>

Seven commercial units at Thomson Plaza for sale at $28 mil

/ EdgeProp Singapore |

March 9, 2023 9:20 AM SGT

Thomson Plaza (Picture: Samuel Isaac Chua/The Edge Singapore)

SINGAPORE (EDGEPROP) - Seven commercial units at Thomson Plaza, a shopping mall along Upper Thomson Road, are up for sale. The seven contiguous units are held under one single strata lot and will be sold collectively. According to Micah Lim, senior associate director at JKL Consultants who is marketing the units, the portfolio has a starting price of $28 million.

The units, located on level two at the front podium of Thomson Plaza, have a total floor area measuring 5,102 sq ft and are approved for permanent F&B usage. They are currently leased out, with tenants including Pizza Hut, KFC and a dental clinic. “Pizza Hut and KFC have been tenants at the units for about 18 years,” Lim says. The units are being sold with the existing tenancies.

KFC at Thomson Plaza - EDGEPROP SINGAPORE

The KFC at Thomson Plaza (Picture: JKL Consultants)

Lim highlights that together, the units have a large, single-level, regular floor plan which offers flexibility for different F&B possibilities such as a buffet restaurant, food court, or for fast food outlets, subject to approval by the Thomson Plaza Management Corporation Strata Title (MCST) and relevant authorities. “The new owner may also consider applying to strata subdivide the units to maximise yields,” he continues.

Thomson Plaza is part of a wider strata mixed-use development. Built in 1979, it comprises the the mall as well as Marigold Mews, a townhouse development along Marigold Drive. The entire site is zoned for commercial use under the URA Master Plan 2019. (Find Singapore commercial properties with our commercial directory)

Thomson Plaza has 180 shops and a total gross floor area of 467,298 sq ft. It is directly linked to the Upper Thomson MRT Station on the Thomson-East Coast line.

resale transactions - EDGEPROP SINGAPORE

Recent resale transactions of strata retail units at Thomson Plaza (Source: EdgeProp Research tool)

Mercatus Co-operative, a unit of NTUC Enterprise Co-operative, acquired strata ownership of 110,000 sq ft of retail space in Thomson Plaza in 2016, representing about 50% of the net lettable area within the mall. The space, located on levels one and three, is known as Swing By @ Thomson Plaza.

On Dec 28, 2022, Mercatus announced it had entered a sale and purchase agreement with various subsidiaries of Hong Kong-listed Link REIT to divest its entire interest in Swing By @ Thomson Plaza. The deal is expected to be completed on March 31.

Read also: Mercatus divests two retail assets in Singapore for $2.16 billion to Link REIT

Lim sees the change in ownership as a plus, anticipating that the REIT – which is the largest in Asia – will be able to draw more shoppers through its management of the space. “With Link REIT now on board as a majority owner, the potential for redevelopment or en bloc may likely materialise and accelerate,” he adds. (See potential condos with en bloc calculator)

The completion of the Johor Bahru-Singapore Rapid Transit System (RTS) Link, targeted for 2026, will also be a boost for Thomson Plaza. The Upper Thomson MRT Station is seven stops away from the Woodlands North MRT Station, which will be connected to the Woodlands North RTS Link station.