Photo by CBRE
A portfolio of 11 HDB shophouses and a 999-year leasehold strata retail shop in Peninsula Plaza are going for sale at a guide price of S$52.2 million. According to exclusive marketing agent CBRE, the HDB shophouses have prominent frontages, high footfall and are located in mature residential hubs near road junctions, grocery markets, coffee shops or food centres. The assets are divided into two clusters.
The assets can be purchased by interested parties either separately or as a portfolio. The portfolio includes 7 HDB shophouses in the first cluster, which are rented out to blue-chip tenant 7-Eleven on a long-term basis. Cold Storage Singapore, a subsidiary of Dairy Farm International, holds the license to the 7-Eleven brand in Singapore.
The first cluster of seven HDB shophouses, with individual guide prices ranging from S$1.68 million to S$5.67 million, is occupied by blue-chip tenant 7-Eleven on a long-term basis. The second cluster features four HDB shophouses and a strata commercial unit at #01-35, Peninsula Plaza, with individual guide prices ranging from S$3.15 million to S$12.18 million. The entire portfolio provides investors with a stable and defensive income stream, with built-in annual rental revisions in place.
CBRE has stated that all assets in the second cluster are currently leased, ensuring that the portfolio provides immediate rental income to investors seeking steady cash flows. Additionally, the real estate services and investment firm has noted that owner-occupiers may also utilize the shophouses upon expiration of the respective leases.
According to Clemence Lee, CBRE's executive director of capital markets in Singapore, this portfolio presents a unique opportunity for investors to acquire a collection of prime heartland HDB shophouses that would otherwise be difficult to accumulate. As sales of HDB shops were discontinued in 1998, the supply of such properties is extremely limited, with only around 8,500 HDB shophouses available for resale on the private market. Consequently, these properties are similar to conservation shophouses.
Interested parties may submit their expressions of interest for the asset portfolio until May 10 at 2 pm.