JLL markets freehold commercial corner shophouse in Kampong Glam

SINGAPORE, 6 FEBRUARY 2024 – A corner conservation shophouse at 731 North Bridge Road is up for sale with an indicative price of $20.8 million according to JLL (NYSE: JLL), the appointed marketing agents for the property. This translates to $5,021 per square feet (psf) based on the approximate built-up area of 4,143 square feet (sq ft).

The three-storey shophouse with a mezzanine level sits on a site with freehold tenure and occupies a land area of about 1,456 sq ft. Under the URA’s Master Plan 2019, the shophouse is zoned for commercial use and falls within the Kampong Glam Conservation area, in District 7.

The property is positioned at the intersection of North Bridge Road and Jalan Pisang, possessing prominent dual road frontages which provides maximum visibility for naming and signage rights. It is easily accessible from Bugis MRT interchange station via a short walk. Parking is also available in the immediate vicinity.

Immediate Rental Income with Potential for Rental Reversion

The property is fully leased to a single tenant, allowing the incoming investor to enjoy immediate rental income. The tenant operates a café on the ground floor, known as Bana Bana café, serving traditional Malay and halal-certified Western comfort food, whereas the upper floors are utilized for the tenant’s own office.

“If preferred, prospective investors may consider a change of use to accommodate other usages, such as co-working, co-living, hostels, subject to approval from the relevant authorities, potentially unlocking further value for the asset and benefitting from positive rental reversion,” says Terry Wong, Senior Director, Capital Markets, JLL Singapore.

Vibrant, Heritage, and Lifestyle Precinct

The shophouse is situated within a historic enclave which was home to the Malay, Arab and Bugis ethnic communities during Singapore’s colonial era. Designated as a conservation precinct since 1989, the area is highly popular with locals and tourists. It is known for its captivating heritage charm and eclectic mix of both traditional and trendy modern retail boutiques, cafes, restaurants, and entertainment offerings.

Key landmarks within the precinct include Masjid Sultan which is located just across the road from the property, and the Malay Heritage Centre which sits on the grounds of the former Istana Kampong Glam. Both landmarks are gazetted national monuments and frequently draw large crowds of visitors.

In recent years, regional and international brands have started to take up spaces within shophouses in Kampong Glam. International Japanese specialty coffee chain brand, % Arabica from Kyoto, opened their first Singapore outlet in 2019 along Arab Street. Taiwanese bubble tea brand, Machi Machi, also opened their first Singapore outlet in 2020 along the same street. Hong Kong-based lifestyle rental accommodation provider, Weave Living, opened their 65-room co-living facility within 17 repurposed adjoining shophouses along Jalan Sultan in March last year – their first Singapore property.

Other prominent establishments in the Kampong Glam area include Blu Jaz café, a stalwart at Kampong Glam since 2006, and Michelin Bib Gourmand awarded restaurants like Hjh Maimunah and The Coconut Club.

Urban Revitalization and Growth

District 7 has undergone massive transformation in recent years, most notably with the completion of integrated developments including South Beach and DUO in 2016 and 2018 respectively. Upcoming new projects include the mixed-use developments Guoco Midtown, Shaw Tower, and The M which are slated to be completed over 2024 to 2025. Collectively, these developments will add about 1,300 new residential units, 1.2 million sq ft of Grade A office space, and 81,000 sq ft of retail space.

“The revitalization of the locale with several new projects comprising significant residential components, will increase the population of residents living in the area, and in turn provide a natural retail catchment for the commercial shops in the area. Investors will have an opportunity to ride this wave of growth and enjoy potential capital upside through the acquisition of the asset, strategically located in one of Singapore’s most highly sought-after commercial and lifestyle districts,” adds Wong.

Recent Transactions

Some notable recent transactions in the vicinity include 11, 11A and 11B Bali Lane sold for $23 million ($4,915 psf on built-up) in August 2022 and 26, 28 Haji Lane, which sold for $13.5 million ($6,750 psf on built-up) in March 2022.

Closing Information

Foreigners and entities are eligible to purchase the property. Additional Buyers’ Stamp Duty (ABSD) or Sellers’ Stamp Duty (SSD) are not applicable for such commercial assets.

JLL is marketing the property through an Expression of Interest (EOI) exercise that will close on 5 March 2024 at 3pm.