By Michelle zhu
source: The Business Times
MARKETING agent Colliers International is putting up a pair of adjoining freehold six-storey commercial buildings for sale via an expression of interest (EO!) on May 11.
Located at 70 and 72 South Bridge Road, the buildings have been given an indicative price of $$45 million. This translates to about $$3,550 per square foot on the existing gross floor area across both buildings, Colliers said in a statement on Monday.
‘The combined site area is 2,325 square feet (sq ft) with a total gross floor area (GFA) of about 12,700 sq ft.
Under the Urban Redevelopment Authority’s Master Plan 2019, the site has a gross plot ratio 4.2 and is zoned “commercial” ~ meaning that foreigners are eligible to purchase the asset. There will also be no additional buyer’s stamp duty nor seller’s stamp duty for this property transaction,
Colliers described the buildings as being strategically located on the fringe of the Central Business District. ‘They are among the taller ones in the area, with the higher floors offering views of the Singapore River. Their location at a corner plot offers prominent dual road frontages on Hong Kong Street and South Bridge Road.
Clarke Quay MRT station and the Raffles Place MRT interchange station are less than a 10-minute walk away, added the agent.
“This investment is of bite-size quantum in today’s buoyant commercial market,” said Steven Tan, executive director of investment services at Colliers.
Noting that the pair of buildings are located along a stretch of lively F&B (food and beverage) and active lifestyle concepts with relatively heavy foot traffic, he said that the asset offers investors “real value rental opportunities’.
He suggested, for example, that the asset could potentially be reconfigured in an asset-enhancement initiative to further maximise the leasable space. Self-occupiers could also acquire naming and signage rights due to the asset’s wide frontages which allow for it, he added.
He added that, with the current commercial market remaining fluid and positive, the seller is looking to recycle capital to refocus on enhancement of business goals and direction. The seller is open to sale-and-lease back, subject to further negotiations, said Mr Tan.
The EOI for the commercial properties closes at 3 pm on June 16.