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News Release

Singapore

Freehold Conservation Shophouses along Geylang Road Up for Sale

Indicative price in the region of $28.8 million


​SINGAPORE, 30 September 2015JLL is the exclusive marketing agent for the sale of 236 to 244 Geylang Road, a prominent freehold development comprising of a row of five adjoining 3-storey conservation shophouses.

Sitting on a land area of approximately 7,411 sq ft, with built-up area of approximately 21,349 sq ft and seven carpark lots, the property is held under a single title, with naming rights to the eventual owner. The building is currently multi-tenanted – with an eating house, a Chinese restaurant and a provision shop on the ground floor, and office and association on the upper floors. Under the 2014 Master Plan, the site is zoned "Commercial" under the Secondary Settlement (Geylang) Conservation Area.

Located along the bustling main Geylang Road, the corner building commands a prominent 32-metre frontage with excellent visibility. The surrounding vicinity includes an eclectic mix of eateries, karaoke lounges, clan associations and temples, amongst other commercial activities. Aljunied MRT Station is just a short walk away and bus services are also conveniently located along Geylang Road. With its city fringe location, the property is a mere 10 minutes' drive to the Central Business District (CBD) and is also easily accessible to other parts of Singapore via Pan Island Expressway (PIE), Kallang-Paya Lebar Expressway (KPE) and Nicoll Highway.

Geylang Road is well-known in Singapore as one of the go-to places for authentic local fare. Some of the famous restaurants and eateries include No Signboard Seafood Restaurant, Yong He Eating House, Geylang Beef Kway Teow, 126 Pau Tim Sum, Rochor Beancurd, Eminent Frog Porridge and Geylang Claypot Rice. Complementing this is a slew of new upmarket eateries and bars such as Char Restaurant, The Tuckshop, The Ranch Café and Brawn & Brains, which have been setting up shop in the area.

The Geylang district is strategically located in-between two growth clusters outlined by the Urban Redevelopment Authority's 2008 Master Plan, namely the Paya Lebar Sub-Regional Centre and the Kallang Riverside precinct. The Paya Lebar Sub-Regional Centre is one of the new commercial hubs to be developed outside the city centre, as part of the Urban Redevelopment Authority's (URA) larger decentralisation strategy which will feature retail, hotel and office developments clustered within the area. The Kallang Riverside Lifestyle Precinct is a 64-ha lifestyle area offering new residential, hotel, office, retail and entertainment facilities.

The property is also located directly in front of the area bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang which has been recently rezoned by URA from the 'Residential/ Institution' to a new 'Commercial/ Institution' zoning. 

Mr Clemence Lee, Manager, Capital Markets, JLL said, "This offering provides an opportunity for both investors and owner-occupiers to acquire a freehold commercial asset located in an area slated for commercial transformation. With the site strategically situated between the Paya Lebar Sub-Regional Centre and Kallang Riverside Lifestyle Precinct and the rezoning taking place in the area, the property can expect to enjoy strong capital upside from the spillover of commercial activities from the neighbouring precinct and the gradual transformation of the area in the mid to long term."

 "The property will appeal to owner occupiers, such as small & medium-sized enterprises (SMEs), retailers and F&B operators, who are looking at more affordable rentals while still being located near the city centre. We also expect strong interest from investors such as private real estate funds, family funds and high-net-worth individuals (HNWIs) who are looking to purchase the property for investment purposes. Investors looking to value-add would be able to enhance the property by doing internal refurbishment works and by improving the existing tenant mix so as to increase the existing property yield," he added.

"With the announcement of the rezoning of area bounded by Geylang Road, Lorong 22 Geylang, Guillemard Road and Lorong 4 Geylang, we have started to see an increase in interest and buying momentum for shophouses in the Geylang area, with 11 transactions this year to date in comparison to seven in 2014."

As the property sits on land zoned for commercial uses, foreigners are eligible to purchase the property. There is also no Additional Buyer's Stamp Duty (ABSD) or Seller's Stamp Duty (SSD) imposed on the purchase of the property. 

The indicative price for the property is in the region of $28.8 million which translates to about $1,350 psf on the total built-up area.

JLL is inviting offers for the purchase of 236 to 244 Geylang Road through an Expression of Interest (EOI) exercise, which closes on Wednesday, 4 November 2015 at 3pm.

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Note to editors:

1.       A high resolution of 236 to 244 Geylang Road is available here.