A rare opportunity to own a collection of 14 retail shops has arisen, as ERA Realty Network has recently launched an expression of interest (EOI) exercise for these properties. The portfolio, with a total price of $26.46 million, comprises of units at Peninsula Plaza, Sim Lim Square, and Far East Plaza.
Out of the 14 units, two are located at Peninsula Plaza, a 999-year leasehold mixed-use development along North Bridge Road. These adjoining ground-floor shop units have a combined strata area of approximately 990 square feet and are asking for $8 million, or $8,081 per square foot (psf).
Peninsula Plaza is a commercial development with 30 storeys and was completed in 1980. It includes a six-storey retail podium and a 24-storey office tower, and is directly linked to the City Hall MRT Interchange Station, providing access to both the North-South and East-West lines.
At Sim Lim Square, 11 strata units with a total strata area of 5,081 square feet are up for sale. These units, zoned for commercial use, are all located on the fifth floor and have a 99-year lease that commenced in April 1983, with approximately 57 years remaining. According to ERA, most of the units are currently tenanted. These shops face the mall’s main atrium, providing direct access from the escalators and lifts.
These 11 units at Sim Lim Square can either be purchased collectively or individually. The individual units are priced from $840,000, while the whole portfolio is currently asking for $15.855 million, which ERA says is a 20% discount from the latest valuation. This translates to $3,120 psf on the strata area.
Sim Lim Square is a strata-titled commercial development located at Rochor Canal Road in District 7. It was completed in 1987 and comprises of 492 commercial units spread across six floors and two basement levels.
The last remaining unit for sale is situated at Far East Plaza along Scotts Road. This freehold retail unit is located on the second floor, with a strata floor area of 355 square feet, and it faces the escalator near the mall’s main entrance. It is currently priced at $2.6 million, or $7,324 psf.
Far East Plaza is a freehold mixed-use development completed in 1982. It consists of a five-storey retail mall and serviced apartments, and it is within walking distance of Orchard Road MRT Station.
Donald Goh, director of capital markets and investment sales at ERA, believes that these properties will attract interest from both property investors and business owners. He notes that strata retail sales in the Downtown Core and Orchard Planning Area remained resilient last year, with 28 and 33 deals recorded in each area, respectively. Goh adds: “A ground floor unit at Lucky Plaza was sold for $15,242 psf while units at Orchard Towers and The 101 were sold for $5,309 psf and $5,657 psf, respectively, a testament that strata retail shops are still an attractive investment.”
The EOI for these retail shops will close on April 17 at 3pm. Interested parties can check out the latest listings for Peninsula Plaza properties.
Owning a condo offers various advantages, one of which is the opportunity to leverage its value for further investments. This means that many condo investors use their properties as collateral to secure additional financing for new investments, allowing them to expand their real estate portfolio. However, this approach also carries risks, so it is crucial to have a solid financial plan in place and carefully consider the potential impact of market fluctuations. By using a condo as a form of leverage, investors have the potential to amplify their returns, but it is important to proceed with caution and make informed decisions.