JLL, the exclusive marketing agent for the prime ground floor F&B unit in Bukit Timah Plaza, is inviting offers through an Expression of Interest exercise for the purchase of the property. The Food and Beverage (F&B) unit with prominent frontage, located on the ground floor in Bukit Timah Plaza is a mixed-use development comprising of a four-storey retail podium and a 269-unit residential block.
Situated on the ground floor, the 4,930 square feet prime ground floor F&B unit is highly prominent and enjoys high footfall, being strategically located opposite the mall’s escalators and within close proximity to major tenants such as Popular bookstore, NTUC Finest supermarket and DBS Treasures.
Image credit: JLL
The prime ground floor F&B unit is currently tenanted to a commercial school with an ancillary café. The unit will appeal to investors looking to purchase a unit with immediate and stable rental as well as owner occupiers looking to purchase the unit for own use. Subject to approval from relevant authorities, potential alternative uses includes retail, education, medical, banking hall and entertainment amongst others.
Prominently located at the intersection of Clementi Road and Upper Bukit Timah Road, Bukit Timah Plaza commands excellent visibility and is conveniently accessible from Beauty World MRT Station which is situated a mere 300-metre away. It is also well-connected to other parts of Singapore via major arterial roads Clementi Road, Bukit Timah Road and the Pan Island Expressway (PIE).
The development is nestled in the mature and affluent Bukit Timah estate where there is a dense concentration of private housing. The family-centric mall caters to the nearby residential catchment area and is home to family-oriented shops, enrichment centres, banking halls and other necessities. Due to the limited amount of lifestyle offerings and amenities in the vicinity, the development attracts a steady flow of patronage from the neighboring area.
Mr Clemence Lee, Associate Director, JLL says: “This is a rare opportunity for both investors and owner-occupiers to own a ground floor F&B unit within a high-traffic shopping mall located in the mature and affluent Bukit Timah estate. Units on the ground floor in the mall are usually tightly-held and seldom made available for sale due to them enjoying high visibility and human traffic. This scarcity is evident from the limited number of transactions within the development over the past two years – only two units on the ground floor were transacted at $2,614 psf and $2,986 psf respectively.”
The indicative guide price for the prime ground floor F&B unit is in the region of $13 million, which reflects around $2,600 per square feet on the existing strata area.
As this is a commercial property, foreigners are eligible to purchase the property and there are no Additional Buyer’s Stamp Duty (ABSD) or Seller’s Stamp Duty (SSD) imposed on the purchase of the property. The Expression of Interest for the prime ground floor F&B unit exercise closes on Wednesday, 28 November 2018, at 3 pm.
An earlier report by JLL said that the biggest gainers following the new property cooling measures will likely be owners of strata-offices and shophouses approved for commercial use. The real estate service company said: “The government’s swift response to curb home price growth has tampered the prospects of residential properties as attractive investments. Investors looking for alternatives to park their money could divert their attention to the strata office and shophouse markets as they are not subjected to this round of purchase or sales restrictions/encumbrances.”
Paul Ho, the chief mortgage consultant at iCompareLoan said: “Properties such as the 999-year commercial shophouse 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.”
How to Secure a Commercial Loan Quickly
Are planning to purchase a similar prime ground floor F&B unit but unsure of funding? Don’t worry because iCompareLoan mortgage brokers can set you up on a path that can get you a commercial loan in a quick and seamless manner.
Alternatively you can read more about the Best Commercial Loans in Singapore before deciding. Our brokers have close links with the best lenders in the industry and can help you compare Singapore commercial loans and settle for a package that best suits your commercial purchase needs.
Whether you are looking for a new commercial loan or refinance, our brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the loan. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them.
To speak to our distinguished Panel of Property agents.
For refinancing advice on your properties.
The post Prime ground floor F&B unit in Bukit Timah Plaza up for sale at $13 million appeared first on iCompareLoan Resources.