Chinatown shophouse trio The Platinum at Upper Cross Street relaunched at $45 mil, 18% below year-ago price
The lower entry price, full occupancy and potential alternative uses may widen investor interest while testing demand for prime leasehold conservation assets with 75 years remaining.
The Platinum’s three conserved Upper Cross Street shophouses were relaunched at $45 million, or $3,140 psf by GFA, 18% below their year-ago asking price.
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The Platinum, a row of conserved shophouses at 44, 46 and 48 Upper Cross Street in the heart of Chinatown, has been relaunched for sale via an expression of interest (EOI). The guide price of $45 million is $10 million (18%) lower than the asking price of $55 million a year ago.
The properties occupy a combined site area of 4,200 sq ft with a 21.5m street frontage. Combined, they have a total gross floor area (GFA) of 14,330 sq ft. Hence, the revised guide price of $45 million translates to $3,140 psf based on GFA, says Yong Choon Fah, senior associate director of Brilliance Capital, the exclusive marketing agent for the shophouses.
The first level of the four-storey shophouses features three retail units that are tenanted to herbal hair treatment salon Two Herbs, organic products retailer Enhance Organic Biotechnology and Chinese pharmaceutical brand Beijing Tong Ren Tang, founded in 1669.
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The three upper floors house 17 studio units, all fully leased. The building has a lift serving every floor.
Owner for close to 24 years
The owner, investment holding company Tomlinson Investment, acquired the site when URA offered five plots along Upper Cross Street for sale in May 2002.
Tomlinson Investment refurbished and restored the 1930s shophouses and repurposed them as a commercial property comprising 17 serviced apartments (SA2 — with a minimum stay of three months) and three retail shops. It has held the asset for the past 24 years.
The properties have a 99-year lease that began in 2002, with 75 years remaining.
“For the discerning investor, the remaining lease of this duration provides sufficient runway for multiple investment cycles at an attractive entry point materially below comparable freehold assets in the CBD,” says Yong.
Future asset enhancement, alternative uses
The block of shophouses has been zoned for commercial use under the URA Master Plan 2025. According to Yong, URA has indicated that it is prepared to consider proposals for alternative uses if they are supported by a comprehensive asset enhancement programme that meets prevailing planning and conservation requirements.
Future concepts could include hospitality-led accommodation, boutique lifestyle offerings, wellness-related uses, professional offices, education-related facilities or other commercial concepts that complement Chinatown’s continued rejuvenation.
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“The Platinum therefore presents opportunities for future asset enhancement,” notes Yong.
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The three adjoining four-storey conserved commercial shophouses on Upper Cross Street are directly opposite Chinatown MRT Interchange Station (North-East Line/Downtown Line). It is in the heart of Chinatown, “at the intersection of Singapore’s financial district and tourism belt, and one of the city-state’s most recognised heritage precincts”, says Brilliance Capital.
Upper Cross Street benefits from its proximity to Chinatown MRT Interchange and the adjoining Chinatown Point mall, the surrounding office population in the CBD, and the wide variety of F&B offerings in the area, especially with the opening of the retail podium at the neighbouring 989-room Mercure Icon City Centre — the largest Mercure hotel in the world — in 2024.
Brilliance Capital expects the shophouses at Upper Cross Street to benefit from urban renewal taking place in the neighbouring Raffles Place, Telok Ayer, Clarke Quay and Outram Park, as well as the future Greater Southern Waterfront.
Leasehold shophouse segment — resilient
Recent transactions suggest investor appetite for conservation shophouses remains firm, says Yong. Freehold deals in the area include a three-storey corner unit at 3 Keong Saik Road that changed hands in May for $22 million, a new high of $6,799 psf based on GFA.
Further down the street, the intermediate conservation shophouse at 22 Keong Saik Road was transacted at $16 million ($4,844 psf), according to caveats lodged.
The leasehold segment has proven equally resilient. A two-storey shophouse at 116 Tanjong Pagar Road changed hands for $5.6 million, according to a caveat lodged in May. Based on GFA, the price translates to $3,484 psf.
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The 99-year leasehold property has a lease from 1989, hence a remaining lease of 62 years.
Separately, a pair of freehold conservation shophouses at 136 and 138 Neil Road was reported to have transacted for $40.88 million, reflecting $3,577 psf on a GFA basis.
“The transactions highlight the continued depth of investor demand for prime conservation assets in Singapore,” says Yong. “Well-positioned leasehold conservation assets continue to command healthy capital values where location, income profile and long-term fundamentals are compelling.”
The EOI will close on Aug 12.
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