Iconic standalone block of seven adjoining conservation shophouses at Chinatown for sale
CBRE, as the exclusive marketing agent, is pleased to offer for sale an iconic, standalone block of seven adjoining 3-storey conservation shophouses at 20 Trengganu Street (“the Property”). The sale will be conducted through an Expression of Interest exercise, which will close on 1 June 2022, Thursday at 3pm.
25 Apr 2022
Singapore, 25 April 2022 – CBRE, as the exclusive marketing agent, is pleased to offer for sale an iconic, standalone block of seven adjoining 3-storey conservation shophouses at 20 Trengganu Street (“the Property”). The sale will be conducted through an Expression of Interest exercise, which will close on 1 June 2022, Thursday at 3pm.
Strategically located within the heart of the Chinatown Historic District and one of Singapore’s most distinguished and popular tourist destinations, the Property sits on an island plot that occupies a total land area of 10,444 sq ft and has a total floor area of approximately 31,364 sq ft.
Presently, the ground floor is tenanted to multiple retail outlets such as a supermarket, antique shop and cosmetics shop, a restaurant on the second floor and a boutique hotel operator on the third floor. Enjoying excellent visibility and triple frontage of more than 100-metres along the main thoroughfares of Trengganu, Smith and Temple Street, there are also seven shopfront units with a total floor area of approximately 1,300 sq ft located in front of the Property, that can be leased from the Chinatown Business Association (CBA).
Indicative price for the Property is S$110 million. Foreigners are eligible to purchase with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the transaction.
Mr Clemence Lee (利伟强), Executive Director, Capital Markets, Singapore at CBRE, says, “There are several value-add opportunities which the incoming owners can look to unlock for the asset. The retail component on the ground floor can potentially be converted into restaurants or F&B kiosks, subject to approval from the relevant authorities. F&B uses on the ground floor typically command higher rents as compared to retail spaces. Alternatively, the retail spaces on the ground floor can be sub-divided further into smaller units which will allow the owner to charge a higher rent on a per foot basis. Lastly, for the second floor, the owner can look to convert the existing restaurant space into additional hotel rooms, subject to approval from the relevant authorities. The expansion of the hotel component will allow the owner or hotel operator to reposition and rebrand the hotel and enjoy economies of scale.”
Conservation shophouses in Chinatown are prized real estate and have long been highly regarded as being in a class by itself. 20 Trengganu Street is a landmark asset characterised by its impressive scale, prominent frontages and exceptional location in the heritage district and we expect interest from astute investors to be extremely strong. If sold at S$110 million, it will break the record for the largest shophouse transaction in Singapore, which is currently held by Porcelain Hotel at S$90 million transacted by CBRE early this year.
The 3 streets bounding the Property are typically converted into bustling street markets and bazaar during the Chinese New Year festive season, offering a variety of traditional goods and snacks. With the street light-ups that are commonly scheduled in conjunction with festive events, Chinatown will experience a substantial surge in shopper traffic during the respective festive seasons as locals and tourists flock in to enjoy the annual festival and dynamic atmosphere.
Additionally, the pedestrian walkway along 20 Trengganu Street can be leased to third-party vendors and operated as part of the street market during the festive periods leading up to Chinese New Year and Mid-Autumn festivals. This will contribute to the total rental income collected from the property yearly.
Mr Lee adds, “With the latest relaxation of border restrictions and measures, Singapore has extended quarantine-free travel to all fully vaccinated individual. We expect an uptick of tourist activities on the back of a huge pent-up demand for international travel, and tourism activities to rebound swiftly to pre-pandemic levels. Office crowds have already returned to the CBD, and we have started to observe tour groups along the heritage trails of Chinatown. The incoming owner is well-positioned to capitalize on the rebound of the tourism industry and enjoy mid to long term positive rental reversion and capital appreciation.”
20 Trengganu Street enjoys exceptional accessibility being enveloped by numerous MRT Stations – Chinatown MRT Interchange and the upcoming Maxwell MRT Station that are only a short walk away. The nearby Keppel Viaduct, Central Expressway (CTE) and Marine Coastal Expressway (MCE) also makes it highly accessible to other parts of Singapore.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.