Portfolio of three boutique commercial buildings in CBD up for sale at $90 mil
Immediate rental income and potential conversion into about 450 hostel beds may attract investors seeking adaptable conservation assets under more supportive hospitality planning guidelines.
Three newly refurbished, fully tenanted CBD commercial buildings are offered individually or as a circa $90 million portfolio at $3,100 to $3,200 psf.
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A portfolio of three boutique commercial buildings located in the CBD have been launched for sale via an expression of interest (EOI) exercise. Located at 40 Carpenter Street, 38 North Canal Road and 32 Hongkong Street, the properties have guide prices of $22.4 million, $44.4 million and $22.35 million, respectively.
All three buildings are newly refurbished and fully tenanted, according to joint marketing agents Cushman & Wakefield and CBRE. They also come with fresh 99-year leases, they add.
The guide prices for the buildings translate to psf prices ranging from $3,100 to $3,200, based on gross floor area (GFA). They can be purchased individually or collectively, with the total portfolio priced at circa $90 million.
Read also: Fresh wave of conserved commercial buildings hits the market in Upper Circular Road after URA policy shift
The building at 40 Carpenter Street occupies 1,669 sq ft of land and has a GFA of about 7,012 sq ft. On North Canal Road, the building spans 3,320 sq ft of land and a GFA of around 14,322 sq ft. Meanwhile, the Hongkong Street building sits on 1,718 sq ft of land and has a GFA of approximately 7,211 sq ft. All the sites have a plot ratio of 4.2.
The assets are part of a wave of conservation commercial properties in Upper Circular Road that have hit the market following changes in URA’s planning policies for the area. “Fully tenanted and generating immediate rental income, the portfolio comes to market at a time when planning guidelines have become increasingly supportive of hospitality and short-stay accommodation uses,” comments Sophia Lim, director of capital markets at Cushman & Wakefield Singapore.
Clemence Lee, executive director of capital markets at CBRE Singapore, adds that the portfolio’s vendor has commissioned consultants to study the potential conversion of the assets. The buildings could be converted into a backpacker or student hostel with about 450 beds, subject to approvals from the relevant authorities. Alternatively, buyers can consider boutique hotel or serviced apartment conversions with larger room configurations.
The EOI exercise will close at 3pm on Aug 18.