Conservation shophouse and eight townhouses up for sale

The shophouse in the Telok Ayer Conservation Area has permanent F&B approvals granted for both floors, and houses the Michelin-starred restaurant Cheek by Jowl.
The shophouse in the Telok Ayer Conservation Area has permanent F&B approvals granted for both floors, and houses the Michelin-starred restaurant Cheek by Jowl.PHOTO: JLL

CBD property has $17m guide price while Kovan homes asking $28m in collective sale

A conservation shophouse with an attic in Boon Tat Street has been put up for sale via an expression of interest exercise with price expectations of around $17 million.

The shophouse in the Telok Ayer Conservation Area has permanent food and beverage (F&B) approvals granted for both floors, and houses the Michelin-starred restaurant Cheek by Jowl.

The 999-year leasehold site has a land area of 1,759 sq ft and the indicative guide price is in the region of $17 million, which works out to a unit land rate of about $4,388 per sq ft (psf) on gross floor area.

It is a short walk from Telok Ayer and Raffles Place MRT stations in the central business district (CBD) and accessible via the Marina Coastal and Central expressways.

The property is a a well-located asset with strong tenant covenant and rental income, said Mr Clemence Lee, associate director of capital markets at marketing agent JLL. "Moreover, shophouses with F&B approval on two floors are rare as the authorities are becoming increasingly selective in granting such approvals," he added.

Recent transactions for shophouses in the Telok Ayer Conservation Area include 77 Amoy Street, which sold for $25 million (about $3,500 psf) in March, and 75 Amoy Street, transacted at $18 million (about $3,900 psf) in February.

Foreigners are eligible to buy the property at 21 Boon Tat Street as it is on land zoned for commercial use. No additional buyer's stamp duty or seller's stamp duty will apply to the purchase.

The expression of interest exercise closes on Sept 20.

Separately, Cheng Hoe House, a group of eight freehold townhouses, was launched for collective sale yesterday for $28 million, marketer Teakhwa Real Estate said.

The reserve price reflects a land rate of $1,082.9 per sq ft per plot ratio (psf ppr), including a development charge of about $6.1 million.

Teakhwa Real Estate said the land price would be reduced to $1,052.5 psf if the 10 per cent bonus balcony area is included.

The 22,484.9 sq ft freehold residential site has a plot ratio of 1.4 and allowable height of up to five storeys. Its potential gross floor area could translate into 29 apartments with an average size of 1,076 sq ft per unit for a new development.

The property at 10 Kovan Road is surrounded by mostly landed and low-rise housing and is within three minutes' walk of Kovan MRT station as well as Heartland Mall and Kovan City. Rosyth School and Paya Lebar Methodist Primary School are about two kilometres away.

"The potential freehold residential development will appeal very much to owner-occupiers and first-time buyers with parents living close by the estate," said Teakhwa Real Estate managing director Sieow Teak Hwa.

The tender closes on Sept 19.

A version of this article appeared in the print edition of The Straits Times on August 21, 2018, with the headline 'Conservation shophouse and eight townhouses up for sale'. Print Edition | Subscribe