Freehold commercial units at Chenn Leonn Building in Kampong Glam hit the market at $2,985 psf
The exterior of the freehold Chenn Leonn Building, which occupies 1, 3, 5 and 7 Aliwal Street, just off Beach Road in District 7 (Photo: Samuel Isaac Chua./EdgeProp Singapore)
One of the most interesting streets in the Kampong Glam Conservation Area off Beach Road is Aliwal Street, where gentrification has taken hold. At one end stands the Madrasah Alsagoff Al-Arabiah, an Islamic religious school established in 1912, with the Aliwal Arts Centre occupying an Art Deco building that once housed Chong Cheng and Chong Pun Schools.
The neighbourhood is eclectic, dotted with commercial, cultural and entertainment establishments. Heritage shophouses have been converted into hospitality assets such as Hotel 81 Heritage, Dream Chaser boutique capsule hotel and Weave Suites Midtown serviced apartments.
Its nightlife scene is vibrant, with clubs such as Club Forgiven, Worldmusic Boss and the 188 Myanmar KTV Lounge. Visitors can also find various F&B brands there, including Ya Kun Kaya Toast and Udders Ice Cream.
The landmark Aliwal Arts Centre was the former Chong Cheng and Chong Pun schools (All photos by Samuel Isaac Chua/EdgeProp Singapore)
The 188 Myanmar KTV Lounge occupies the first floor of Chenn Leonn Building, a freehold, three-storey commercial block spanning 1, 3, 5 and 7 Aliwal Street.
Developed by Summit Realty and completed in 1994, the building comprises 12 strata-titled units — four on the first level, zoned for retail use, and eight on the upper floors, designated for office use.
According to EdgeProp LandLens, the first level recently obtained written permission to continue operating as a nightclub or KTV lounge. These units have had their applications renewed since receiving approval for change of use from retail to karaoke or nightclub use since 1996.
Chenn Leonn Building is located off Beach Road
Not your typical office tenants
“Even the upper-floor office units here aren’t occupied by typical business users,” says Sammi Lim, founder and executive director of Brilliance Capital, the exclusive marketing agent for two units at Chenn Leonn Building, which are offered for sale by private treaty.
The units, sized at about 1,636 sq ft and 1,668 sq ft, are both on the third level. One unit is leased to Bizzaro Market, a vinyl record shop, while the other is tenanted to Extreme Fitness, a personal training and weight-loss studio.
One of the units for sale at Chenn Leonn Building is the third-floor unit that is currently tenanted to Bizzaro Market, a vinyl record shop
Both units are on the market with their existing tenancies, at asking prices of $2,985 psf, totalling $4.9 million and $4.98 million, respectively. They may be sold individually or collectively.
Lim notes that about 75% of the building’s owners are investors, with the remaining 25% being owner-occupiers. One such occupier is Tan Insurance Brokers, which owns two units on the second floor of 3 and 5 Aliwal Street. It recently bought the adjacent 1,615 sq ft unit at 1 Aliwal Street for $4.398 million ($2,732 psf) in a deal brokered by Lim. This brings the firm’s holdings to three units on that level. However, no caveat has been lodged for the latest purchase.
Based on caveats lodged, Tan Insurance Brokers acquired its second unit — the 1,658 sq ft second-floor unit at 5 Aliwal Street — for $2.2 million ($1,327 psf) in November 2021.
Entrance to the third-floor unit leased to Extreme Fitness gym
Flexible use and 24/7 operation
A key advantage of Chenn Leonn Building, Lim highlights, is the flexibility in approved uses. For instance, the third-floor unit currently tenanted by Extreme Fitness has been approved for use as a fitness centre since 2017.
“The strata units may be configured as offices, fitness studios, medical suites, lifestyle or enrichment centres — and they can even operate 24/7. That’s a major differentiator from typical strata offices,” says Lim.
The building also comes with a private carpark — a rarity among boutique developments in the Downtown area. “In a market where freehold strata units below $5 million are increasingly scarce, these offerings along Aliwal Street stand out as both accessible and investment-worthy,” Lim adds.
Chenn Leonn Building was developed by Summit Realty and completed in 1994, and offers parking space within the building, which is a rarity within the city area
Nearby, the 99-year leasehold mixed-use project City Gate has seen recent activity, with three retail units changing hands between July and August. Prices ranged from $1 million ($2,161 psf) for a 463 sq ft basement unit to $1.09 million ($2,665 psf) for a 409 sq ft first-floor unit.
At The Golden Mile — the conservation and adaptive reuse of the former Golden Mile Complex by Far East Organization and Perennial Holdings — three 99-year leasehold, strata commercial units were sold earlier this year. Prices ranged from $3.15 million ($3,484 psf) for a 904 sq ft unit on the third level to $4.76 million ($3,683 psf) for a 1,292 sq ft unit on the fourth level.
The 99-year leasehold mixed-use project City Gate has seen three retail units changing hands between July and August at prices ranging from $1 million ($2,161 psf) for a 463 sq ft basement unit to $1.09 million ($2,665 psf) for a 409 sq ft first-floor unit.
Future capital upside
Being a freehold property in the Core Central Region’s District 7, Chenn Leonn Building offers prospective capital appreciation, especially as the Aliwal Street precinct continues to gentrify and the supply of freehold commercial units tightens.
Lim adds that the strata owners had previously commissioned a market study to assess the building’s collective sale potential.
“It does have en bloc potential,” she says. “However, the owners are not ready to embark on a collective sale exercise at this point.”
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