Friday, May 25, 2012

Six People's Park shops up for sale for $36-38m

Business Times: Wed, May 23
SIX adjoining ground-floor strata shop units at People's Park Complex have been put on the market with an indicative price of $36-38 million or about $4,960-5,240 per square foot based on their total strata area of 7,254 sq ft.

The six units have been subdivided for leasing purpose into 33 units of which 29 units are currently leased out. Leases on the other four units expired recently and the units have been deliberately kept vacant to give the new owner more options.

Based on the current rental income of the 29 leased units, the net property yield works out to 4.4 per cent based on a price of $36 million. Assuming all 33 units are leased out, the net yield would rise to about 4.8 per cent, according to Donald Han, special adviser at HSR, the sole marketing agent appointed by the seller, WF Group. The company is a low-profile property investment outfit.

The expression of interest for the sale of the six units closes on June 13. One end of the string of six units faces the taxi stand (along Park Crescent) and car park entrance, while the other faces a busy ground-floor concourse in the development.

The latest transaction in the building was a ground-floor unit of about 291 sq ft that changed hands for $8,946 psf last month. That unit is at the rear of the building, close to the People's Park Food Centre.

People's Park Complex, which is on a site with a remaining lease of about 55 years, is a mixed development near Chinatown MRT Station.

HSR is pitching the six units as an investment in prime retail space for rental returns. "Alternatively this investment would also appeal to end users looking for large prominent ground-floor retail space in the location," said Mr Han...
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