A row of freehold conversation shophouses in Geylang that had been damaged in fire earlier in the year have been put up for sale.
The Expression of Interest for the four freehold commercial properties was launched by Knight Frank Singapore, the agents for this sale. As per the EOI the guide price has been set at S$14 million.
In the month of March this year a major fire had engulfed the shophouses in a row. The fire that spread quickly early morning had damaged five out of the seven two-storey properties.
The damage was intense as the shophouses shared the roof and the presence of combustible materials and furniture inside added to the damage. There were no reported injuries of physical injuries during the incident.
Prior to the incident, the four shophouses had an electrical shop a furniture retailer and business trading in tyres.
The four units have a combined 5,113 square feet of land area and the site has been zoned commercial under the 2014 Master Plan of the Urban Redevelopment Authority with 3.0 plot ratio.
This would offer the buyer the potential to add 15,339 sq ft of floor space in the site.
The location of these shophouses serves as a major incentive and they are part of Geylang Road’s main stretch and close to the junction of Lorong 33 Geylang. Dakota and Paya Lebar MRT Stations are also in close vicinity of the site.
An executive for Knight Frank stated that the price tag for the shophouses is on the lower side considering it is part of the Central Business District and given the development initiatives that have been taken up in the area there is good chance of upset in the near future.
The executive added owing to these advantages the owners of the shophouses expect good levels of interest among investors as well as corporates that are looking for commercial freehold sites within the Central Business District.
Knight Frank Singapore’s Executive Director of Investment and Capital Markets, Mary Sai said the buyer has the option of redeveloping the site following URA’s conservation guidelines.
There is also a scope for rear extension up to certain allowable height as the site is a secondary settlement area. The developer would need to approach the authorities to get necessary approvals.
She added that foreign nationals are also eligible to invest in these commercial properties and it won’t attract additional buyer’s stamp duty as well as the seller’s stamp duty.
These shophouses are ideal for food & beverage outlets and offices. There would also be no GST (goods and service tax) since the owners aren’t registered with GST.
The EOI exercise for these properties shall close on August 15 at 3:00 PM