Three Tanjong Pagar conservation shophouses up for sale at $43 mil
Their scarcity, full occupancy and recurring rental income may support investor interest, while foreign-buyer eligibility and no ABSD could broaden the potential buyer pool.
Three conservation shophouses on Tanjong Pagar Road are offered at $43 million, or $3,800 psf, a 35.2% premium over their 2021 acquisition cost.
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A portfolio of three conservation shophouses at 83, 91 and 97 Tanjong Pagar Road has been put up for sale at a combined guide price of $43 million, or about $3,800 psf based on their total floor area.
Located within the Tanjong Pagar Conservation Area in District 2, the three commercially zoned shophouses have a combined land area of approximately 4,022 sq ft and a total floor area of 11,306 sq ft.
Both 83 and 91 Tanjong Pagar Road are three-storey conservation shophouses with attics, while 97 Tanjong Pagar Road is a two-storey shophouse with an attic.
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The guide prices for 83 and 91 Tanjong Pagar Road are $14.5 million each, while 97 Tanjong Pagar Road has a guide price of $14 million.
The seller, Strathmore Management, acquired the three shophouses in separate transactions in 2021, based on caveats lodged.
Strathmore purchased 91 Tanjong Pagar Road for $10.5 million in May 2021, followed by 97 Tanjong Pagar Road for $10 million in September and 83 Tanjong Pagar Road for $11.3 million in October that year.
The combined purchase price was $31.8 million, compared with the current guide price of $43 million, representing a premium of 35.2% over the acquisition cost five years ago.
All three shophouses are on 99-year leases commencing in 1992, with approximately 65 years remaining. They are fully tenanted to a mix of established F&B, retail, lifestyle and wellness operators, as well as professional services firms.
At 91 Tanjong Pagar Road, the ground floor is occupied by bespoke jewellery retailer Michael Trio, while Korean fusion restaurant Kream Korea occupies the ground floor of 83 Tanjong Pagar Road. The ground-floor tenant at 97 Tanjong Pagar Road is Peranakan restaurant Blue Ginger.
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According to CBRE, several of the tenants are long-standing occupiers, providing recurring rental income for prospective buyers.
Once known for traditional businesses and bridal shops, Tanjong Pagar has evolved into a bustling dining and lifestyle destination, with an eclectic mix of restaurants, cafés, bars, and speciality retailers. The precinct also benefits from the working population of nearby office developments such as Guoco Tower, International Plaza and Frasers Tower.
"Conservation shophouses in Tanjong Pagar are tightly held and seldom come to market, let alone three at once with prime frontage along Tanjong Pagar Road," says Clemence Lee, executive director of capital markets, Singapore, at CBRE.
He adds that the properties are well maintained and fully occupied, offering investors immediate rental income with minimal leasing risk.
The shophouses are within a 10-minute walk of Tanjong Pagar, Maxwell and Outram Park MRT stations. As commercially zoned properties, they are open to foreign buyers and companies, with no additional buyer's stamp duty (ABSD) payable.
CBRE is marketing the three properties through an expression of interest (EOI) exercise, which closes on Nov 26 at 3pm. Buyers can submit offers for the entire portfolio or individual shophouses.
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