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Balestier Point freehold commercial units portfolio for sale at $68m

by • February 7, 2020 • Commercial Property LoanComments (0)444

Balestier Point freehold commercial units portfolio with a total strata area of approximately 19,787 sq ft up for sale

Balestier Point freehold commercial units portfolio

Image: Savills Singapore

Savills Singapore, announced on Feb 5 that it is pleased to offer for sale via Expression of Interest (EOI), a portfolio of freehold commercial units at Balestier Point (“the Property”) – an 18-storey with basement mixed-use development located within the matured Balestier precinct, an estate rich in heritage value and undergoing rejuvenation to become an exciting area for business, leisure and entertainment.

The opportunity consists of a total of 11 commercial units, with sizes ranging from 269 sq ft to 5,609 sq ft, making up a total strata area of approximately 19,787 sq ft. The Balestier Point freehold commercial units portfolio comprises a total of 31.72 per cent of share value within Balestier Point. Through this portfolio, the prospective purchaser will command significant stake in the MCST.

The units are located on both the ground floor and second storey of the development, and enjoy excellent shop frontage and high visibility, particularly for units located on the ground floor with main road frontage. Selected units will come with restaurant approvals.

Ms Yap Hui Yee, Director, Investment Sales & Capital Markets at Savills Singapore, commenting on the Balestier Point freehold commercial units portfolio for sale said: “This is a rare opportunity for both investors and end-users to own freehold commercial units that are located within the established residential enclave of Balestier, which is surrounded by predominantly private housing units and home to a number of famous local eateries, as well as quaint restaurants, hidden cafés and bars.”

The Balestier Point freehold commercial units portfolio will appeal to investors looking to purchase units with immediate and stable rental income, as well as owner-occupiers seeking space for their own use.

Subject to approval from relevant authorities, potential alternative uses – including cafés, educational, showroom, retail, fitness center, healthcare, medical, home & living and lifestyle business – can be explored for the Balestier Point freehold commercial units portfolio. In the longer term, the prospective purchaser can expect to enjoy capital upside from the strata market rebound or collective sale potential of Balestier Point.

The development is nestled within the established Balestier precinct and is within proximity to Novena, one of Singapore’s biggest healthcare and medical hubs. The area will continue to benefit from the transformation of the developments in the vicinity, such as Zhongshan Mall and the upcoming refurbished Shaw Theatres Balestier, and the expanded Tan Tock Seng Integrated Care Hub.

In addition, the Balestier Point freehold commercial units portfolio is well served by major roads such as Pan Island Expressway (PIE) and Central Expressway (CTE), providing excellent connectivity to the rest of the island. The Central Business District at Raffles Place and Marina Bay is a short 10 minutes’ drive away.

“Buyers have the option to purchase units on an individual basis, or all 11 commercial units collectively. The indicative guide price is $68 million for the entire portfolio, or $1.22 million for the smallest unit, which will appeal greatly to a wide pool of buyers who have been on the lookout for prime shops to purchase. There will be no Additional Buyers’ Stamp Duty or Sellers’ Stamp Duty, so both foreigners and companies are eligible to purchase the property,” added Ms Yap.

The Expression of Interest (EOI) for the Balestier Point freehold commercial units portfolio will close on Tuesday, 17th March 2020, at 3pm.

Mr Paul Ho, the chief mortgage consultant at iCompareLoan said: “Properties such as the Balestier Point freehold commercial units portfolio may be bought under personal name, but total debt servicing Total Debt Servicing Ratio (TDSR) will apply on the individual’s income on such purchases. To buy a commercial or industrial property under company name, total debt servicing ratio TDSR also applies on the individual director’s income if the company is an investment holding company or an operating company that is loss-making or does not have sufficient cash flow to servicing the repayment.”

He added: “To buy a commercial or industrial property under company name where the company is well established with an existing operating business with strong financials, TDSR may be waived on the individual. However director is usually required to become personal guarantors of the loan the company undertakes. Hence this may affect the director’s other purchases, such as for buying a residential property, due to the loading from the TDSR for guaranteeing a loan.

Some banks even advertise 100 to 120% loan. This is due to a combination of working capital as well as commercial/industrial property loan, but this only applies to company with strong cash flow position. Commercial property is different from residential property and the considerations are more complex and varied though the payoff may be worthwhile for investors.”

When Balestier Point first opened, residents and passers-by alike noted the unusual modular design o the $35 million multi-purpose complex, which housed 62 retail units on the first two floors, car parks on the third and fourth levels and 13 floors of residential apartments with two or three bedrooms.

To ensure that residents had ample privacy, the architects raised, RDC Architects, raised homes above the commercial levels and provided each apartment with its own private terrace and garden in the air. The traditional five-foot way at Balestier Point was reinterpreted as framed hollow cubes on the ground level through which pedestrians can walk. Balestier Point received an Honourable Mention Award from the Singapore Institute of Architects in 1987. The building sits on the site of the former Ruby Theatre, which opened from 1958 until the early 1980s.

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