A set of two contiguous strata retail units located in Peninsula Plaza has recently been put up for sale with an asking price of $10.9 million. These leasehold units, which come with a 999-year tenure, are situated on the ground floor and boast a highly visible frontage along North Bridge Road.
One of the units has a strata area of 538 square feet, while the other covers 581 square feet, bringing the total strata area to 1,119 square feet. Therefore, the asking price of $10.9 million equates to a rate of $9,741 per square foot based on the strata area.
Currently, the units are leased out until 2026. With the guide price of $10.9 million, investors can expect a gross rental yield of 3%.
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“The two units are arguably the most prime units within the development, benefitting from a strong daily footfall,” says Nick Chan, associate director of investment sales & capital markets at Savills Singapore, who is responsible for the sale of these units on a private treaty basis.
Completed in 1980, Peninsula Plaza is a 999-year, 30-storey mixed-use commercial building that consists of a six-storey retail podium and a 24-storey office tower. Standing tall with its prominent frontages along North Bridge Road, Coleman Street, and Coleman Lane, it also offers a direct link to the City Hall MRT Interchange Station, making it highly accessible.
The last transaction for a ground-floor retail unit was recorded in August 2022, when a 452 square feet unit was sold for $4.08 million, working out to be $9,025 per square foot based on the caveat lodged at that time.
Since the Urban Redevelopment Authority (URA) imposed restrictions on the strata subdivision of new commercial properties in the CBD and Orchard corridors in March 2022, Chan from Savills states that there has been a growing demand for strata-titled units, particularly those with a 999-year or freehold tenure.
With a covered walkway that leads directly to the City Hall MRT Interchange Station, which serves the East-West and North-South lines, Peninsula Plaza continues to be highly sought after by both investors and buyers alike.