Business

11 shops in Sim Lim Square up for sale at $22 million

Eleven shops in Sim Lim Square have gone on the market after the tech mall's second bid to sell en bloc failed to attract buyers.

The collective sale tender closed on Dec 30 with no formal bids, much like its first attempt in July last year.

Some shop owners decided they had waited long enough and took matters into their own hands with 11 shops now up for sale via expressions of interest for a combined $22 million.

The shops, which can be bought collectively or as individual units, face the central podium on the fifth level.

The last three transactions for such units achieved prices of around $5,000 per sq ft, said sole marketing agent Knight Frank Singapore.

Since this is a commercial property, the sale is open to both locals and foreigners, with no additional buyer's stamp duty and seller's stamp duty imposed on the purchase.

The sale exercise closes at 3pm on Feb 1. Owners at the strata-titled mall had been optimistic that their second attempt to sell en bloc would get results.

They kept the reserve price unchanged at around $1.25 billion but with the added sweetener of a further 27 per cent of built-up space plus the possibility of lower development charges.

Mr Francis Tan of consultancy SLP Scotia, the mall's marketing agent, said the owners felt they had to make a second attempt - "one final push before expiry of the collective sale agreement in March 2020".

Sim Lim Square was built in 1985 and sits on a 99-year leasehold site of 78,152 sq ft. The 492 commercial units are spread out over six storeys and two basements levels.

The plot - beside Rochor MRT station - is fully zoned for commercial use, so there was no mandatory requirement to top up the lease, which has 63 years left.- THE STRAITS TIMES

Property