Two Tras Street conservation shophouses on sale for $22.6m

Two conservation shophouses in Tanjong Pagar have been put up for sale by the same owner in an expression of interest exercise.

The three-storey leasehold commercial properties, which are in Tras Street but are not adjacent, have a guide price of $22.6 million, or about $2,800 per square foot based on gross floor area.

They have been extensively renovated and are fully occupied, with food and beverage tenants on the first floors and a serviced apartment operator leasing the upper floors, said marketing agent JLL yesterday. It added that the properties can be bought individually or together, but did not identify the specific shophouses up for sale, citing instructions from the owner.

The smaller of the two, which has a land area of 1,298 sq ft and a floor area of 3,852 sq ft, has a price tag of $10.8 million. The other, with a land area of 1,494 sq ft and a floor area of 4,218 sq ft, is going for $11.8 million.

Mr Clemence Lee, associate director of capital markets at JLL, said in a statement that the firm expects strong interest from parties such as boutique real estate funds and family offices.

“With competing shophouses in the market offering yields of only around 2 to 2.5 per cent, the two shophouses in Tras Street offer investors an exceptional opportunity to acquire two beautifully restored trophy assets which are stabilised at a high 3.5 to 3.8 per cent yield,” he added.

The expression of interest exercise closes on Nov 1 at 3pm.

Source: Straits Times Annabeth Leow