SINGAPORE (EDGEPROP) - On a recent Tuesday, hipster cafe Bearded Bella at 8 Craig Road, which serves coffee, acai bowls, brunch and desserts, is bustling. Even the al fresco dining area in the courtyard was almost full. Next door, the F&B outlets on the ground floor of the shophouses at 9 and 10 Craig Road, namely European restaurant Coucou and Sofi Cafe Pizza, were equally busy.
Three months after the Covid-19 “circuit breaker” ended, yoga studios, restaurants, cafés and bars in the Tanjong Pagar conservation area are seeing crowds return. The three shophouses at 8, 9 and 10 Craig Road are owned by Hong Kong-based, family-owned hospitality business Harilela Group, founded in 1959 by the eponymous Hong Kong-Indian businessman, hotelier and philanthropist, Hari Naroomal Harilela. According to the Integrated Land Information Service (INLIS) records, Harilela Group purchased the three shophouses in 1992.
Besides the properties on Craig Road, Harilela Group also owns the 319-room Holiday Inn Singapore Orchard City Centre, formerly known as Holiday Inn Park View, which opened its doors in 1985. Another hotel it owns in Singapore is the Ambassador Transit Hotel at the departure transit lounge of Changi Airport. Besides Singapore, the group has an international portfolio of some 15 hotels in Bangkok, Hong Kong, London, Macau and Pattaya.
Harilela is now looking to sell all three shophouses on Craig Road as a portfolio at a price tag of $36 million, with Savills Singapore as the exclusive marketing agency. Over the past 28 years, the group has received unsolicited offers for the shophouses, says Yap Hui Yee, director of investment sales and capital markets at Savills Singapore. Hence, the group has launched the properties for sale by expression of interest which will close on Oct 15, 3pm.
According to Yap, there is growing interest from overseas buyers in Singapore commercial properties. These three shophouses sit within the Tanjong Pagar conservation area in the CBD. They have a combined land area of 5,948 sq ft and built-up area of 12,260 sq ft. The $36 million price translates to $2,936 psf based on built-up area. The shophouses have a 99-year lease from 1988, which means they have a remaining lease of 68 years.
Such assets are sought after as purchasers can be creative in restoring the internal spaces, with three shophouses yielding larger floor-plates, adds Yap. Located at the junction of Craig Road and Duxton Road, the shophouses enjoy dual frontage. The wall along Duxton Road may be decorated with an art mural, notes Yap.
The area is very vibrant, with many F&B outlets, hotels, office buildings and co-working spaces in the area. There are also residences in the area, for instance Craig Place, a 58-unit boutique condominium development, Pinnacle at Duxton, with seven 50-storey towers containing 1,848 units as well as private condominiums in the Tanjong Pagar area, from luxury development Wallich Residence at Guoco Tower to the 646-unit Icon, the 360-unit Suites at Anson and the 280-unit Altez.
Rejuvenation is also taking place in the CBD area, with the upcoming mixed-use development at the former Chinatown Plaza at the corner of Neil Road and Craig Road, the redevelopment of Realty Centre, Fuji Xerox Tower and AXA Tower.
In terms of accessibility, the shophouses on Craig Road are within a five-minute walk to Tanjong Pagar MRT station on the East-West Line and the upcoming Maxwell MRT Station on the Thomson-East Coast Line. It is also a seven-minute walk to Outram Park MRT Interchange Station.
The shophouses on Craig Road are currently fully tenanted. Zoned for commercial use, the ground floor units have been approved for F&B use and leased to two cafés and a restaurant. The upper floors are currently leased as office space to a corporate management firm, cyber security firm and global consumer research agency. The upper floors can be used for offices, medical suites or even childcare centres, subject to approval by authorities. The existing monthly rental income is about $64,000, with varying expiry dates on the leases.
The existing office spaces on the upper floors have regular layout and are column-free, with en suite washrooms and 24-hour security access. The third floor units have high ceilings. The shophouses come with full-height French windows, airwell and private courtyard. Hence, the units are well lit.
The most recent shophouse transaction in the Tanjong Pagar Conservation Area was for a two-storey shophouse at 50 Tanjong Pagar Road. It has a built-up area of 2,152 sq ft on 1,098 sq ft of 99-year leasehold land. The property changed hands for $4.5 million, or $2,091 psf on built-up area, on Aug 17.
Earlier last month, a two-storey shophouse at 61 Neil Road changed hands for $5.65 million ($1,936 psf). The shophouse sits on a 99-year leasehold site of 1,475 sq ft, with a built-up area of 2,919 sq ft.
The rarity of conservation shophouses, with just 6,500 to 7,000 units in Singapore, makes them a coveted asset, especially those in the CBD. Those in the CBD and zoned for commercial use are especially coveted as they are open to foreign ownership and are not subjected to additional buyer’s
stamp duty.
For price trends, recent transactions, other project info, check out these projects' research page: Craig Place, Tanjong Pagar area, Wallich Residence, Altez, Realty Centre, Fuji Xerox Tower, AXA Tower
Check out the latest listings near: Duxton Road, Maxwell MRT Station, Tanjong Pagar MRT station
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