Special Feature
Stirring up an appetite for investments in coffee shops
By Tommy Ng
/ Brought to you by PropNex |
Coffee shops are a staple and unique culture in Singapore. Regardless of age, social economy status or race, coffee shops are commonly visited by all in Singapore for their diverse range of economical food and freshly brewed Nanyang coffee.
The popularity of coffee shops among Singaporeans have sparked an interest among investors to enter the F&B space. And with the lack of coffee shops in Singapore, along with its low maintenance cost, analysts have deemed coffee shops an attractive investment option.
With that, there are three coffee shop properties in Singapore that are up for sale that can potentially bring in hungry patrons and good yields. The beauty of these properties is that they do not require additional buyer stamp duty (ABSD) and are open to foreign investors to purchase.
1. 15 Crane Road
This currently vacant space located on 15 Crane Road in the quaint Joo Chiat area of Singapore is ready for a new owner and tenant. Previously also a coffees shop, the current space is already licensed for F&B and has existing grease trap and exhaust installed, making it ready for a new tenant to immediately move in and operate.
This property is located along a short row of shophouses and is within a residential enclave whereby it is surrounded landed properties, private condominiums and HDB estates. There is also a HDB carpark located nearby, making the coffee shop more accessible for those who are visiting the area.
As this space is currently vacant, the new owner and tenant of this space can let their imagination run wild. The space has much potential. While a regular coffee shop will still attract a steady stream of consumers, there is also potential for this space to be turned into a boutique café, similar to several others within the area.
The property is a single strata corner unit and located on the ground floor. It spans over 2,300 sq ft and is a freehold property. Several properties within this area also boast en bloc potential.
Price: $7.2 million
EOI: Nov 18, 2022
2. 200 Jalan Sultan
Located at the first floor of the Textile Centre Singapore, this space is currently tenanted by a coffee shop that sees a steady stream of hungry customers, especially during the lunch period. With limited F&B choices inside Textile Centre, workers from the offices and retail shops in the property are bound to flock to this space for their F&B needs.
Furthermore, with its proximity to Kampong Glam, hotels, schools and hospitals, Textile Centre is an accessible space for those within the Lavender area.
Currently, the 3,529 sq ft unit is being rented out at $23,000 a month. The owners are selling this unit for $11 million, representing some $3,117 per sq ft. Comparing it to the nearby properties in Kampung Glam that have been transacting at about $4,000 per sq ft, this is considered a deal.
Textile Centre was completed in 1970 and since then, it has been a 99 years leasehold apartment property. Textile Centre is in Singapore’s prime District 7 in the Core Central Region and along the Ophir-Rochor Corridor, which the government has identified as a new growth area. There is also an en bloc opportunity for this, as the owners of Textile Centre has previously attempted a collective sale in early 2019.
Price: $11 million
EOI: Nov 18, 2022
3. Ang Mo Kio Street 32
The industrial areas of Singapore have been booming thanks to the improving manufacturing sector. While the industrial property areas of Singapore see higher occupancy and larger crowd, there needs to be more F&B spaces to feed them.
A unit with in-principle approval for coffeeshop usage within LINK@AMK is now up for sale. Spanning over 2,153 sq ft, the unit is going up for $1.85 million. The unit is currently being rented out at about $5,800 a month.
While the purchase of this unit can be sold with the current tenancy, the owners have mentioned that there is a good opportunity to convert this property into a canteen or a cafe, as the unit has obtained proper F&B license and necessary approvals. Currently, the space is being used for light industrial purposes and not properly utilising the F&B potential that it has.
Apart from the industrial offices and manufacturing facilities nearby, there are also several HDB residential properties located around the vicinity, while LINK@AMK is also within walking distance to Yio Chu Kang MRT. This makes the space easily accessible despite being within an industrial area.
Price: $1.85 million
EOI: Nov 30, 2022
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