Rochor Canal Road’s Sim Lim Square has been put up for en bloc sale at S$1.25 billion reserve price.
SLP International Property Consultants the marketing agent for the sale said that the property was put up for sale via a public tender on Monday April 29.
Sim Lim Square is one of the famous IT Mall in Singapore, the retail strata mall has 6 floors and 2 basements that have 492 commercial units in total.
The commercial site has a 99-year leasehold covering total areas of 78,152 sq ft and has 63 years remaining for its lease tenure.
As per the Urban Redevelopment Authority’s Master Plan, the site has been classified as commercial zone with approved GFA of 391,000 sq ft.
The plot ratio for this site is 4.2. The square-shaped plot has road frontage on three sides and pedestrian access along all its sides.
Sim Lim Square was completed in 1985 and has been a popular destination among Singaporeans for IT goods and electronics with several retailers having their stores here.
Most of the stores are operated by entrepreneurs and shop owners. Many of these owners have been in business since 1980s.
The mall is close to Bras Basah-Bugis planning area one of the major commercial precincts. Kampong Glam the historical district is also close to the mall.
This has resulted in high footfalls in the mall which sees high volumes both among the locals as well as foreigners according to SLP.
The marketing agent also noted that since the mall is a part of the Ophir-Rochor Corridor it will allow the new owner to add value to their asset. With the expanded downtown area going though major upgrade plans the future looks good for this area.
Chairman of the mall’s Collective Sales Committee, Mr Vikas Gupta said that the mall is under-utilised to a great extent under the current strata system which doesn’t allow the mall to make use of the spare space available and hence they have decided to put the property under collective sale.
The tender for Sim Lim Square would close on June 24 at 3:00 PM
Commercial real estate in Singapore is buzzing with activity and the last few weeks have seen over a billion-dollar worth in deals take place. This is higher than the investment into this segment in Q1, 2018.
The Latest and the biggest blockbuster sale goes to Oxley Chevron House which sold for $1.025 billion in an Expression of Interest exercise. The prime office building is now owned by AEW Real Estate, a US based company.
Premium Grade-A Office blocks 7 and 9 Tampines Grande was recently acquired by Evia Real Estate and Metro Holdings. They bought this for $395 million from Alpha Investment Partners and City Developments Limited (CDL).
In similar development CLSA and Mitsubishi Estate signed a share purchase agreement with a consortium led by Perennial to buy the Chinatown Point Mall in a deal estimated to be $520 million.
Tanjong Pagar office building Realty Centre that was sold en bloc for $148 million earned the distinction of being the 2nd commercial collective sale deal for 2019.
It was a muted Q1 in the investment sales market and the total sales during this period was recorded at $4.6 billion which is 21% lesser compared to Q1 last year.
This figure is about 13% of the total investment volume in 2018. $1.2 billion of the transactions came from the residential sector while $900 million came from hospitality and commercial sectors respectively.
Mixed-use developments contributed $1 billion of sales and there was $600 million from the industrial sector.
The office sector didn’t pick up activity in Q1 this year and there were handful strata deals to talk about.
Among the noteworthy deal during this period was Alpha Investment Partners acquisition of office floors in Suntec Tower 1 & 2 for $160 million.
The retail sector on the other hand has witnessed quite a few transactions including the $400 million acquisition of Liang Court Mall by CDL and CapitaLand.
There was also the news of Rivervale Mall being bought for $230 million by SC Capital Partners.
There have been several transactions in the hospitality and industrial sectors as well in the recent months. SGRE Banyan signed a sale-and-leaseback agreement for 121 Banyan Drive warehouse with Vibrant Group for $227.5 million.
Office sector has so far been the most active in the recent months and Central Business District’s Grade- A offices which had seen 12.7% raise in rents last year are expected to see another 9% this year.
Investor interest in this segment is high due to limited supply of new completions and also the vacancy rates which have dropped to the lowest in a decade.
Frasers Property is currently engaged in talks to see its Frasers Tower. CapitaLand Commercial Trust the biggest owners of office space in Singapore is also eyeing to pick up Duo Tower along with its retail component.
Hospitality sector may also witness few deals in the next few months. There are reports of RB Capital conducting exclusive due diligence for Duo Andaz Hotel.