Four shophouses up for auction in Kampong Glam

20130119-st-4-shophouses-auction-kampong-glam-pic FOUR conservation shophouses in North Bridge Road will go under the hammer next week.

The shophouses, which are in a commercial zone within the historic Kampong Glam district, are among the few freehold commercial properties in the area, DTZ Research said in a report this week.

The owners, a group of private investors, are selling the four shophouses as a single entity by auction on Wednesday, said Mr Shaun Poh, DTZ's head of investment advisory services and auction.

This is because the four properties sit on two titles, making it difficult to sell separately, added Mr Poh.

He said: "The owners want to divest these properties to re-invest capital."

DTZ estimates the indicative value of the shophouses to be $15.5 million and said they would be sold with existing tenancies. Currently, an apparel shop, wellness centre, Internet cafe and photo studio are situated there.

Mr Poh said: "These shophouses are not affected by seller's stamp duty, additional buyer's stamp study and loan quantum restrictions in the government cooling measures.

"It is therefore a great alternative income-producing investment."

Sitting on a 5,765 sq ft site, the properties have a total floor area of about 9,600 sq ft and are surrounded by mixed-use developments like Bugis Junction, Bugis Plus and Key Point.

They are also near the upcoming Downtown Line and the site of the upcoming five-star hotel at the DUO project in Ophir Road.

The five-star hotel, which is expected to be completed in the second quarter of 2017, is being built by M+S, a 60-40 joint venture between Malaysia's Khazanah Nasional and Singapore's Temasek Holdings.

Source: Straits Times, 19 Jan 2013