One of the largest available retail units in Lucky Plaza goes up for sale

SINGAPORE, October 1, 2024 – As the exclusive marketing agent, JLL (NYSE: JLL) has put up a freehold retail unit in Lucky Plaza for sale. Located at the corner of the 6th storey, the unit has an indicative price of S$32 million.

The 8,848 square feet (sq ft) retail unit, which is the third largest within Lucky Plaza, has a strata area of about S$3,617 per sq ft. The unit possesses prominent shop frontages and occupies a strategic location while also having direct lift and escalator access positioned right in front of the unit. The entire premises are currently leased out to two separate retail operators and will be sold with existing tenancies.

“There are only three such units that are above 8,000 sq ft in size within the entire development, and these assets are rarely traded. With its sheer size, the unit offers the flexibility to potentially subdivide the space further into smaller units. This is made easier with its wide frontage which allows multiple entrances to be created for different tenants,” notes Terry Wong, Senior Director of Capital Markets at JLL.

“Subject to approval from relevant authorities, converting the space for alternative uses such as F&B or medical use can also provide significant upside, as these uses tend to command higher rents and provide a more stable long-term income stream,” said Wong.

Well-known Orchard Landmark

Situated along the bustling Orchard Road shopping belt at the heart of District 9, Lucky Plaza is a 30-storey freehold mixed-use building comprising 22-storeys of apartments on top of a 6-storey retail podium including a basement. When it first opened in 1978, it was one of the largest and most expensive, fully air-conditioned multi-storey shopping centres – drawing in wealthy shoppers from Singapore and around the region.

Today, the mall continues to boast of consistently high footfall despite the presence of newer and more modern shopping malls located nearby. It is home to a wealth of food and beverage (F&B) establishments, retail shops, and medical centres. It is served by a multi-storey carpark accessible from the 4th to 8th storey, providing ample parking provision within the development. Visitors to Lucky Plaza are treated to a wide selection of shops selling perfume, cosmetics, thrift goods, Indonesian and Filipino products in addition to a variety of affordable dining options.

Lucky Plaza enjoys excellent transport accessibility and connectivity, with direct underground sheltered access to Orchard MRT station that serves both the North-South and Thomson-East Coast lines. Main arterial roads and the Central Expressway (CTE) located nearby also provide short drives away to the CBD and the rest of Singapore.

Orchard Road’s Rejuvenation

The Orchard Road precinct has come under renewed focus in recent years, with the Singapore Tourism Board (STB), Urban Redevelopment Authority (URA) and National Parks Board (NParks) announcing plans in 2019 to revitalize and strengthen the precinct’s position as a premier retail shopping and lifestyle destination. The Strategic Development Incentive (SDI) scheme was also introduced to encourage private developers to redevelop older buildings into new and innovative developments in exchange for gross plot ratio uplifts or flexibility on other development controls.

Large-scale redevelopment plans at Orchard include Voco Orchard Singapore hotel, Forum The Shopping Mall, and HPL House, which obtained approval in 2023 to be redeveloped into a mega mixed-use development with retail, office, residential, and hotel spaces via the SDI scheme.

There is also market anticipation that Delfi Orchard, which recently transacted via a collective sale for S$439 million in May 2024 to City Developments (CDL), may be redeveloped along with Orchard Hotel and Claymore Connect via the SDI scheme.

Other new projects in the Orchard precinct include new-to-market hotel brands, Singapore Edition and Artyzen Singapore, and redevelopment initiatives at The Cathay, Faber House, Ming Arcade, and Tanglin Shopping Centre, among others.

“An enhanced shopping experience can be expected upon the completion of the neighbouring developments along the Orchard Road stretch, yielding higher volumes of pedestrian traffic to the precinct in the future. This presents a rare opportunistic window for high-net-worth individuals, family offices, and business owners to acquire a prime freehold retail asset in one of Singapore’s most vibrant and dynamic areas, with various options to unlock potential value,” adds Wong.

Foreigners and entities are eligible to purchase without Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).

This opportunity is for sale by way of Private Treaty.