SINGAPORE - Fifty-nine of a total 88 shop units in Ming Arcade, a freehold strata-titled commercial building near the junction of Orchard Road and Cuscaden Road, are collectively up for sale, marketing agent CBRE said on Monday (Oct 8).
The portfolio comes with a guide price of $51 million or approximately $4,470 per square foot.
The sale is via an expression of interest exercise that closes on Nov 21 at 3pm.
Completed in the 1980s, Ming Arcade is a seven-storey building with three basement storeys. It is in the vicinity of the Orchard Road shopping belt and near a number of private medical facilities including the Camden and Gleneagles medical centres.
The 59 shop units for sale make up nearly a third of the development's total share value. The units span across all floors and have sizes that range from 140 to 334 sq ft each. Their combined strata floor area is approximately 11,410 sq ft.
CBRE said the area is undergoing rejuvenation anchored by The Singapore EDITION, a luxury boutique hotel redeveloped on the former Boulevard Hotel site, the future Artyzen Hotel sited behind Tanglin Shopping Centre, the redevelopment of Park House as well as an upcoming luxury residential project developed by a consortium including SC Global.
Said Jeremy Lake, managing director, Capital Markets, CBRE: "The portfolio presents a rare opportunity for investors to gain a foothold in the prime Orchard Road vicinity. At the guide price ...we expect strong interest as the affordable quantum makes it attractive to small and mid-sized developers as well as family offices, real estate funds and high net worth individuals who are seeking capital appreciation in the medium to long term.
He added that as the portfolio is zoned commercial, it is not subject to additional buyer's stamp duty (ABSD) and seller's stamp duty (SSD), and is eligible for purchase by local and foreign buyers."
Redevelopment options include medical suites, office and retail developments as well as hotel and mixed commercial and residential uses, subject to approval and payment of a development charge, where applicable, said CBRE. Recent strata medical suites at Gleneagles Medical Centre were sold in the range of $9,300 psf to $10,000 psf, it added.
Ming Arcade stands on a 12,132 sq ft site with a gross plot ratio of 4.2 and a maximum height of 20 storeys. Up to the approved gross floor area (GFA) of 55,046 sq ft for commercial use, no development charge is payable.