7 Sim Lim Square units for nightlife venue use go on sale for $17m

SINGAPORE – Seven retail units at electronics and IT mall Sim Lim Square have been put up for sale via private treaty with a guide price of $17 million, marketing agent Huttons Asia said on Monday.

The portfolio has an estimated strata floor area of 5,156 sq ft. All the units come with Class 1 entertainment licences, which allow operating hours of up to 3am. They also have a balance master tenancy of more than five years in place and an estimated rental yield of about 4 per cent.

The properties are zoned for commercial use under the Urban Redevelopment Authority’s Master Plan. There is no seller’s stamp duty or additional buyer’s stamp duty and foreigners are eligible to purchase the units. Potential buyers are able to acquire the entire portfolio or individual units, Huttons Asia noted.

The six-storey Sim Lim Square, which has 492 units, was completed in 1987. It is near Rochor, Jalan Besar, Little India and Bugis MRT stations. It is also accessible via Rochor Road, Victoria Street, the Central Expressway and the East Coast Parkway.

Huttons Asia head of sales and auction James Wong said the loss of lettable area approved for nightlife entertainment purposes due to recent collective sales and the non-renewal of nightlife entertainment licences at Orchard Towers could drive strong demand in the next few years for retail units that come with the necessary infrastructure and approvals.

The Business Times reported in May that Golden Mile Complex was sold en bloc for $700 million to a consortium comprising Far East Organization, Perennial Holdings and Sino Land.

Collective sale die-hard Peace Centre, together with Peace Mansion, was also sold to Chip Eng Seng, a SingHaiyi joint venture and Ultra Infinity for $650 million in December 2021.

In 2019, Sim Lim Square’s owners attempted a collective sale with a reserve price of $1.25 billion, dangling an additional 27 per cent of built-up space plus the possibility of lower development charges. THE BUSINESS TIMES