No buyers for second attempt to sell en bloc; shops on fifth floor up for sale for $22 million
Eleven shops in Sim Lim Square have gone on the market after the tech mall’s second bid to sell en bloc failed to attract buyers.
The collective sale tender closed on Dec 30 with no formal bids, much like the mall’s first attempt in July last year.
Some shop owners decided they had waited long enough and took matters into their own hands, with 11 shops now up for sale via expressions of interest for a combined $22 million.
The shops, which can be bought collectively or as individual units, face the central podium on the fifth floor.
The last three transactions for such units achieved prices of around $5,000 per sq ft, said sole marketing agent Knight Frank Singapore.
Since this is a commercial property, the sale is open to both Singaporeans and foreigners, with no additional buyer’s stamp duty and seller’s stamp duty imposed on the purchase.
The sale exercise closes at 3pm on Feb 1.
Owners at the strata-titled mall had been optimistic that their second attempt to sell en bloc would get results. They kept the reserve price unchanged at around $1.25 billion but with the added sweetener of a further 27 per cent of built-up space plus the possibility of lower development charges.
Mr Francis Tan of consultancy SLP Scotia, the mall’s marketing agent, said they felt they had to make a second attempt – “one final push before expiry of the collective sale agreement in March 2020”.
Sim Lim Square was built in 1985 and sits on a 99-year leasehold site of 78,152 sq ft. The 492 commercial units are spread out over six storeys and two basement levels.
The plot, which is beside Rochor MRT station, is fully zoned for commercial use, so there was no mandatory requirement to top up the lease, which has 63 years left.
While the collective sale fever has been doused for residential properties, interest for commercial blocks has not entirely faded.
The tender submission date for the $780 million collective sale of The Arcade in Raffles Place has been extended from yesterday to March 5 after developers said they needed more time to assess the site.
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