The retail space at Sultan Plaza, located at 100 Jalan Sultan off Beach Road, is now up for sale through an Expression of Interest (EOI) with a guide price of $39 million. The strata area of the property is 30,946 sq ft, which translates to $1,260 per square foot on total strata area. The net leasable area covers approximately 17,000 sq ft, not including the void space of 14,000 sq ft.
Situated on a 99-year leasehold land, the asset comprises of 211 commercial units and 33 offices, making up a total of 244 strata lots across nine storeys. With a lease that began in May 1978, the property has approximately 46 years left on its lease term.
One of the key features of this development is that it is fully zoned for commercial use and offers large single-floor plates with a public entertainment license. This is a rare offering in commercial buildings, presenting a unique opportunity for investors. With single floor plates, big established tenants can easily take up large units for their businesses without having to occupy units on different storeys. In addition, the unit also has direct access to the carpark, which ramps up to Level 6, providing a luxurious VIP experience for tenants and visitors.
Investors can expect high rental yields and strong rental demand for the development. Based on rental data in the last 12 months, commercial units at the property have a rental yield of 9%, which is significantly higher than nearby commercial properties such as City Gate (3.5%) on Beach Road and the adjacent Textile Centre (5.6%) on Jalan Sultan.
The Sultan Plaza commercial space will be sold with tenancy, offering investors immediate monthly rental returns. The current anchor tenant, Grand Dynasty KTV, is an experienced player in the entertainment and nightlife business with over 20 years of history. They have signed a lease with an option to extend and have invested over $6 million in renovations and takeover fees.
Vice-president of local real estate agency Master Real Estate, Chai Chin Yun, believes that the tenant is likely to extend their lease. He notes that the tenant’s significant investments have increased the value of the property and that it is rare to find large-sized public entertainment units in commercial buildings. He also adds that the Sultan Plaza building is ideal for investors looking for immediate rental income and those already investing in the entertainment industry.
To summarize, the investment potential of condos in Singapore is undeniable, offering a range of benefits such as high demand, potential for capital appreciation, and attractive rental yields. However, it is crucial to carefully consider various factors, including location, financing, government regulations, and market conditions. By conducting thorough research and seeking professional guidance, investors can make well-informed decisions and capitalize on the ever-changing real estate market in Singapore. Whether you are a local investor looking to diversify your portfolio or a foreign investor interested in a stable and profitable venture, the condominium market in Singapore, such as the ones offered by Singapore Projects, presents a compelling opportunity to achieve your investment goals.
Other businesses at Sultan Plaza such as 24/7 eateries and beauty and wellness services support the entertainment business. The surrounding area of Jalan Sultan, flanked by Beach Road and North Bridge Road, offers a diverse range of F&B, entertainment, and lifestyle retail options, adding vibrancy to the area. The popular Kampong Glam Conservation Area is just across the street, making it a tourist hotspot and bringing in even higher foot traffic.
Nearby residential developments also contribute to the high footfall in the area, such as City Gate, Concourse Skyline, and Southbank condo.
Moreover, Sultan Plaza has excellent connectivity to other parts of Singapore. A bus stop located just outside the building provides bus services to the north, such as Sembawang and Woodlands, and to Shenton Way in the Downtown Core area. The nearest MRT station, Nicoll Highway on the Circle Line, is within walking distance.
Chai also points out the future en bloc potential of the building, citing the en bloc redevelopment of KeyPoint into the mixed-use development City Gate. Alternatively, he notes that there were also plans for Sultan Plaza, which has previously attempted en bloc, to be redeveloped into a mixed-use development, pending authorities’ approval.
Additionally, the same property owner is also selling an over 3,000 sq ft F&B approved shop at Bukit Timah Plaza, with en bloc potential and a rental yield of over 4%. Investors have the rare opportunity to negotiate for both units in a bundle deal.
For more information, please contact Chai Chin Yun at 96303137, Vice-President of Master Real Estate Pte Ltd (R044875G).