Two Retail Units Sim Lim Square Sale 338 Mil
Retail units at Sim Lim Square for sale at $11.4 mil
ERA will be featuring a pair of retail units located on the third floor of Sim Lim Square in their upcoming auction on Feb 27. The total guide price for the two units is $3.38 million.
The larger unit, which measures 958 sq ft, has a guide price of $2.08 million ($2,171 psf). Meanwhile, the smaller unit, with a size of 570 sq ft, has a guide price of $1.28 million ($2,246 psf).
This will be the first time both units are being featured on ERA’s auction listings, as they are currently under the ownership of a single owner. Interested buyers have the option to purchase both units together or individually.
According to Alison Lee, ERA’s assistant vice president of auction and sales, the units are priced competitively to entice a quick sale. She adds, “They are priced slightly below the market average to incentivise a speedy sale.”
Based on data from EdgeProp Singapore’s analytical tools, the average transacted price for retail units at Sim Lim Square in the last 12 months is $2,997 psf. The latest transaction at the development was for a ground floor shop of 592 sq ft, which sold for $1.92 million ($3,241 psf) in December 2020.
Sim Lim Square has established itself as a technology hub, well-known for its range of electronics, gadgets, and computer parts (Photo: ERA)
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Lee also highlights that Sim Lim Square has a strong reputation as a technology hub, known for its concentration of electronics, gadgets, and computer parts retailers. The development also houses a diverse mix of other businesses, including eateries and traditional Chinese medicine stores.
Both units currently on sale are tenanted and generating a monthly rental income of around $4.50 psf. Rental data from EdgeProp Singapore, based on a rolling 12-month average, shows that retail units at Sim Lim Square have an average rental yield ranging from $4.20 to $7.30 psf per month.
The owners of Sim Lim Square attempted a collective sale in April 2019, with a reserve price of $1.25 billion. The tender was relaunched in December 2019 at the same price but did not find a buyer.
Plans for a second attempt led by a collective sales committee formed in 2020 did not pan out. However, Lee reveals that a new committee is in the works to explore the possibility of another collective sale attempt in the near future.
Completed in 1987, Sim Lim Square is a strata-titled commercial development located on Rochor Canal Road in District 7. It sits on a 78,152 sq ft site with a 99-year lease from 1983. The complex comprises 492 retail and office units spread across six floors and two basement levels. It is within walking distance to Rochor and Jalan Besar MRT stations on the Downtown Line, with Bugis MRT interchange connecting to the East-West and Downtown Lines.
