A prime opportunity has emerged for investors looking to acquire a pair of adjoining strata retail units at Peninsula Plaza. Situated on the ground floor with a highly visible frontage along North Bridge Road, these 999-year leasehold units have a combined strata area of 1,119 sq ft. The asking price of $10.9 million translates to $9,741 psf based on the strata area.
Currently tenanted until 2026, the properties offer a 3% gross rental yield at the guide price of $10.9 million. According to Nick Chan, associate director of investment sales & capital markets at Savills Singapore, the two units are the most desirable within the development due to their excellent street frontage and consistent foot traffic.
Securing financing for a condo is a crucial element of the investment process. In Singapore, there are various mortgage choices available, but it is essential to be familiar with the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan an individual can obtain, based on their income and current debt obligations. It is crucial for investors to understand the TDSR and seek guidance from financial experts or mortgage brokers to make well-informed decisions about their financing options. This will prevent them from becoming over-leveraged and facing financial difficulties in the future.
Built in 1980, Peninsula Plaza is a 30-storey mixed-use commercial building with a six-storey retail podium and a 24-storey office tower. It holds a 999-year lease and boasts prominent frontages along North Bridge Road, Coleman Street, and Coleman Lane. The strata subdivision of commercial properties in the CBD and Orchard corridors has been restricted since March 2022, making strata-titled units with 999-year and freehold tenure highly sought-after.
The last transaction of a ground-floor retail unit at Peninsula Plaza was in August 2022, when a 452 sq ft unit sold for $4.08 million ($9,025 psf) based on a lodged caveat. Given the prime location and potential for rental yield, this pair of strata retail units is a rare investment opportunity that should not be missed.