Sultan Plaza, located at 100 Jalan Sultan off Beach Road, has launched its commercial strata retail space for sale via Expression of Interest with a guide price of $39 million. The strata area of 30,946 sq ft translates to a price of $1,260 psf on the total strata area. The net leasable area is approximately 17,000 sq ft, with an additional void space of 14,000 sq ft.
This 99-year leasehold asset comprises of 211 commercial units and 33 offices, totaling 244 strata lots across nine storeys. With a lease starting in May 1978, the property has a remaining lease term of approximately 46 years. Fully zoned for commercial use, the development boasts large single-floor plates and a rare public entertainment license, providing unique opportunities for investors. Large established tenants can easily take up the large units on a single floor, without having to occupy units on separate levels. The unit also offers direct access to the carpark, which ramps up to Level 6, providing a VIP experience for tenants and visitors.
Investors can expect high rental yields and strong rental demand for the development. Based on rental data from the last 12 months, commercial units at the property have a rental yield of 9%, significantly higher than nearby commercial properties such as City Gate (3.5%) and Textile Centre (5.6%). The commercial space at Sultan Plaza will be sold with tenancy, providing immediate monthly rental returns. The current anchor tenant, Grand Dynasty KTV, has a lease with an option to extend and has invested over $3 million in renovations.
When considering investing in a condominium, it is crucial to also assess the potential rental yield. The rental yield is the annual rental income as a percentage of the property’s purchase price. It is important to note that in Singapore, the rental yields for condos can vary significantly, depending on factors such as location, property condition, and market demand. Areas with high demand for rentals, such as those near business districts or educational institutions, typically offer better rental yields. Therefore, conducting thorough market research and consulting with real estate agents can provide valuable insights into the rental potential of a specific condo. Additionally, you can also explore the potential of new condo launches by visiting New Condo Launches, which can offer even more opportunities for rental income.
According to Chai Chin Yun, Vice President of Master Real Estate, the anchor tenant is likely to extend their lease. He notes that the tenant has already made significant investments in renovations and takeover fees, adding value to the property. Furthermore, with public entertainment units of this size being rare in commercial buildings, this may be the only one currently available in the market. Chai also highlights the potential for future en bloc sales. The neighboring City Gate mixed-use development, formerly KeyPoint, was an en bloc redevelopment. Alternatively, Sultan Plaza itself has previously attempted an en bloc sale and could potentially be redeveloped into a mixed-use development, pending approval from authorities.
Sultan Plaza is well-connected to the rest of Singapore, with a bus stop just outside the building offering services to the north and to the Downtown Core area. The nearest MRT station, Nicoll Highway on the Circle Line, is just a short walk away. Chai also notes that the same property owner is also looking to sell his over 3,000 sq ft F&B approved shop at Bukit Timah Plaza, which has en bloc potential and a rental yield of over 4%. This presents a rare opportunity for investors to negotiate to own both units as a bundle deal.
For more information, contact Chai Chin Yun at 96303137, Vice President (R044875G) of Master Real Estate Pte Ltd.