Spanish tycoon buys shophouse for $22.1m

In expanding his portfolio of Singapore conservation shophouses, Spanish magnate Ricardo Portabella Peralta is paying a huge premium for a three-storey conservation shophouse at 29 Stanley Street within the CBD, reported the Business Times.

An entity connected to Peralta is acquiring the property for $22.1 million, or $3,400 psf based on its gross floor area (GFA) of around 6,500 sq ft.

The price reflects a premium of about 36 percent from the $16.2 million transacted price paid by the seller for the shophouse in H2 2018, who is an experienced property investor with interests in the food & beverage business and fresh produce trade.

Situated near Telok Ayer MRT station, the property is nestled on a site with 71 years left on its 99-year lease. Its ground floor is occupied by sushi and cocktail bar Chi Kinjo, while its upper floors are approved for office use.

The property represents the latest acquisition of Peralta on Stanley Street, where he owns, among others, the nearby unit at No 30, which he acquired in 2016.

Other locations where entities connected to him own shophouses include Amoy Street, Telok Ayer Street, Pagoda Street, Boon Tat Street, Craig Road and Ann Siang Road.

Market watchers believe things are looking bright for the shophouse market as the cooling measures rolled-out by the government last July helped divert investment interest to commercial properties. Conservation shophouses, particularly those in the CBD and Chinatown, stand out due to their scarcity.

Unlike residential properties, it is easier to secure financing for shophouses and they also offer relatively higher yields.

Shophouses on sites zoned for commercial use have proven to be attractive to foreigners as they can freely acquire them.

Source: 12 March 2019, CommercialGuru