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Indicative price $18 million for all three units
SINGAPORE, June 27, 2017 – JLL, as exclusive marketing agent, is inviting offers through a Tender exercise for the purchase of three adjoining freehold ground floor retail strata units located at Lucky Plaza, an iconic shopping mall situated along the Orchard Road shopping belt.
Built in the 1980’s, Lucky Plaza is a freehold mixed-use development consisting of a seven-storey retail podium and a 30-storey residential block. Given its strategic location along Orchard Road, the development enjoys high shopper footfall to the mall, as well as shopper traffic spill from neighbouring shopping malls such as Tangs, Paragon, ION Orchard, Ngee Ann City and Wisma Atria. With over 500 retail shops, Lucky Plaza boasts of a myriad of affordable retail and food & beverage (F&B) offerings. It is conveniently connected to the Orchard MRT station via a pedestrian underpass.
Prominently located on the ground floor of Lucky Plaza, the Subject Property consists of three adjoining retail units (#01-95: 388 sq ft, #01-96: 409 sq ft, #01-97: 764 sq ft) with total strata area of 1,561 sq ft. The strata retail units are being offered for sale with vacant possession. The units are to be sold collectively. Whilst the units are approved for “Medical Centre” use, change of use to “Restaurant” or “Retail” may be considered, subject to approval from the relevant authorities. The units are well equipped with water and drainage point fit for F&B use.
The three units occupy a prime location next to the side entrance of Lucky Plaza and directly fronting the escalator linking Basement 1 and Ground floor. The units possess a prominent main road frontage facing Mount Elizabeth Road, presenting the new owner or tenant an excellent marketing avenue.
As Singapore’s prime shopping belt, constant efforts are undertaken by the Government to maintain a competitive retail landscape in Orchard Road. In recent years, there have been several government initiatives introduced to inject more vibrancy into the district. For example, ‘Pedestrian Night on Orchard’ was introduced, whereby a stretch of Orchard road will be open to pedestrians for various activities on the first Saturday of every month.
In recent statements by the Minister for Trade and Industry, Mr. S. Iswaran, it was announced that the government is “looking into ways to remake Orchard Road, to transform the precinct into a distinctive and vibrant shopping and lifestyle destination that offers a signature street experience within a city garden”.
In the short term, the plans will explore ways to “refresh the Orchard Road streetscape, to make it more pedestrian-friendly and conducive for street-level activities”. Currently, the Government is studying the reclamation of one lane along Orchard Road to improve pedestrian experience and support more pop-up concepts and events. In the longer term, the government has mentioned the possibility of exploring a fully pedestrianised Orchard Road, creating a “multi-purpose space where diverse and large-scale experiential concepts can be introduced”.
Mr. Clemence Lee, Senior Manager, Capital Markets, JLL comments: “Singapore’s Orchard Road is world-renowned. Commercial freehold properties in this district, especially ground floor units, are tightly held and rarely made available for sale. We expect strong interest from astute owner-occupiers in trades, such as medical practitioners, F&B operators and retailers, as well as investors such as family offices and High Net Worth Individuals (HNWIs).
With the changing landscape of the Orchard Road retail scene and constant efforts made by the Government to revitalise the area, investors can anticipate capital appreciation in the near term, especially considering the scarcity of such prime ground floor strata assets.”
Previous transactions in Lucky Plaza include two ground floor units sold in 2015 and 2014 at $10,098 per sq ft and $10,485 per sq ft respectively.
The indicative guide price for the Subject Property is in the region of $18 million, which reflects about $11,531 psf on the existing strata area.
As the Property sits on land zoned for commercial use, foreigners are eligible to purchase the Property. There is no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the Property.
The Public Tender exercise closes on Thursday, 3rd August, 2017 at 3pm.
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Note to editors:
1. A high-resolution photograph of Lucky Plaza is available here.
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