The Lavender Collection launched for sale
A portfolio of 32 freehold city-fringe shophouses with development potential up for sale
SINGAPORE, 4th September 2019 – JLL, as the exclusive marketing agent, is proud to present for sale The Lavender Collection, a highly anticipated portfolio of 32 prime city-fringe freehold shophouses with development potential.
The Lavender Collection consists of 32 freehold shophouses located along Lavender Street and Serangoon Road. The shophouses have a combined land area of circa 49,244 sf and estimated gross floor area (GFA) of circa 79,502 sf. Under the Master Plan 2019, the site is zoned “Commercial” with a gross plot ratio of “3.0” and is located within the Jalan Besar Secondary Settlement conservation area. The Portfolio commands excellent visibility and benefits from a combined main road frontage of over 300-metres.
The Lavender Collection is highly accessible, being strategically located within a short walking distance from Boon Keng MRT station, Bendemeer MRT station and Farrer Park MRT station. Located within a short 10-minute drive of the Central Business District (CBD) and Orchard Road, the site is also easily accessible via the Pan Island Expressway (PIE) and Central Expressway (CTE).
Jalan Besar, which signifies “main road” in Malay, was one of the earliest areas to be developed in Singapore. Due to its rich heritage, Jalan Besar was granted conservation status in 1991. Today, the city-fringe locale has transformed into a bustling commercial and medical hub supported by a myriad of trendy F&B and lifestyle offerings. Major commercial developments in the area include Aperia, Arc 380, CT Hub, Connexion and City Square Mall. The area is presently undergoing rejuvenation with several new developments underway. These include Centrium Square, a 19-storey commercial development comprising of retail, medical suites and office space as well as Uptown @ Farrer, a mixed-use development by Low Kheng Huat that consists of retail, residential and serviced apartments.
Nearby, the Urban Redevelopment Authority (URA) has recently marked the Kallang River precinct as a key growth area. Key initiatives include the injection of new residential precincts at Kampong Bugis and Kallang Airport area, renewing of old industrial estates, introduction of more sporting and community facilities as well as enhanced accessibility.
Mr. Clemence Lee, Senior Director, Capital Markets, JLL, said: “With prices of CBD shophouses rising over the last 2 years, we are noticing that investors are starting to divert their attention to city fringe shophouses instead as prices have yet to catch-up and rental yields are comparatively higher. The launch of The Lavender Collection is timely and we expect strong interest from developers, real estate funds, family offices and local companies during the Public Tender exercise.
With the portfolio being located within the Jalan Besar Secondary Settlement conservation area, there is opportunity for the new owner to construct a 6-storey rear extension at the back of the shophouses to double the portfolio’s GFA to 147,732 sf, subject to approval by the relevant authorities. After which, the new owner can either sell the shophouses on an individual basis or hold the entire portfolio for long-term income.
An enquiry on the Development Baseline Record for one of the shophouses was submitted. It found that the development baseline is high, reflecting a plot ratio of 3 under Use Group A. Assuming the same outcome for all 32 shophouses, no development charge is payable should prospective purchasers wish to maximise the portfolio’s GFA.”
The guide price for The Lavender Collection is $138 million reflecting $1,736 psf on estimated GFA or around $934 psf ppr assuming no development charge payable.
There is no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the Portfolio.
The Lavender Collection is for sale via a Public Tender exercise that closes on Wednesday, 16th October 2019 at 3pm.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of nearly 92,000 as of June 30, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com