The shophouses at 155 Kitchener Road (middle) are currently fully tenanted with a restaurant on the ground floor, while the upper floors are occupied by a fitness center and offices. (Photo: CBRE)
A pair of adjoining two-storey freehold conservation shophouses at 155 Kitchener Road is up for sale via an expression of interest (EOI) exercise, with an indicative price of $28 million for both properties.
The shophouses sit on a freehold plot totalling 2,713 sq ft and have an estimated built-up area of 8,175 sq ft. Based on the built-up area, the indicative price translates to $3,425 psf.
It also comes with a six-storey rear extension and has prominent main road frontage of around 11m along Kitchener Road.
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According to CBRE, the exclusive marketing agent for the properties, it is zoned for commercial use, and has a gross plot ratio of 3.0. The assets are also currently fully tenanted — a restaurant on the ground floor and a fitness centre and offices on the upper floors.
“Beyond its sought-after freehold tenure, the asset also boasts permanent F&B approval on the ground floor and benefits from versatile floor plates that can be well-suited for a variety of uses,” says Clemence Lee, executive director for capital markets at CBRE Singapore.
This includes converting the upper floors units into a student hostel or for residential use, which is subject to relevant authorities’ approval.
Situated in the Jalan Besar Conservation Area, the shophouses are located in between Farrer Park MRT Station on the North-East Line and Jalan Besar MRT Station on the Downtown Line. Nearby shopping centres include City Square Mall, Centrium Square, Mustafa Centre and the newly-completed Piccadilly Galleria.
Lee posits tenants will also benefit from footfall following the completion of over 3,000 residential units across five major BTO developments in the vicinity this year, such as Farrer Park Fields and McNair Heights.
Commercial transaction caveats lodged with URA show the most recent deal in the area occurred at 137 Kitchener Road. The shophouse with a gross floor area of 4,064 sq ft was sold for $8.19 million, or $2,015 psf, in November last year.
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Lee expects strong interest from boutique property funds and family offices who recognise the scarcity of prime shophouses, especially as this asset is “viewed as defensive additions to sophisticated portfolios”.
The EOI exercise will close on June 18, at 3pm.