365 views

ERA Realty puts up 23 shops for sale

The portfolio's highlight is the two HDB shops in Toa Payoh and Ang Mo Kio.

ERA Realty Network has announced the sale of 23 strata retail shops thru an expression of interest exercise. The portfolio comprises two Housing and Development Board (HDB) shops located in Toa Payoh and Ang Mo Kio and a collective of 21 strata shops found in Far East Plaza, Sims Lim Square, Peninsula Plaza, and People's Park Complex.

Potential buyers have the option to purchase the properties either individually or collectively as a portfolio.

"With about 80% of the residential population living in HDB estates and towns, the HDB shop is a familiar and essential part of everyone's life and forms the backbone of Singapore's retail scene," said capital markets and investment sales director Donald Goh.

"[The two HDB shops] are fully tenanted with an attractive weighted yield of more than 4% and we expect keen interest from family offices, private equity funds, private investors, and high-net-worth individuals who are looking for immediate rental income with the potential for capital appreciation in the mid-to-long term."

With the recent property cooling measures announced in December 2021, the sector has witnessed a shift in demand for strategically located commercial properties that promise capital appreciation potential. Based on recent reports, ERA Realty anticipates that the retail market has bottomed out of the pandemic and is on an upswing. Last year, retail sales in Singapore grew 11.1% after three straight years of decline. Hence, the group said it is the opportune time for discerning investors to put their money into commercial properties.

"The investment quantum of about $80m for the entire portfolio is palatable to the market. With the portfolio 100% tenanted, buyers can mitigate the short-term volatility while looking forward to future capital appreciation," added the capital markets and investment sales managing director, Steven Tan.

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

ION Orchard marks 15 years as a premier retail destination
The mall is proactive in conducting surveys to identify trends and optimise its tenant mix.
Retail
ION Orchard leads charge in sustainable takeaway practices
 Shoppers will enjoy discounts when they opt for a reusable mug or food container from Muuse.
Lendela on why banks need fintechs to buoy loan growth
Loan demand has doubled in Singapore, and fintechs can help onboard quality clients.