The shop and office spaces, measuring 22,980 square feet in all, were put up via an expression of interest that closes on April 16. CBRE is the sole marketing agent.
CBRE's assistant manager of investment properties Alex Chow said that the vendor is looking for offers in the region of $38 million or $1,650 per square foot.
The 43 units in the seven-storey development, which has 34 years left on its 99-year lease, constitute 22.6 per cent of the building's total strata area and will give the buyer 19.8 per cent of its total share value.
A single sale to a sole buyer is preferred. Alternatively, interested parties can also make separate purchases in three lots at a price of $1,650 psf as well.
The first parcel is for the 8,654 sq ft space stretched across 16 contiguous units on the fourth floor.
A Chinese language school, whose lease expires at the end of 2015, is occupying 7,018 sq ft of the lot at the moment, while the remaining space is vacant.
The next two lots are on the sixth floor, with one parcel comprising 10,797 sq ft in 18 adjoining units, and the other, 3,529 sq ft from nine adjacent units that are currently unoccupied.
The larger lot is currently held by a business school whose lease expires in October this year.
"We also expect to see keen interest from investors as the gross passing rents are between $6 and $6.50 psf, which will give a gross rental yield of 3.55 per cent based on the guide price of $38 million and current occupancy rate of 77.5 per cent. Further rental yield upside can be expected with an increase in occupancy rate," added Mr Chow. The shopping centre sits at 190 Clemenceau Avenue, by the intersection with Penang Road, near Park Mall.
"Contiguous shop/office strata space off Orchard Road is difficult to come by and Singapore Shopping Centre, with its strategic location and close proximity to Dhoby Ghaut MRT, will be ideal for various businesses such as education, retail, F&B and lifestyle," he said.
The building currently houses offices, enrichment centres and beauty spas and has 44 lots in the car park.
A third floor shop unit was the latest transaction to be made in the building. It changed hands in January this year at $1,394 psf for the 215 sq ft space.
Source: Business Times, 14 Mar 2013