CBRE has been exclusively chosen to market the sale of two prime properties in Hongkong Street. The first is a 27-room hotel, Hotel Clover, at a guide price of $27 million. The second is a commercial building located at 36 Hongkong Street, which has a guide price of $22.6 million.
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Situated on a 1,701 sq ft plot, the six-storey boutique hotel is zoned for hotel use with a plot ratio of 4.2 under the latest Master Plan. With a remaining land tenure of around 89 years, the 99-year leasehold site has a total floor area of 7,142 sq ft. The pricing translates to $3,780 psf based on the floor area.
On the other hand, the five-storey commercial building at 36 Hongkong Street sits on a 1,733 sq ft plot that is zoned for commercial use with a plot ratio of 4.2 under the Master Plan. The 99-year leasehold site has a remaining land tenure of 93 years. The building, with a total floor area of 7,279 sq ft, has a guide price that translates to $3,105 psf. The commercial building is fully leased to a bridal shop on the ground floor and offices on the upper floors.
According to Clemence Lee, Executive Director of Capital Markets at CBRE Singapore, both properties boast more attractive remaining land tenures compared to the majority of 99-year leasehold properties in the CBD area that are currently on sale. This makes them ideal for owner-occupiers looking for a flagship asset at a reasonable price with naming rights for their exclusive operations.
As these properties are classified as a hotel and commercial building, both foreigners and companies are eligible to purchase them without incurring Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD).
Located in Clarke Quay, a well-established riverfront lifestyle precinct, both properties are surrounded by highly-acclaimed dining establishments, boutique hotels, bars, and fitness studios. They are also conveniently located near the Clarke Quay MRT Station on the North-East Line.
Upcoming developments also add to the allure of these properties, with the nearby CQ@Clarke Quay undergoing a $62 million asset enhancement initiative and the completion of two large-scale integrated developments, Canninghill Piers and Union Square, in the near future. With all these developments, Lee believes that there is excellent potential for future rental growth and capital appreciation in the medium to long term.
Both properties will be sold through an expression of interest exercise, which will close on March 26. Don’t miss this opportunity to own a prime piece of real estate in the vibrant and bustling Clarke Quay area.