Spanish tycoon bought at huge premium for this conservation shophouse
Famous Ricardo Portabella Peralta the business tycoon from Spain is busy expanding his portfolio of conservation shophouses in Singapore. Currently is the country top investment sector.
He recently picked up 29 Stanley Street, a 3-storey conservation shophouse which falls in the Central Business District.
This price is nearly 36% premium for the project when it transacted less in one year ago. The seller who is known for being an ace property investor in Singapore had bought this for about S$16.2 million in the latter half of 2018 according to reports in the media.
The said property is located close to Telok Ayer MRT Station. The site has a 99-year leasehold tenure which started in December 1990 and still has 71 years remaining on its tenure.
The entity liked to Mr Peralta that picked up the property at nearly S$3,400 psf for the leasehold property that has Gross Floor Area of 6,500 sq ft.
According to market analysts this price has been on the higher side considering the fact that the seller had paid about S$2,490 psf while acquiring the property last year.
It has been reported in the media that another tycoon SP Tao’s investment vehicle Shing Kwan is planning to sell 87 and 88 Amoy Street that also have nearly 71 years of lease tenure remaining for S$39 million and going by the 14,641 sq ft Gross Floor Area this would translate to a rate of S$2,664 psf.
James Heng the founder of Duck & Hippo Group has also picked up 21 Boon Tat Street at the rate of S$4,259 psf recently.
The said property has a 999-year long leasehold tenure. All these three properties fall under the Telok Ayer Conservation Area which has turned into a vibrant area for lifestyle and F&B joints in the city.
As far as 29 Stanley Street is concerned among the tenants are Chi Kinjo, a modern sushi and cocktail bar operated from the ground floor while the upper levels in the building are leased to offices.
Interestingly Mr Peralta already owns No 30 on the same street which he had bought in 2016 and this is his second acquisition apart from several other properties in Singapore.
Among the other places that the Spanish tycoon has invested in Singapore include Ann Siang Road, Amoy Street, Pagoda Street, Telok Ayer Street, Boon Tat Street and Craig Road.
According to experts in this business the market for shophouses has been brightening up since the announcement of cooling measures for residential properties and this has redirected investors towards shophouses due to the higher taxes in residential properties.
Conservation shophouses in District 1 and 2 of Chinatown and Central Business District are in scarcity and in great demand among investors.
These properties offer higher rental yields and also are easy to get financed when compared to residential properties.
The fact that foreigners can also invest in these properties makes it even better. Since these properties are zoned commercial, they attract more investors especial among foreign nationals.
Foreigners are entitled to land title ownership which has been attracting them towards these properties.