-- 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.
