Jerry Tan Residential, the high-end boutique property agent recently sold 65 Club Street to JL Family Office for S$15.7 million.
JL Family Office has been set up by the co-founder of ARA Asset Management, John Lim.
Mr. Lim’s son Andy will head JL Family Office which will now be housed at the newly purchased shophouse.
65 Club Street, a conservation corner shophouse, has a 999-year lease agreement and stands on a raised cul-de-sac.
Currently the family office is situated at Balmoral Plaza.
The shophouse at 65 Club Street comprises of 3 storeys along with one mezzanine floor.
The shophouse measures 2,083 square feet and stands diagonally opposite the 76 Club Street Chinese Weekly Entertainment Club which is a private club for millionaires that has been in operations since the 1890s.
The sale came through a private treaty which was brokered by Savills Singapore.
Yap Hui Yee, the investment sales director of Savills Singapore said that even though the ongoing economic situation isn’t favourable, interest for shophouses and their prices continue to remain stable.
She said that it was mainly to a strong liquidity of buyers, their pent-up demand and the current low interest rate prevailing in the market.
Yap Hui Yee added that it has been seen that over the years there has been a trend of family offices investing in shophouses, both locally and abroad.
Investing in shophouses has been seen as a sure way of preserving capital mainly because even during economic turmoil, their prices remain fairly strong and continue to attract buyers.
According to Savills, who after considering the absolute price value of 65 Club Street, said that this deal might be the major CBD shophouse transaction to have seen the sunlight this year.
If the gross floor area is estimated to be 5,400 square feet then the S$15.7 million breaks out as S$2,907 psf (per square foot), Savills Singapore said.
According to the Master Plan 2019 made by the Urban Redevelopment Authority, this property has been earmarked for commercial use. Additionally, it is also a part of the Telok Ayer Conversation Area.