In brief
CBRE is marketing a freehold second-floor shophouse unit at 31A Lorong Mambong in Singapore’s Holland Village through an Expression of Interest sale, closing on 8 February 2024 at 3pm. The unit has an estimated strata area of 2,293 sq ft, around 33 metres of dual road frontage and an indicative guide price of S$9.6 million. It is currently leased to a gym and fitness operator. CBRE says the property is zoned for commercial use and that local and foreign buyers are eligible, with no ABSD or SSD applying to the purchase. Possible changes to uses such as dining, nightlife or accommodation would require approval from relevant authorities. The unit is near Holland Village MRT and a bus stop, which CBRE says are a three-minute walk away.
Key takeaways
- CBRE is offering the freehold second-floor unit through an Expression of Interest process closing on 8 February 2024.
- The indicative guide price is S$9.6 million, with an estimated strata area of 2,293 sq ft.
- The property is currently leased to a gym and fitness operator.
- Potential alternative uses include dining, nightlife and accommodation, subject to authority approval.
Singapore, January 12, 2024 -- CBRE, as the exclusive marketing agent, is pleased to offer for sale a freehold shophouse unit located on the second floor of a 2-storey corner shophouse located at 31A Lorong Mambong. The sale will be conducted through an Expression of Interest exercise, which will close on Thursday, 8 February 2024, at 3pm.
The asset commands an impressive dual road frontage of approximately 33 metres, spanning across Lorong Mambong and a service lane. The unit has an estimated strata area of about 2,293 sq ft and is presently fully-tenanted to an established Gym / Fitness chain with multiple outlets islandwide, offering the incoming investor with stable and immediate rental income.
The shophouse unit has an indicative guide price of S$9.6 million, or approximately S$4,200 psf on the existing strata area. Being a property that is zoned for ‘Commercial’ use under the 2019 Master Plan and both locals and foreigners are eligible to purchase the subject property, with no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase.
Clemence Lee, Executive Director of Capital Markets, Singapore at CBRE, says, “Astute investors understand the rarity of such palatable freehold shophouse units, which are typically tightly held and rarely made available for sale. With only 66 commercial shophouses in Holland Village and the scarcity of such suburban shophouse opportunities in general, we expect the investment opportunity to garner strong interest from a wide range of investors such as family offices, owner-occupiers, local companies, and high-net-worth individuals.”
Nestled right in the heart of District 10, one of Singapore’s most affluent residential estates, Holland Village was previously known as an expatriate neighbourhood in Singapore’s pre-independence days. Today, the district has evolved into a bustling and popular F&B lifestyle destination that offers a wide variety of cafés, restaurants, and bars that are frequented by locals and tourists alike. Some renowned and popular establishments include – Little Farms Market, Crystal Jade, Bird of Paradise, Lola’s, Tai Cheong Bakery and Two Men Bagel House. At dusk, the entire street along Lorong Mambong bustles with life as the single lane road is closed to vehicles, with the restaurants and bars lined up along both sides of the road typically filled with patrons.
Mr Lee adds, “The long-awaited retail mall at One Holland Village opened its doors in early December 2023, injecting a refreshing wave of retail offerings and vibrancy to Holland Village. The open-air pet-friendly mall connects seamlessly with the commercial shophouses at Lorong Mambong and Lorong Liput, evokes a nostalgic and homely village atmosphere, and uplifts the district with a new mix of dining options and eclectic retail outlets. The landmark mega-project is also set to generate further positive spillovers with the completion of One Holland Village Residences, comprising 296 new residential apartments and 255 serviced apartment units by end-2024.
Although the unit is presently occupied by a Gym / Fitness Centre, the incoming owner can look to unlock further rental and capital values by changing its use into F&B or for Accommodation uses. Under F&B uses, the 2nd floor shophouse unit can potentially be converted to a Nightclub, Bar, or Restaurant with Live Music/Performance. Alternatively, the unit can also potentially accommodate a Hotel, Serviced Apartment or Backpackers’ Hostel. These changes of use will all be subject to approval from the relevant authorities.
The asset enjoys excellent accessibility with close proximity to public transportation nodes, such as Holland Village MRT and a bus stop along Holland Road - both located at just a short 3-minutes walk away. The nearby Pan-Island Expressway (PIE) and Ayer-Rajah Expressway (AYE) also make it easily accessible from other parts of Singapore.
About CBRE Group, Inc.
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 2022 revenue). The company has approximately 115,000 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.
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Questions around this news
What property is being offered for sale in Holland Village?
The offering is a freehold second-floor unit in a two-storey corner shophouse at 31A Lorong Mambong. It has an estimated strata area of about 2,293 square feet and dual road frontage of approximately 33 metres. The unit is currently fully tenanted to a gym and fitness chain, and the stated indicative guide price is S$9.6 million.
What does an Expression of Interest sale involve?
An Expression of Interest is a process in which interested parties submit proposals by a stated deadline. It allows a seller to invite and assess offers without necessarily committing to accept any particular proposal. The specific submission requirements and subsequent steps depend on the terms set for that sale.
Could the shophouse unit be used for a restaurant or accommodation?
The release says a future owner could explore changing the current gym use to food and beverage or accommodation use. Potential examples mentioned include a restaurant, bar, nightclub, hotel, serviced apartment or backpackers’ hostel. Any such change would require approval from the relevant authorities; the release does not state that approval has been granted.
What does freehold mean in a property listing?
Freehold generally describes a form of property ownership without a fixed lease expiry date. It differs from leasehold ownership, which grants rights for a defined period. The legal rights and obligations attached to a specific property depend on its title and applicable local law.
SEC filings
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