Recent retail properties put up for sale includes the 5-storey retail and entertainment centre Broadway Plaza located in Ang Mo Kio Town Centre, which will be sold through an expression of interest. The estimated price is around $65 to $70 million that would translate into a net yield of 5- 5.5%. This exercise is designated to end by Sept 6.
This plaza has a total net lettable area of 41,829 square feet, and stands on a site that has a balance lease term of around 63 years. The building is fully leased and was refurbished earlier this year. Its land area is 18,450 sq ft, and has a gross floor area of 55,351 sq ft. Its tenants include day surgery and endoscopy centre, NHG 1-Health, Ang Mo Kio Family Medicine Clinic, K Box, a childcare center, and F&B food outlets.
Property experts spoke highly of the building, citing its ‘exceptional entry yield with potential to grow current income levels’.
Another building up for sale is Upper Thomson Road’s 11,011 sq ft retail unit Thomson Imperial Court which sale will be conducted via a private treaty. Its estimated cost ranges between $22 to $23 million, working out to a net yield of 2.3%, or $1,998 to $2, 089 psf on net lettable area.
It is currently leased to supermarket chain Sheng Shiong until December 2016, with an option to renew for 3 years, by then followed by another renewal option of the same period. Recent sale transactions of retail units in the building was concluded at an average of $2,238 psf. Property researchers say that this sale provides an opportunity for investors to own a freehold property that gives strong and stable returns for the midterm.
There is potential of acquiring a larger yield through the rental of the building, done by sub-dividing the retail unit or converting into other uses – which may include F&B outlets, a childcare centre or fitness centre upon the expiry of its current lease.
Source: IPROPERTY
