SINGAPORE (EDGEPROP) - Civil engineering and building contractor firm Shincon Industrial has sold a row of three freehold shophouses along Geylang Road in a private treaty sale for $18.68 million ($4,326 psf), announced Cushman and Wakefield, who brokered the deal. The shophouses are located on 223, 225 and 227 Geylang Road within the Geylang Conservation Area.

Based on caveats, Shincon Industrial acquired the properties for $10.28 million ($2,380 psf) in 2020, and the recent divestment of the assets has turned in a profit of $8.4 million for the company. The three shophouses have a combined site area of approximately 4,319 sq ft with a current gross floor area (GFA) of approximately 6,756 sq ft.

The sale comes with an in-principle written permission by URA to allow for a five-storey extension with a roof terrace, with the potential to increase future gross floor area by about 80%, based on the Master Plan 2019.

Read also: More foreign private wealth diverted to commercial shophouses as cooling measures bite

The transaction bolsters investor’s confidence in the shophouse market, where buyers see extrinsic and intrinsic value within this vernacular asset class, notes Shaun Poh, executive director of capital markets at Cushman and Wakefield. He adds: “We believe demand from both local and foreign buyers will continue to be strong as shophouses located in unique heritage and strategic location make a compelling addition to investor’s investment portfolio for the long term.”