[UPDATE] Investor consortium lists portfolio of 11 HDB shops and a retail unit at Peninsula Plaza for sale at $52.2 mil

/ EdgeProp Singapore |
A 2,207 sq ft, 2-storey, corner HDB shophouse at Ang Mo Kio Avenue 10 is for sale at $3.78 million ($1,713 psf) [Photo: CBRE]
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SINGAPORE (EDGEPROP) - On the market is a portfolio of 11 HDB shops and a 999-year leasehold shop unit at Peninsula Plaza for $52.185 million, with CBRE as the exclusive marketing agency. The shop units have a total strata area of 17,934 sq ft, and based on the asking price, it averages out to $2,910 psf across the portfolio.
Collectively known as “The Heartland Collection”, the HDB shops are located in mature residential estates across the island, such as Ang Mo Kio, Clementi, Hougang, Tampines, Toa Payoh and Yishun, says Clemence Lee, CBRE executive director of capital markets, Singapore.
Many are corner HDB shops with prominent frontages, he adds. Others are two-storey HDB shophouses near road junctions, coffee shops, post offices, grocery stores, markets or food centres. "They enjoy prominent frontage and high footfalls," says Lee.
A 1,518 sq ft, 2-storey HDB shophouse at Ang Mo Kio Avenue 1 for sale at $2.205 million ($1,453 psf) [Photo: CBRE]
On a psf basis, the most expensive shop is the 1,033 sq ft unit at Toa Payoh Lorong 6 at $11,791 psf. It is right in the heart of Toa Payoh Central, within a short walk of the Toa Payoh MRT station and bus interchange.
The Toa Payoh shop is even more expensive than the Peninsula Plaza on North Bridge Road in the Downtown Core. The 538 sq ft Peninsula Plaza unit has a price tag of $11,320 psf.
Convenience store 7-Eleven (part of DFI Retail Group, formerly Dairy Farm International) is the tenant of seven of the 11 HDB shops on long-term leases. The leases are on a 5+5+5 year lease, with the second five-year term taking effect from August.
In the portfolio of 11 HDB shops, the 1,033 sq ft HDB shop at Toa Payoh Lorong 6 is the priciest on a psf basis $11,791 psf (Photo: CBRE)
A variety of other tenants have leased the remaining four HDB shops. An incoming owner-occupier can utilise the shops upon the expiry of the leases, says Lee.
Separately, the 999-year leasehold strata retail shop at Peninsula Plaza faces St Andrew's Cathedral. It is accessible from the street level and adjacent to Capitol, linked underground to the City Hall MRT interchange station and neighbouring malls Raffles City, Funan and The Adelphi.
The shops are available for sale individually or collectively as a portfolio by an expression of interest (EOI) exercise that closes on Wednesday, May 10, at 3 pm.
A 1,516 sq ft, corner shophouse with dual frontage at Jurong West is on the market for $5.67 million ($3,735 psf) [Photo: CBRE]
Individuals will find the shops tenanted by 7-Eleven appealing as such units are only sometimes available for sale, notes Lee.
It is also rare for such a sizeable collection of HDB shops to come on the market. The last time it happened was in September 2018, when a stable of nine HDB shops was launched for sale by CBRE too. The price tag for the portfolio of nine HDB shops was $34 million or $2,548 psf based on the strata area of 13,343 sq ft.
According to Lee, one of the reasons these properties seldom surface on the market as there are only 8,500 such units across Singapore. As HDB discontinued the sale of such HDB shops in 1998, these units are only available via the resale market. "Supply for these properties is extremely limited, almost akin to conservation shophouses," he says.
The 538 sq ft Peninsula Plaza unit has a price tag of $6.09 million ($11,320 psf) [Photo: Samuel Isaac Chua/EdgeProp Singapore)
Singapore has only 6,500 conservation shophouses, built between the early-1800s and mid-1900s.
HDB shops are open to locals and foreigners like other private commercial properties. However, for the two-storey HDB shophouses that come with living quarters on the upper floor, additional buyer's stamp duty (ABSD) is payable for the residential portion. (Find HDB flats for rent or sale with our Singapore HDB directory)
Foreigners must therefore pay a 30% ABSD for the residential part. "HDB shops, therefore, appeal more to local investors familiar with the suburban locations," says Lee. With more people working from home, even retail shops in HDB town centres are bustling across the week, not just on weekends, he adds.
Lee sees the Heartland Collection as offering investors "a rare opportunity to acquire a series of prime heartland HDB shophouses that would otherwise be challenging to accumulate".
HDB shops portfolio - EDGEPROP SINGAPORE

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