SINGAPORE (EDGEPROP) - A pair of freehold shophouses at 425 and 427 East Coast Road have been put on the market for $7.8 million. According to CBRE, the agency marketing the sale of the properties, both shophouses are to be sold collectively by expression of interest (EOI).

The two-storey shophouses sit on a 2,380 sq ft plot along East Coast Road and they enjoy a prominent 10-meter street frontage. The properties also have a total existing built-up area of about 3,960 sq ft.

The properties are within the Joo Chiat Secondary Settlement Conservation Area and are zoned “Residential with Commercial at 1st storey” with a gross plot ratio of 3.0 under the 2019 Master Plan.

“The ground floor of 425 East Coast Road is currently approved for F&B use. With URA being more stringent in granting F&B approval, shophouses that have already obtained F&B approvals are deemed to be extremely valuable and attractive,” says Clemence Lee, senior director of capital markets, Singapore, at CBRE.

According to CBRE, the properties can be redeveloped into a mixed-use development with a maximum allowable gross floor area (GFA) of about 7,140 sq ft, and a building height of up to five storeys, subject to approval.

The indicative asking price works out to about $1,092 psf on the maximum allowable GFA. Meanwhile the development charge payable to maximise the plot ratio is estimated to cost $3 million, subject to confirmation of the development baseline.

Lee expects “keen interest” from end-users such as F&B operators, as well as developers who may want to capitalise on the redevelopment opportunity. It may also appeal to private investors and family offices as a wealth preservation asset, he says.

Other alternative uses include co-working, medical or healthcare, F&B and lifestyle retailers, or hostel operators, subject to approval.

The EOI closes on March 31.

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