Sultan Plaza Offers Rare Commercial Investment Opportunity Sale Expression Interest 39 Mil

Sultan Plaza, a commercial strata retail space located at 100 Jalan Sultan off Beach Road, has recently been put up for sale through Expression of Interest with a guide price of $39 million. This translates to $1,260 per square foot for a total strata area of 30,946 square feet. With a net leasable area of around 17,000 square feet, excluding the void space of 14,000 square feet, the 99-year leasehold asset comprises 211 commercial units and 33 offices, making a total of 244 strata lots spread across nine storeys. The property, which started its lease in May 1978, has a remaining lease term of approximately 46 years.

The development is exclusively zoned for commercial use and boasts of large single-floor plates with a rare public entertainment license, setting it apart from other commercial buildings. This uniqueness presents investors with a valuable opportunity as established tenants can easily lease the large units on a single floor for their businesses, without having to occupy separate units on different levels. Additionally, the unit has direct access to the carpark, which is accessible via Level 6, providing a VIP experience for tenants and visitors.

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

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

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Mr. Chai states that the tenant has invested approximately $6 million in renovations and takeover fees, significantly enhancing the value of the property. In addition, it is rare to find large-sized public entertainment units in commercial buildings, making this property one of a kind in today’s market. He also adds that the Sultan Plaza building is ideal for investors looking for immediate rental income and those already investing in the entertainment industry.

Other businesses at Sultan Plaza support the entertainment business, such as 24/7 eateries and beauty and wellness businesses. The location at Jalan Sultan, surrounded by Beach Road and North Bridge Road, offers a diverse range of F&B, entertainment, and lifestyle retail options, adding vibrancy to the surrounding area. The Kampong Glam Conservation Area, just across the street, is an iconic tourist attraction that further promotes high foot traffic in the area.

The high foot traffic is also attributed to the residential developments nearby, 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 has excellent connectivity to the rest of Singapore. A bus stop located outside the building offers bus services to the north, including 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.

Mr. Chai points out that the building has potential for future en bloc. He cites the neighboring City Gate mixed-use development, a successful en bloc redevelopment of the former commercial building, KeyPoint. Alternatively, he mentions the previous plans for Sultan Plaza, which attempted to undergo en bloc and be redeveloped into a mixed-use development, subject to authorities’ approval.

Furthermore, Mr. Chai highlights that the same property owner is also looking to sell his over 3,000 square feet Bukit Timah Plaza F&B approved shop, which has en bloc potential and a rental yield of more than 4%. This presents investors with a rare opportunity to negotiate concurrently and acquire both units at a bundle deal.

For more information, please contact:

CHAI CHIN YUN | 96303137

VICE PRESIDENT (R044875G)

MASTER REAL ESTATE PTE. LTD.