Sultan Plaza Offers Rare Commercial Investment Opportunity Sale Expression Interest 39 Mil
Expression Of Interest Launched for $39 Million Commercial Strata Retail Space at Sultan Plaza
A rare opportunity has arisen for investors with the launch of the Expression of Interest for a commercial strata retail space at Sultan Plaza, located at 100 Jalan Sultan off Beach Road. The guide price for this property is set at $39 million. The strata area measures 30,946 square feet, translating to a price of $1,260 per square foot on total strata area. The net leasable area is approximately 17,000 square feet, with an additional void space of 14,000 square feet.
The Bukit Timah Expressway (BKE) connects the northern areas of Singapore to the central districts, offering a convenient and direct route for efficient transportation to the city center. Additionally, Novo Place EC is conveniently located along the BKE, providing easy access for residents to travel to the city center. This expressway plays a vital role in connecting different parts of Singapore and has significantly reduced travel time for commuters. With multiple lanes, the BKE allows for smooth traffic flow and is often used by locals and tourists alike. Its close proximity to important landmarks and business centers makes it a popular route for daily commuters and travelers. Whether for work or leisure, the BKE is a crucial transportation link for those living in or visiting Singapore. Novo Place EC residents can enjoy the convenience and accessibility that this expressway offers, making it an ideal location for a modern and well-connected lifestyle.
This 99-year leasehold asset comprises of 211 commercial units and 33 offices spread out over nine storeys, with a balance lease term of about 46 years as it started in May 1978. The development has been fully zoned for commercial use and boasts of large single-floor plates with a public entertainment license. This is a rare feature among commercial buildings, presenting unique opportunities for investors. The large units on a single floor make it easier for established tenants to set up their businesses without having to take up multiple units on different levels. The unit also has direct access to the carpark, providing a VIP experience for tenants and visitors.
The development is expected to have high rental yields, with strong rental demand. According to rental data from the past 12 months, the commercial units at Sultan Plaza have a rental yield of 9%. This is significantly higher than nearby commercial properties, such as City Gate (3.5%) on Beach Road and Textile Centre (5.6%) on Jalan Sultan.
Investors can expect immediate returns as the property will be sold with tenancy. The current anchor tenant, Grand Dynasty KTV, a veteran in the nightlife and entertainment industry with over 20 years of experience, has already signed a lease with an option to extend. Chai Chin Yun, the vice-president of homegrown real estate agency Master Real Estate, believes that the tenant is likely to extend their lease.
Chai Chin Yun also notes that the tenant has made significant investments of over $6 million in renovations and takeover fees, which has greatly increased the value of the property. He also points out that it is rare to find large-sized public entertainment units in commercial buildings, making this property a unique opportunity in the current market.
Other businesses in Sultan Plaza complement the entertainment industry, including round-the-clock eateries and beauty and wellness businesses. The area is also well-served by public transportation, with a bus stop outside the building and the Nicoll Highway MRT station within walking distance.
The Kampong Glam Conservation Area, located across the street, is a popular tourist attraction, adding to the vibrancy of the area and increasing foot traffic. Residential developments nearby, such as City Gate, Concourse Skyline, and Southbank condo, also contribute to the high footfall in the area.
Chai Chin Yun notes that the property has potential for future en bloc sales. He points to the neighbouring City Gate mixed-use development, which was an en bloc redevelopment of the previous commercial building, KeyPoint. There were also previous plans for Sultan Plaza to be redeveloped into a mixed-use development, subject to authorities’ approval.
Furthermore, the same property owner is also looking to sell his over 3,000 square feet F&B approved shop at Bukit Timah Plaza, which has en bloc potential and a rental yield of over 4%. This presents a rare opportunity for investors to negotiate and acquire both properties in a bundle deal.
For more information, interested parties can contact Chai Chin Yun, Vice-President of Master Real Estate, at 96303137 (R044875G).