Hiap Hoe to divest strata shops in Parklane

Mainboard-listed developer Hiap Hoe Ltd is selling 39 strata-titled shops by expression of interest (EOI), as part of its plan to divest its non-core assets. The largest of the units includes a single portfolio of 33 strata units located in the basement of Parklane Shopping Mall (above) at 35 Selegie Road. The units are being offered for sale to a single buyer.

According to Karamjit Singh, head of investments and residential at JLL, who is managing the EOI exercise, the basement units have a combined strata floor area of 25,317 sq ft and represent more than 94% of the total strata floor area in the basement. The units are fully occupied by a variety of tenants, including gaming and entertainment centres, a dance studio, a musical-instrument retailer and fast-food outlet McDonald’s.

The vendors expect offers of about $55.6 million, or $2,200 psf, notes JLL. Last year, a unit in the basement of Parklane Shopping Mall — which did not belong to Hiap Hoe — changed hands at $2,192 psf. “The passing yield, based on the indicative price of $55.6 million, is about 3.5% per annum, with potential to rise above 4% with increments in rents,” Singh says. The EOI exercise for the Parklane basement units closes on Nov 4.

Also on the market are two adjoining strata-titled nits on the fourth level of Parklane Shopping Mall. They are currently occupied by a karaoke lounge and nightclub. The two units have a combined floor area of 3,660 sq ft and an indicative price of $1,300 psf

Besides the units at Parklane Shopping Mall, Hiap Hoe also owns two adjoining units in the basement of Bukit Timah Plaza with a combined strata floor area of 1,206 sq ft and a first-floor strata shop unit of 4,930 sq ft. In Balestier Point, a freehold shop unit of 5,608 sq ft on the second level, currently occupied by a karaoke lounge and nightclub, is on the market. The EOI for these units closes on Oct 29.