Two retail units at Sim Lim Square for sale at $4.56 mil
At the upcoming auction, set to take place on March 28 at 10.30am, investors may have a chance to acquire a strata retail unit at Sim Lim Square. Those interested can contact Knight Frank at 65 6228 9188 or visit knightfrank.com.sg for more information.The upcoming auction of two retail units at Sim Lim Square on March 28th offers investors a chance to acquire a strata retail unit with potential to capitalise on an en bloc windfall, as well as generate recurring rental income. Both units are leased to an entertainment operator on a fresh three-year lease that started in February, with an option to extend for a subsequent three years.
Situated at a corner plot at the junction of Rochor Canal Road and Bencoolen Street in District 7, tech hub Sim Lim Square is a strata-titled commercial development on a 78,152 sq ft plot with a 99-year land tenure that began in 1983. Comprising of six floors and two basement levels, the property houses 492 commercial units.
Rents of the retail units at Sim Lim Square have been as high as $15.50 psf per month (pm), with an average of about $9.70 psf pm, enabling a rental yield of 4.7%. Comparatively, other surrounding 99-year leasehold commercial developments, such as Sim Lim Tower in Jalan Besar, have an average rental of $4.69 psf pm and a yield of approximately 2.6%.
Up for an owner’s sale, the two retail units of 581 sq ft and 882 sq ft respectively were first put on auction by Knight Frank on February 16. Despite the lack of a successful bidder, the two units have a total guide price of $4.56 million ($3,115 psf and $3,118 psf respectively).
The potential Champions Way Condo en bloc windfall provides a unique opportunity for investors as the units are located near Rochor and Jalan Besar MRT Stations on the Downtown Line, and Bugis MRT Interchange Station, which connects the East-West and the Downtown Lines. Additionally, the recent shifts in the retail environment and consumer preferences towards e-commerce have made the units attractive for income-generating investments.
Knight Frank will be conducting the auction on March 28th at 10.30am. Interested investors can contact Knight Frank at 65 6228 9188 or visit knightfrank.com.sg for more information.
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