A row of five conserved shophouses in the Joo Chiat Conservation Area is up for sale by expression of interest.
The adjoining shophouses have a total land area of about 7,504 sq ft. The site has a plot ratio of 3, which allows a maximum gross floor area of about 22,511 sq ft.
The vendor is a privately held investment holding firm which has held the freehold properties for more than 10 years. It is evaluating whether to sell the property in its freehold tenure, or to sell it on a 99-year leasehold basis and keep its reversionary interest after the lease expires, said marketing agent Chestertons.
“We are soliciting bids on a freehold and 99-year lease basis from prospective investors. Yield-driven investors may find the 99-year leasehold tenure more palatable,” said Mr Donald Han, managing director of Chestertons.
The vendor will decide the tenure disposal after the expression of interest closes.
It is expecting bids on a freehold basis to be more than $14 million.
Mr Han said sales activity in the area has increased of late, with more than 10 similar transactions in Joo Chiat Road since April.
The keen interest reflects its proximity to Paya Lebar, he said.
“Investors are looking for catalysts before deciding where and when to put their money.
“The Paya Lebar sub-regional centre is a compelling catalyst, where we have seen the completion and opening of OneKM Mall and Paya Lebar Square.”
Upcoming projects in the area include civic centre Wisma Geylang Serai and the large integrated development by Lend Lease and Abu Dhabi Investment Authority, which will have about 1.4 million sq ft of net lettable office and retail area, and another 440 residential units.
The expression of interest closes on Oct 8.