• Newly converted Craig Road shophouses for $31 mil
Apair of conservation shophouses at 38 and 39 Craig Road is up for sale with a guide price of $31 million via an expression of interest exercise. The properties are owned by a private real estate fund and will be solely marketed by Savills Singapore.
Located within the Tanjong Pagar Conservation Area, the shophouses are situated between the Duxton Hill and Keong Saik areas. The buildings are beside the Tanjong Pagar Shake Shack outlet, a co-working space by The Working Capitol, and the upcoming mixed-use development at the former Chinatown Plaza site. The shophouses also enjoy proximity to Tanjong Pagar and Outram MRT stations, and the upcoming Maxwell MRT station on the Thomson-East Coast Line.
The three-storey shophouses sit on a combined land area of 3,726 sq ft and have an estimated built-up floor area of 9,817 sq ft. The guide price of $31 million works out to $3,158 psf based on floor area. The shophouses feature a terraced garden on the second floor, a private courtyard and an attic.
Both sites have a 99-year leasehold land tenure that started in 1989 and are zoned for Commercial use under the 2020 Master Plan. The shophouses are fully tenanted. The ground floor is occupied by Ma Cuisine, a Michelin-star restaurant, while company offices occupy the top floors. According to Yap Hui Yee, director of investment sales & capital markets at Savills Singapore, the tenancy expiry dates vary, with the shortest lease expiring in September 2021 and the longest lease set to expire in December 2022.
She adds that the ground and second floors of both shophouses come with permanent F&B usage approvals. “The second floor is currently leased as an office space, but it can be converted into an upscale restaurant with an al fresco dining concept. The terraced garden overlooks the lush greenery at Duxton Plain Park,” says Yap.
The shophouses were refurbished in 2019 and the interiors feature a modern design that complements the buildings’ ornamental exterior. High-quality materials such as marble and oak wood were used to give the interior space a contemporary and elegant look, says Yap.
“We envisaged the property to appeal to highnet-worth individuals, family offices (both local and overseas) who are looking to preserve their capital. As the properties are newly refurbished with quality finishes and modern specifications, we also expect strong interest from owner-occupiers,” she says.
The typical gross rental yield for shophouses in this area is about 2.5% for stabilised assets, which is higher than the current financing cost, says Yap.
Several shophouses in the Tanjong Pagar area have appeared on the resale market in recent months. In September, three adjoining shophouses at 8, 9, and 10 Craig Road were put up for sale for $36 million ($2,936 psf on the built-up area) and were also marketed by Savills. These properties are owned by Hong Kong-based, family-owned hospitality business Harilela Group. According to Yap, the marketing agency has entered into exclusive negotiations with a shortlisted party for the sale of the trio of shophouses.
The sale of the two shophouses at 38 and 39 Craig Road is open to foreigners and company acquisition, with no additional buyer stamp duty or seller stamp duty payable. The EOI will close on Dec 8.