Special Feature

Sultan Plaza offers rare commercial investment opportunity for sale via Expression of Interest at $39 mil

September 16, 2024 5:00 PM SGT

The asset comes with a public entertainment license, which is a rare feature in commercial buildings (Photo: Chai Chin Yun)

Commercial strata retail space at Sultan Plaza on 100 Jalan Sultan off Beach Road has been launched for sale via Expression of Interest with a guide price of $39 million. At a strata area of 30,946 sq ft, this translates into $1,260 psf on total strata area. The net leasable area is close to 17,000 sq ft, excluding the void space of around 14,000 sq ft.

The 99-year leasehold asset comprises 211 commercial units and 33 offices, totalling 244 strata lots across nine storeys. As its lease started in May 1978, the property has a balance lease term of about 53 years.

The development is fully zoned for commercial use and features large single-floor plates with public entertainment license, which is a rare feature in commercial buildings. This presents unique opportunities for investors as big established tenants can easily take up the large units for their businesses on a single floor, without having to take up units on separate storeys. The unit also has direct access to the carpark, which ramps up to Level 6, providing a VIP experience for tenants and visitors.

Investors can expect high rental yields and strong rental demand for the development. Based on rental data in the last 12 months, commercial units at the property have a rental yield of 9%, which is significantly higher than that of nearby commercial properties, such as City Gate (3.5%) on Beach Road and the adjacent Textile Centre (5.6%) on Jalan Sultan.

The Sultan Plaza commercial space will be sold with tenancy, offering investors immediate monthly rental returns. The current anchor tenant, Grand Dynasty KTV, is a veteran with over 20 years history in the entertainment and nightlife business, has signed a lease with an option to extend. Chai Chin Yun, vice-president of homegrown real estate agency Master Real Estate, says that the tenant is likely to extend.

“The tenant has made significant investments of over $6 million in renovations and takeover fees, which have enhanced the value of the property significantly. Furthermore, it is rare to find large-sized public entertainment units in commercial buildings. This might be the only one of this size in today’s market currently available,” Chai notes. He adds that the Sultan Plaza building is ideal for investors looking for immediate rental income and those already investing in the entertainment industry.

The current anchor tenant, Grand Dynasty KTV, has signed a lease with an option to extend, and has invested over $3 million in renovations (Photo: Chai Chin Yun)

Other businesses at Sultan Plaza support the entertainment business, such as 24/7 eateries and beauty and wellness businesses. Jalan Sultan is flanked by Beach Road and North Bridge Road, both of which have a diverse range of F&B, entertainment and lifestyle retail options that add vibrancy to the surrounding area. The Kampong Glam Conservation Area right across the street is an iconic tourist attraction, further promoting higher foot traffic in the area.

Residential developments nearby also contribute to the area’s high footfall, such as the residential component of City Gate, the 360-unit Concourse Skyline on Beach Road, and the 197-unit Southbank condo on North Bridge Road.

Sultan Plaza is well connected to the rest of Singapore. A bus stop just outside the building offers bus services to the north, such as Sembawang and Woodlands, and to Shenton Way in the Downtown Core area. The nearest MRT station, Nicoll Highway on the Circle Line, is just a short walk away.

Chai observes that the building has future en bloc potential. He points to the neighbouring City Gate mixed-use development, an en bloc redevelopment of the former commercial building KeyPoint. Alternatively, he says that there were plans for Sultan Plaza—which tried for en bloc previously—to be redeveloped into a mixed-use development, subject to authorities’ approval.

Chai highlights that the same property owner is also looking to sell his over 3,000 sq ft Bukit Timah Plaza F&B approved shop, which has en bloc potential and rental yield of more than 4%. For investors, this is a rare opportunity to concurrently negotiate to own the two units at a bundle deal.

For more information,

Contact CHAI CHIN YUN | 96303137

VICE PRESIDENT (R044875G)

MASTER REAL ESTATE PTE. LTD.

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