CBRE is currently the sole marketing agent for the sale of two prime properties in Singapore’s central business district (CBD). The 27-room Hotel Clover at 7 Hongkong Street is being offered for sale with a guide price of $27 million, while a nearby commercial building at 36 Hongkong Street is also up for sale with a guide price of $22.6 million.
The boutique hotel is spread over six stories and is situated on a 1,701 square foot plot of land. It is zoned for hotel use and has a plot ratio of 4.2 according to the latest Master Plan. The property has a remaining leasehold of 89 years and a total floor area of 7,142 square feet. With a price tag of $3,780 per square foot (psf) of floor area, this presents a prime investment opportunity for potential buyers.
On the other hand, the commercial building at 36 Hongkong Street sits on a slightly larger plot of 1,733 square feet. It is zoned for commercial use, also with a plot ratio of 4.2 under the Master Plan. The building has a remaining leasehold of 93 years and a total floor area of 7,279 square feet. The guide price for this property translates to $3,105 psf. Currently fully leased to a bridal shop on the ground floor and offices on the upper levels, this building offers a stable source of rental income for potential buyers.
According to Clemence Lee, Executive Director of Capital Markets at CBRE Singapore, both properties have attractive remaining land tenures compared to other 99-year leasehold properties in the CBD area. This makes them suitable for owner-occupiers looking for a premium asset with naming rights for their operations. As the properties fall under the hotel and commercial categories, foreigners and companies are eligible to purchase both assets without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
The two properties are located in Clarke Quay, a popular riverfront lifestyle enclave with a bustling nightlife scene. It is also home to various renowned restaurants, bars, boutique hotels and fitness studios. In addition, both properties are conveniently situated near Clarke Quay MRT station on the North-East Line. The nearby CQ@Clarke Quay is undergoing a $62 million asset enhancement initiative, while the upcoming completion of two large-scale integrated developments – Canninghill Piers and Union Square – is expected to further enhance the vibrancy of the area. Lee believes that both properties have the potential for future rental growth and capital appreciation in the medium to long term.
The sale of both properties will be conducted via an expression of interest exercise, with a closing date of March 26. Interested parties can check out the latest listings for commercial real estate properties and consult with CBRE for more information on the price trends, past sales transactions, and rental rates in the commercial and industrial sectors.