In brief
CBRE is marketing a freehold, three-storey shophouse at 255 Jalan Besar in Singapore through a public tender closing on 30 November 2023. The property has an approximately 3,145-square-foot site and approximately 7,750 square feet of gross floor area; its guide price is S$22 million. CBRE says the site has potential for additional floor area and alternative uses, subject to relevant authorities’ approval. The company also notes the property’s commercial zoning and access to Jalan Besar and Farrer Park MRT stations. CBRE representatives cite the location’s food, cultural and lifestyle offerings, as well as interest in city-fringe shophouses, as factors relevant to the offering.
Key takeaways
- CBRE is offering the property by public tender, with bids closing on 30 November 2023 at 12pm.
- The guide price is S$22 million for a freehold shophouse at 255 Jalan Besar.
- CBRE says additional floor area and alternative uses may be possible, subject to authority approval.
- The property is near Jalan Besar and Farrer Park MRT stations.
Singapore, October 31, 2023 -- CBRE, as the exclusive marketing agent, is offering for sale, a 3-storey freehold shophouse at 255 Jalan Besar. The sale will be conducted by way of Public Tender, which closes on 30 November 2023, Thursday, at 12pm.
The Property sits on a site of approximately 3,145 sq ft and has a Gross Floor Area (GFA) of approximately 7,750 sq ft. Situated in the Jalan Besar Secondary Conservation area and zoned for “Commercial” with a Gross Plot Ratio of (GPR) of 3.0 under the URA’s Master Plan 2019, the Property has an untapped GFA of approximately 1,685 sq ft. With a high development baseline of 9,435 sq ft under Use Group A (Commercial), the incoming buyer can maximize the plot ratio of the Property without paying additional Land Betterment Charge, subject to approval from relevant authorities.
The guide price is S$22 million, which translates to approximately S$2,838 per square foot based on the total Gross Floor Area or S$2,331 per square foot based on the maximum allowable floor area of 9,435 sq ft. Being a commercial property, both locals and foreigners are eligible to purchase and there will not be any Additional Buyer’s Stamp Duty and Seller’s Stamp Duty applicable.
Located at the heart of Jalan Besar, the Property is in an area that has undergone rejuvenation and has gentrified into a lifestyle destination. It is home to an array of well-known eateries and the area is often abuzz with both locals and tourists seeking gourmet food options or immersing in the history and culture the area has to offer.
Mr Michael Tay (郑兆能), Head of Capital Markets, Singapore at CBRE, says, “Given the exceptional attributes such as freehold tenure, wide frontage, and potential for naming and signage rights, we expect strong interest from both investors and owner-occupiers. In the past 12 months, we have observed a growing demand of shophouses that are in the city fringe with notable transactions including 203 to 207 Jalan Besar for $38.5 million in October 2023, 301 Jalan Besar for $26 million in May 2023 and 109 to 117 Jalan Besar for S$40 million in September 2022.
Given the high prices of CBD shophouses, buyers have been looking for good opportunities in the city fringe which include Jalan Besar. This opportunity presents capital upside as we expect price gap of shophouses between the city and city fringe to narrow. Furthermore, Jalan Besar has undergone significant transformation over the last few years and is home to a diverse mix of cultural, entertainment, co-living, F&B offerings, and lifestyle attractions.”
Mr Joshua Giam, Associate Director of Capital Markets, Singapore at CBRE says, “The Property has many value-add angles to maximize value. With an unutilized gross floor area of approximately 1,650 sq ft, the incoming buyer can maximize plot ratio by building a rear extension or enlarging the current floor plate. There is also potential to convert to alternative uses such as F&B, clinics, serviced apartments, co-living, hostels amongst others subject to authorities’ approval. These initiatives will allow the new owner to maximize rental returns and capital value of the Property.
255 Jalan Besar enjoys seamless connectivity to other parts of Singapore via private and public transportation. It is within short walking distance to Jalan Besar MRT Station (DT22) and Farrer Park MRT Station (NE8).
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 are the sale terms for 255 Jalan Besar?
The three-storey freehold shophouse is being offered through a public tender, with a guide price of S$22 million. The tender was scheduled to close on 30 November 2023 at 12pm. The release says both local and foreign buyers are eligible to purchase the commercial property, and that Additional Buyer’s Stamp Duty and Seller’s Stamp Duty do not apply.
What development potential does the Jalan Besar shophouse have?
The property has an existing gross floor area of about 7,750 sq ft and a reported development baseline of 9,435 sq ft. The release describes possible expansion through a rear extension or a larger floor plate, subject to approval by relevant authorities. It also says alternative uses could include food and beverage premises, clinics, serviced apartments, co-living or hostels, subject to approval.
What does freehold mean for a property buyer?
Freehold generally means ownership of the property is not limited to a fixed lease term. It does not, by itself, guarantee that a building can be altered or used in any particular way; planning rules, conservation requirements and approvals may still apply.
What is a public tender in commercial property sales?
A public tender is a sale process in which interested buyers submit offers by a stated deadline, usually under specified submission rules. The seller reviews the offers and may decide whether to accept one. A guide price can indicate the seller’s expectations, but it is not necessarily the final sale price.
SEC filings
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