Singapore: DTZ Debenham Tie Leung (SEA) Pte Ltd (“DTZ”) is the Sole Marketing Agent for the sale of four shophouses at Boat Quay – a single shophouse and another contiguous row of three shophouse units. We are inviting offers for the purchase of the subject properties through an Expression of Interest (EOI) exercise which will close at 3pm on Tuesday, 21 April 2015. The single shophouse has a site area of 1,360 sq ft and a gross floor area of 4,321 sq ft, while the three adjoining shophouses have a combined site area of 4,058 sq ft and a combined gross floor area of 11,514 sq ft. They enjoy an excellent, unobstructed view of the beautiful Singapore River, and are located in the Boat Quay Conservation Area, zoned for commercial use under the 2014 Master Plan. Both the Clarke Quay and the Raffles Place MRT Stations are within short walking distance.
The properties are fully tenanted, predominantly to F&B tenants, offering immediate and stable rental income to the investors.
Since being gazetted for conservation in July 1989, the Boat Quay district has evolved into a thriving area offering an eclectic mix of high-end restaurants and alfresco dining, lively bars and pubs. It is well patronized not only by tourists for its heritage and charm, but is also a popular after-work hangout place for working professionals and expatriates from the nearby Raffles Place. Some of the established and well-known F&B operators in the district includes Absinthe Restaurant Francais, Wakanui Grill Dining Restaurant, The Penny Black, Harry’s Bar, RedDot BrewHouse, Bitters and Love, Enoteca L’Operetta, Hombre Cantina, Katannashi, Kinara North, Madame Patisserie, Forum Seafood, amongst others.
URA has been looking into enhancing the Outdoor Refreshment Areas (ORAs) along Boat Quay to offer better dining experiences. It released an Expression of Interest last year, inviting consultant teams to study how ORAs along the waterfront promenade can be improved and the proposals are expected to be announced soon.
Swee Shou Fern, Senior Director, Investment Advisory Services commented: “Shophouses along Boat Quay are rarely available for sale, and three adjoining shophouse units are an even rarer opportunity. Bearing historical design and architecture, rich heritage and a unique charm, conservation shophouses are well sought after by investors as collectors’ items for their scarcity.”
In the past 12 months, 119 shophouses with a total worth of $683 million have changed hands, reflecting the strong demand from investors for shophouses as an asset class. Some recent notable transactions include 75 Pagoda street which transacted at $20 million, reflecting $3,500 psf on estimated built-up area, and 32, 34 and 34A Sultan Gate which transacted at $20.8 million, reflecting $2,600 psf on estimated built-up area.
Source: DTZ Singapore, 18 Mar 2015