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Indicative price in the region of $78 million
SINGAPORE, 2 November 2015 – JLL is the exclusive marketing agent for the sale of Hersing Centre, a prominent 3-storey commercial property Singapore building with a mezzanine level , located at 450 Lorong 6 Toa Payoh.
Strategically located in the heart of the bustling Toa Payoh Central, opposite HDB Hub and Toa Payoh MRT Interchange, the property sits on a land area of approximately 14,988 sq ft and has a gross floor area of approximately 44,411 sq ft. It is held under 99-year leasehold tenure and the eventual owner will have naming rights to the property. Under the 2014 Master Plan, the property is zoned for "Commercial" use.
Formerly known as Toa Payoh Entertainment Centre, the property used to be operated as a cinema by Eng Wah before it was bought by Hersing Corporation in 2011 to house its real estate agency business. Three of the cinema halls have since been converted to office space and the remaining halls are used as auditoriums. The building boasts a strong tenant list including well known F&B tenants such as the Michelin-starred Tim Ho Wan, Soup Restaurant, Sakae Sushi and Subway, located on the first and second levels, and office tenants such as Hersing Corporation, Western Union and PropNex International on the upper levels.
Being located in a mature housing estate the subject property benefits from positive population demographics. There is a resident population of circa 125,000 residents and large working population based out of HDB Hub and surrounding offices. Hence the subject property enjoys high footfall. The Toa Payoh MRT station and bus interchange is located just 200 metres way, making the development easily accessible to commuters via public transportation. Its city fringe location also makes it a mere 15-minute drive to the Central Business District and Orchard Road shopping belt. The property is also easily accessible to other parts of Singapore via Pan Island Expressway (PIE) and Central Expressway (CTE).
The locational benefits of Toa Payoh can be clearly seen when a 99-year leasehold residential site located at the junction of Lorong 6 and Lorong 4 Toa Payoh attracted a total 14 bids during a government land sale tender in June this year, despite sluggish new-home sales.
Mr Anthony Barr, Regional Director, Capital Markets, JLL said "Well-located commercial assets in established suburban locations like Toa Payoh rarely become available for sale. They are tightly held and highly sought after by investors due to the strong rental growth and high occupancy levels achieved. This is a rare opportunity for investors or end-users to acquire an en bloc retail building in a mature residential estate with high foot traffic."
"We expect strong interest from investors such as private real estate funds, family offices and high-net-worth individuals (HNWIs) who can add value by reconfiguring space within the building and improving the existing tenant mix to increase the existing property yield. The opportunity is also suitable for end-users with a requirement for retail and or office" he added.
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 $78 million which translates to about $1,750 psf on the total gross floor area.
JLL is inviting offers for the purchase of 450 Toa Payoh Lorong 6 through an Expressions of Interest (EOI) exercise, which closes on Friday, 27 November 2015 at 3pm.
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Note to editors:
A high resolution of 450 Lorong 6 Toa Payoh is available here.
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