The food court and retail store enjoys good foot traffic and is frequently at maximum capacity during the weekday lunch rush. (Picture: Albert Chua / EdgeProp Singapore)
A first-floor food court and an adjacent retail unit in People’s Park Centre are up for sale at $27 million. Together, the properties span about 5,705 sq ft across nine strata-titled units, reflecting a price of $4,733 psf. Tommy Ng, senior district director at PropNex, is the exclusive marketing agent for these units.
Food City operates the food court, which has 11 fully leased stalls and a seating capacity of 256. The interiors were recently renovated, and the mechanical and electrical systems were overhauled. The adjacent retail unit is tenanted to the lifestyle retail store Japan Home.
The adjacent retail unit is currently tenanted to the lifestyle retail store Japan Home. (Picture: Albert Chua / EdgeProp Singapore)
The units have a prominent frontage at the atrium, directly opposite the complex's main entrance. Additionally, the food court, being the only one on the first floor, offers the most accessible and affordable dining option.
Built in 1970, People’s Park Centre is a mixed-use development with 324 shops, 256 offices, 120 apartments and a car park housed in a 13-storey and 30-storey block. The development sits on a 95,467 sq ft site with a gross floor area of about 821,017 sq ft. It has a 99-year lease from 1970.
The shopping mall has a healthy tenant mix, including services such as beauty, nail and hair salons, retailers, F&B outlets, fashion retailers and mobile device stores.
Built in 1970, People’s Park Centre is a mixed-use development with 324 shops, 256 offices, 120 apartments and a car park. (Photo: Albert Chua / EdgeProp Singapore)
“The food court is frequently at maximum capacity during the weekday lunch rush as it is one of the more affordable dining options in the area,” says Ng.
The units were listed for $33 million last year. They attracted several interested buyers, but the owners opted to hold onto the units in favour of a high rental yield.
However, the owners decided to put the food court and shop for sale again at $27 million. “It is a great investment opportunity for discerning investors,” says Ng. “The chance to once again snatch up the profitable assets."
He adds that the units generate a combined rental income of approximately $80,000. A price tag of $27 million results in a gross rental yield of about 3%. Unit rents have grown by 3% to 8% per annum over the last five years.
Ng adds that a windfall from a future collective sale is also possible. Recently, at least 80% of the strata-title owners at People’s Park Centre have agreed to a new collective sales attempt. A valuation report conducted last year showed that the units for sale were valued at $42.5 million.
People’s Park Centre attempted a collective sale in 2022 for $1.8 billion. It is understood that the food court and retail unit must be sold together, allowing future owners to repurpose the space if they wish.
For instance, the retail unit can be amalgamated with the food court. Alternatively, the food court can be subdivided into eight strata units to be leased to different tenants.
Located at 101 Upper Cross Street in Prime District 1, People’s Park Centre is conveniently next to the Chinatown MRT Station on the North-East and Downtown Lines and a short drive from the CBD.
For more information,
Contact TOMMY NG | 98712758
ASSOCIATE SENIOR DISTRICT DIRECTOR (R031914J)
PROPNEX REALTY PTE. LTD.