Sultan Plaza Offers Rare Commercial Investment Opportunity Sale Expression Interest 39 Mil
The Sultan Plaza, located at 100 Jalan Sultan off Beach Road, is now up for sale through Expression of Interest with a guide price of $39 million. This commercial strata retail space, with a strata area of 30,946 sq ft, translates into $1,260 psf on total strata area. The net leasable area, which excludes the void space of approximately 14,000 sq ft, is close to 17,000 sq ft.
This 99-year leasehold property comprises of 211 commercial units and 33 offices, with a total of 244 strata lots spanning across nine storeys. The lease of the property began in May 1978 and has a remaining lease term of approximately 46 years. Fully zoned for commercial use, this development offers large single-floor plates with a public entertainment license, which is a unique feature in commercial buildings. This presents an exclusive opportunity for investors as big established tenants can easily take up the large units on a single floor for their businesses without having to occupy units on separate floors. Additionally, the unit has direct access to the carpark, providing a VIP experience for tenants and visitors.
Investors can expect high rental yields and strong rental demand for this development. In the last 12 months, rental data shows that commercial units in Sultan Plaza have a rental yield of 9%, which is significantly higher than that of nearby commercial properties such as City Gate (3.5%) on Beach Road and 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, a veteran with over 20 years of experience in the entertainment and nightlife business, has signed a lease with an option to extend. Vice-president of homegrown real estate agency Master Real Estate, Chai Chin Yun, believes that the tenant is likely to extend their lease.
Chai Chin Yun also notes that the anchor tenant has made significant investments of over $6 million in renovations and takeover fees, which have greatly increased the value of the property. He adds that it is rare to find large-sized public entertainment units in commercial buildings, making this one of the few available in the current market. The building is also ideal for investors who are looking for immediate rental income and those who are already investing in the entertainment industry.
Other businesses in Sultan Plaza also support the entertainment industry, such as 24/7 eateries and beauty and wellness businesses. The development is strategically located near Beach Road and North Bridge Road, both of which offer a wide range of F&B, entertainment, and lifestyle retail options, making the surrounding area vibrant and lively. The Kampong Glam Conservation Area, which is just across the street, is a popular tourist attraction that brings in high foot traffic to the area. The area also has a large residential population, with developments such as City Gate, Concourse Skyline, and Southbank Condo, contributing to the high footfall.
Sultan Plaza is well-connected to the rest of Singapore, with a bus stop just outside the building offering bus services to the north and the Downtown Core area. The nearest MRT station, Nicoll Highway on the Circle Line, is just a short walk away.
Chai Chin Yun also notes that the building has the potential for en bloc sale in the future. He cites neighbouring development, City Gate, which was redeveloped through an en bloc sale of the former commercial building, KeyPoint. Alternatively, there have been plans for Sultan Plaza, which has attempted an en bloc sale previously, to be redeveloped into a mixed-use development, subject to authorities’ approval.
The same property owner is also looking to sell his over 3,000 sq ft Bukit Timah Plaza F&B approved shop, which has en bloc potential and a rental yield of more than 4%. For investors, this presents a rare opportunity to negotiate to own both units as a bundle deal.
For more information, please contact CHAI CHIN YUN | 96303137, VICE PRESIDENT (R044875G), MASTER REAL ESTATE PTE. LTD.
Rewritten:
Exciting developments are in store for the Tampines North community, with plans for a brand new integrated lifestyle hub that will house a range of community and retail facilities. In addition, residents can look forward to the addition of new parks and the expansion of existing green spaces, providing ample opportunities for recreational activities. The upcoming Parktown Residence Tampines Avenue 11 will also be a natural and complementary addition to the thriving community.