CBRE has been appointed as the exclusive marketing agent for the sale of two prime properties located at Hongkong Street in the Central Business District (CBD) area.
The first property is the 27-room Hotel Clover, situated at 7 Hongkong Street, which is being offered for sale at a guide price of $27 million. The second property is a commercial building at 36 Hongkong Street, which is being marketed at a guide price of $22.6 million.
Located on a 1,701 sq ft plot of land, the six-storey boutique hotel is zoned for hotel use and has a plot ratio of 4.2 under the latest Master Plan. With a remaining land tenure of approximately 89 years, the 99-year leasehold site has a total floor area of 7,142 sq ft. At the guide price of $27 million, the price per square foot on the floor area translates to $3,780.
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The five-storey commercial building at 36 Hongkong Street sits on a 1,733 sq ft plot and is zoned for commercial use, with a plot ratio of 4.2 under the Master Plan. The 99-year leasehold site has a remaining land tenure of 93 years and has a total floor area of 7,279 sq ft. The guide price of $22.6 million translates to $3,105 per square foot. The commercial building is currently fully leased, with a bridal shop on the ground floor and offices on the upper floors.
Both properties have relatively more attractive remaining land tenures compared to the majority of other 99-year leasehold properties available for sale in the CBD area. They are also suitable for owner-occupiers looking for a flagship asset at an affordable price with naming rights for their exclusive operations, according to Clemence Lee, executive director of capital markets at CBRE Singapore.
As both properties are classified as hotel and commercial properties, foreign individuals and companies are eligible to purchase them without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) on the transactions.
Situated in Clarke Quay, a well-established riverfront lifestyle precinct, the properties are surrounded by acclaimed restaurants, bars, boutique hotels and fitness studios. They are also located near the Clarke Quay MRT Station on the North-East Line.
A $62 million asset enhancement exercise is underway for CQ@Clarke Quay, a nearby property, while the upcoming completion of two new large-scale integrated developments, Canninghill Piers and Union Square, will further enhance the vibrancy of the area, notes Lee. He adds that both 7 and 36 Hongkong Street offer excellent potential for future rental growth and capital appreciation in the medium to long term.
The expression of interest exercise for both properties will close on March 26. Make sure to check out the latest listings for Commercial Real Estate properties on Ask Buddy to make the most informed decision for your investment.