Skip Ribbon Commands
Skip to main content

News Release

Singapore

Rare Tampines Coffee Shop Up for Sale




SINGAPORE, 21 AUGUST 2013 – A Housing Development Board (HDB) shop with living quarters located at Tampines Street 91 has just been offered for sale by public tender. The space is currently being used as an eating house, commonly referred to as a ‘coffee shop’.

The property is located at the corner of Block 915 and has a good road frontage onto Tampines Street 91. It is less than 400 metres to the future Tampines West MRT station, which is expected to be completed in 2017.  Jones Lang LaSalle has been appointed to manage the tender exercise.

“There are a limited number of coffee shops being transacted, partly due to the relatively low supply of such properties. According to a statement made by the Ministry of National Development earlier this month, there are 714 eating houses in HDB estates, of which 429 are sold and 285 are on rental by HDB. Over the past three years, there was only an average of 33 HDB eating houses that changed hands,” said Mr Karamjit Singh, Head of Investments and Residential at Jones Lang LaSalle.

He added: “In Singapore, the entry-level food and beverage business is effectively recession-proof given our unique demographic profile where, in a typical household, both parents tend to hold full-time jobs. As a result, they tend to rely on coffee shops, hawker centres and food-courts for meals, at times more than cooking at home. Furthermore, neighbourhood coffee shops have an important role to play in our social fabric, not just as a basic eatery, but also as a place for social gatherings, where families, friends and communities bond over food, drinks, and even football matches.”

The coffee shop in question has a strata floor area of 450 sqm, or about 4,844 sqft. It comprises a shop space of approximately 4,058 sqft on the ground floor, with an additional 786 sqft of living quarters on the second level. It is owned by a family and is currently tenanted until 2015. Approval was granted for an additional Outdoor Refreshment Area of about 969 sqft.

“We understand that although this property has living quarters attached to it, HDB’s prevailing policy is that properties of such nature are sold or tenanted out as a commercial property under a single title. Purchasers are not limited to Singaporeans or Singapore Permanent Residents. Foreigners or companies may also purchase the property,” said Mr Singh.

“The vendors are expecting offers in the region of $10 million to $12 million for the property. Investors who are interested in a stable investment would find it a worthwhile buy. If managed well and with a bit of repositioning, the property could be a quality asset with a steady income stream and yet have potential for rental appreciation.”

Just a little over a month ago, the sale of a similar-sized HDB coffee shop in Hougang made headlines for its record-breaking sale price of $23.888 million or about $5,930 psf.

“Tampines is an established housing estate with a large catchment of residents. It is estimated that there are more than 4,000 HDB flats located within a 350-metre radius of the block. Patrons could include local resident households, as well as those who frequent the schools and offices in the neighbourhood,” added Mr Singh.

The tender is scheduled to close at 2.30 pm on Thursday, 26 September 2013.

– ends –

Notes to editors

1.    Please contact Vivian Lim at 6494 3824 or vivian.lim@ap.jll.com should you require a high resolution image.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more than 1,000 locations worldwide. On behalf of its clients, the firm provides management and real estate outsourcing services to a property portfolio of 2.6 billion square feet and completed $63 billion in sales, acquisitions and finance transactions in 2012. Its investment management business, LaSalle Investment Management, has $46.3 billion of real estate assets under management.
Jones Lang LaSalle has over 50 years of experience in Asia Pacific, with over 26,100 employees operating in 79 offices in 14 countries across the region. The firm was named ‘Best Property Consultancy’ in nine Asia Pacific countries at the International Property Awards Asia Pacific 2012, in association with HSBC, and was named the number one real estate advisory firm in Asia Pacific in the Euromoney Real Estate Awards 2012. www.ap.joneslanglasalle.com 
200 East Randolph Drive Chicago Illinois 60601 │ 22 Hanover Square London W1A 2BN │ 9 Raffles Place #39–00 Republic Plaza Singapore 048619