from future rental upside and capital appreciation, in addition to enjoying immediate rental income. Moreover, the five individual land titles will also provide the additional option of keeping some units or selling them independently in the future.
"Kampong Glam is within the Ophir-Rochor Corridor that is fast becoming the next hotspot for live-work-play offerings, attracting strong interest from buyers," Ms Yap said.
Strong interest is also expected from owner-occupiers looking to locate their business in a boutique building with naming rights.
The adjoining shophouses will provide extra flexibility in space configuration for the successful buyer to suit their own-use requirements or to cater to tenants' needs.
Some possible uses of the space include backpacker hostel, educational or enrichment school, healthcare/fitness centre, retail outlets, F&B establishments, creative outfits or showrooms, Ms Yap added.
The expression of interest exercise for the shophouses closes on July 16 at 3pm.