East Coast Rd shophouse used by Boon Tong Kee up for sale

A freehold three-storey conservation shophouse used by the popular Boon Tong Kee chicken rice restaurant is up for sale for $9.5 million.

The price works out to about $2,369 per sq ft based on the total built-up area of 4,010 sq ft, said marketing agent CBRE yesterday.

The shophouse at 199 East Coast Road is on a 1,795 sq ft site zoned for commercial use with a plot ratio of three.

Its maximum allowable gross floor area is about 5,385 sq ft, subject to approval, said CBRE.

The shophouse is fully tenanted, with the ground and third floors leased to Boon Tong Kee restaurant, which has been operating at the premises for more than 15 years.

This will provide a buyer with immediate rental income, CBRE said.

Once the existing leases expire, the buyer could maximise the plot ratio by building a rear extension to increase the floor area by 34 per cent, it added.

There will be no additional buyer's stamp duty or seller's stamp duty imposed on local or foreign buyers.

The upcoming Marine Parade MRT station is close by and set to open by 2023, while refurbishment work at the nearby I12 Katong mall is due to be completed by next year.

Other commercial developments near the property include Katong Point and Parkway Parade malls. There is also a large residential catchment from the Marine Parade housing estate.

CBRE senior director of capital markets Clemence Lee said there has been an increase in interest for shophouses in the East Coast area recently, perhaps because food and beverage outlets and stores are doing well with more people frequenting the neighbourhood as they work from home.

"The area is expected to become even more dynamic upon the completion of rejuvenation activities," he noted.

Similar properties sold in the vicinity include 139 East Coast Road, which was transacted last month at $6.6 million, added Mr Lee. A row of three shophouses at 101-105 East Coast Road changed hands recently at $14 million.

The sale of 199 East Coast Road will be conducted via an expression of interest exercise, which will close at 3pm on Nov 12.

THE BUSINESS TIMES

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A version of this article appeared in the print edition of The Straits Times on October 08, 2020, with the headline East Coast Rd shophouse used by Boon Tong Kee up for sale. Subscribe