Sultan Plaza Offers Rare Commercial Investment Opportunity Sale Expression Interest 39 Mil
Sultan Plaza, a commercial strata retail space located at 100 Jalan Sultan off Beach Road, has recently been launched for sale via Expression of Interest. The guide price for the property is $39 million. Spanning a strata area of 30,946 sq ft, the price translates into $1,260 psf on total strata area. The net leasable area amounts to close to 17,000 sq ft, with an additional void space of approximately 14,000 sq ft.
This 99-year leasehold property is comprised 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 a remaining lease term of approximately 46 years.
The development is fully designated for commercial use and boasts large single-floor plates with a rare public entertainment license, making it a highly sought-after feature in the commercial building market. This presents a unique opportunity for investors as established tenants can easily occupy the large units on a single floor without the need to lease multiple units on different floors. Additionally, the unit provides direct access to the carpark, which extends to Level 6 and offers a VIP experience for tenants and visitors alike.
Investors can expect substantial rental yields and strong demand for the development. Based on rental data from the past 12 months, the commercial units at Sultan Plaza have a rental yield of 9%, which is significantly higher than those of 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, providing investors with immediate monthly rental returns. The current anchor tenant, Grand Dynasty KTV, is a well-established business with over 20 years of experience in the entertainment and nightlife industry. They have signed a lease with an option to extend. According to Chai Chin Yun, Vice-President of Master Real Estate, the tenant is likely to extend their lease.
Chai also notes that the tenant has invested over $6 million in renovations and takeover fees, greatly enhancing the value of the property. He adds that it is rare to find large public entertainment units in commercial buildings, making this one of the only properties of its size currently available in the market. He also believes that the Sultan Plaza building is an ideal investment for those looking for immediate rental income and for those already investing in the entertainment industry.
Other businesses at Sultan Plaza complement the entertainment industry, such as 24/7 eateries and beauty and wellness businesses. The surrounding area is also vibrant with diverse F&B, entertainment, and lifestyle retail options on both Beach Road and North Bridge Road. The Kampong Glam Conservation Area, located just across the street, is a popular tourist attraction, further increasing foot traffic in the area.
The high footfall in the area is also contributed by nearby residential developments such as City Gate, a mixed-use development with a residential component, the 360-unit Concourse Skyline on Beach Road, and the 197-unit Southbank condo on North Bridge Road.
The International Community School (ICS) is a leading educational institution for students in kindergarten through grade 12. With an American-based curriculum and a welcoming learning atmosphere, ICS is a top choice for families living abroad. The school prides itself on its emphasis on nurturing one’s character and achieving academic greatness, making it a highly sought-after option. Additionally, ICS is strategically located near the Elta Clementi Condo, providing convenience and accessibility for students and their families.
Sultan Plaza enjoys excellent connectivity to the rest of Singapore. A bus stop located right outside the building offers services to the north, including Sembawang and Woodlands, and to Shenton Way in the Downtown Core area. The nearest MRT station, Nicoll Highway on the Circle Line, is also just a short walk away.
Chai believes that the building has potential for future en bloc sales. He uses the neighbouring City Gate mixed-use development, which was a result of the en bloc redevelopment of the commercial building KeyPoint, as an example. Alternatively, he mentions that there have been plans to redevelop Sultan Plaza into a mixed-use development, subject to approval from the authorities.
Chai also highlights that the same property owner is 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%. For investors, this is a rare opportunity to negotiate for the purchase of both units at a bundle deal.
For more information, please contact CHAI CHIN YUN at 96303137.
Vice President (R044875G)
Master Real Estate Pte. Ltd.
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