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Wed, Oct 07, 2020 – 3:07 PM
A three-story FREEHOLD conservation store, known for the popular Boon Tong Kee chicken rice restaurant located there, went up for sale with an indicative price of S $ 9.5 million.
Pricing is about S $ 2,369 per square foot based on existing total built area of 4,010 square feet (square feet), exclusive marketing agent CBRE said Wednesday.
Located at 199 East Coast Road, the store is on a wholly owned site of approximately 1,795 square feet.
The property is zoned for commercial use with a parcel ratio of 3.0 within the Joo Chiat secondary settlement, under the Urban Redevelopment Authority’s 2019 Master Plan.
The maximum gross floor area allowed is approximately 5,385 square feet, subject to approval by authorities, CBRE said.
The store house is fully rented, with the ground floor and third floor rented to the Boon Tong Kee Restaurant, which has been operating on the premises for over 15 years.
This will provide the incoming buyer with immediate rental income, CBRE said.
Alternatively, once the existing leases expire, the buyer may consider maximizing the proportion of parcels by building a rear extension to increase the floor area by 34 percent, subject to approval by authorities, he added.
No additional stamp duty will be imposed on the buyer or seller for local or foreign buyers.
Within the neighborhood, the next MRT Marine Parade station is scheduled to open in 2023. Asset improvement initiatives are also underway at the nearby i12 Katong mall, which will be completed by 2021.
Other commercial developments near the property include the Katong Point and Parkway Parade shopping centers. There is also a large residential catchment in the Marine Parade urbanization.
CBRE’s senior director of capital markets, Clemence Lee, said there has recently been a surge in interest in commercial homes in the East Coast area.
This could be because nearby food and beverage outlets and retail businesses are doing well, with more people frequenting the neighborhood more frequently while working from home, Lee added.
“The area is expected to become even more dynamic once rejuvenation activities are completed,” he noted.
Similar properties sold in the vicinity included 139 East Coast Road, which traded last month for S $ 6.6 million, according to Lee. A row of three business locations at 101-105 East Coast Road also changed hands recently, at S $ 14 million, he said.
The sale of 199 East Coast Road will take place through an expression of interest exercise, which closes at 3 p.m. on November 12.
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