By Tria Dianti
SINGAPORE – Ten adjoining shops in Cuppage Plaza, a commercial and entertainment spot along Orchard Road, will be put up for sale via tender at an indicative price of S$12 million.
In a statement on Tuesday (7 March), PropNex Realty said that the tender will start on Wednesday and will close at 2pm on 3 May.
Based on a combined strata area of 5,112 sq ft for the 10 adjoining shops, the guide price translates to about S$2,347 per sq ftt (psf).
Developed by Far East Organization, Cuppage Plaza at 5 Koek Road in District 9 has a 99-year leasehold tenure, which started from August 1979.
The building – which is located near the Somerset MRT station and several retail malls – is known for its eclectic selection of Japanese restaurants and KTV lounges.
Tracy Goh, Head of Investment and Collective Sales at PropNex, said, “The 10 strata shops are owned by a single owner, who has been holding on to the property since it was built. The space has always been fully-leased since day one and has never been vacant over the last four decades.”
A sizeable adjoining shop space has been approved for a nightclub and presently tenanted to a nightlife business operator, PropNext said. “We expect the high gross rental yield of more than 4 per cent and the continued keen tenancy interest for such premises to appeal to investors, presenting them with a good recurring income and strong rental demand,” Goh added.
As the portfolio of shops are for commercial use, they are not subjected to the additional buyer’s stamp duty (ABSD) or the seller’s stamp duty (SSD). Foreign buyers are also eligible to purchase the properties.
The most recent transaction at the building was for the sale of a 269.1 sq ft retail space for S$795,000 (or $2,954 psf) in June 2022.
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