FOR SALE BY EXPRESSION OF INTEREST: 41 HONGKONG STREET – 6-STOREY CONSERVATION SHOPHOUSE WITH HOTEL AND RESTAURANT APPROVED USE

SINGAPORE, Sept. 19, 2023 /PRNewswire/ — Brilliance Capital is pleased to launch the Expression of Interest for an exceptional 6-storey conservation commercial shophouse with hotel approved use, located at 41 Hongkong Street. Currently operating as a well-received 30-key sophisticated boutique hotel just opposite of the popular mall, Clarke Quay Central, this historic conservation shophouse presents a choice investment opportunity for the forward-thinking investor in one of Singapore’s most vibrant tourism hubs right in the heart of the city.

Strategically located at Hongkong Street, the boutique hotel is mere steps away from the bustling Clarke Quay wining and dining scene, as well as numerous tourist hotspots, financial and commercial hubs such as Boat Quay, Chinatown, Raffles Place and Marina Bay. With a lively F&B establishment on its ground floor, the property offers a turnkey solution that would easily attract potential tenants as well as a seamless setup that expedites the leasing process for the future landlord, opening doors to enticing growth opportunities. Having obtained TOP in October 2019 after completion of a major Additions and Alterations, the property also comes with a tenure of 99 years with effect from 18 December 2018. It is located within the Upper Circular Conservation Area under Secondary Settlements Conservation on a land area of approximately 2,072 sq ft zoned “Commercial”, with a plot ratio of 4.2 under the Master Plan 2019 and has an estimated total build-up area of 8,872 sq ft.  

The property currently houses Hotel NuVe Elements, a reputable tenant that contributes to a consistent rental income, bolstering the investment’s security. Its ground floor is currently leased and serves as a popular Japanese restaurant, the second to the sixth floors house 30 contemporary guest rooms, and above the top floor sits a rooftop terrace with jacuzzi facilities. All rooms come with windows which provide natural light into the spaces.

In the post-Covid era, Singapore has cemented its reputation as a top snazzy and safe tourist destination in Southeast Asia, and with ‘revenge tourism’ on the rise, the property is well-poised to leverage the resurgence of Singapore’s tourism sector. The robust growth in visitor arrivals in the past 2 years, coupled with the local hotel market’s resilience and adaptability, underscores its promising investment potential. 

Furthermore, this conservation commercial shophouse is strategically positioned within the pulse of the Upper Circular Road Conservation Area, a highly sought-after downtown location known for its historical significance and thriving cultural scene. The area is renowned for its diverse culinary offerings, bespoke cafes, retail, offices, hotels, art galleries, and proximity to prominent landmarks such as the Singapore River, Marina Bay Sands, Gardens by the Bay, the Merlion, National Gallery and Chinatown. In addition, the locale is conveniently served by Clarke Quay MRT station just a 2-minute walk away and is also within easy access to other modes of public transport and the Central Expressway.

Ms Sammi Lim, Founder and Executive Director, Brilliance Capital Pte Ltd, said: “Given its prime city location and relatively fresh 99-year tenure, 41 Hongkong Street represents an excellent opportunity to acquire a prestigious shophouse in one of Singapore’s most desirable locales, with strong potential for both capital and rental appreciation. The hotel market has seen constrained new supply, so this rare asset with approved hotel use represents an extraordinary chance for investors and discerning buyers to acquire a significant and iconic historic conservation shophouse with a steady income stream in Singapore’s real estate landscape.

“With the 6-storey commercial conservation shophouse being offered for sale on a fully tenanted basis, the incoming buyer can enjoy the security of immediate rental income and hold the property for stable long-term rental yield, while enjoying the strong potential for a considerable capital appreciation. We expect keen interest from hoteliers, both local and overseas corporates, institutional funds, private funds, family offices and ultra-high net worth individuals.

“Based on the guide price of S$35 million which works out to approximately S$3,945 psf on the build-up area, this pricing is an attractive one in the current market and for a long leasehold tenure, and especially when the demand for commercial shophouses continues to be supported, drawing buyers from both local and overseas wealth markets. Furthermore, the government’s cooling measures on 27 April 2023, which raised the Additional Buyer’s Stamp Duty for foreigners to buy any residential property from 30% to 60%, have seen an uptick in foreign investors’ interest to purchase commercial properties instead, not least conservation shophouses zoned as ‘commercial’ with their historic charm.  

“Overall, Singapore’s strategic location, stable political and economic environment, strong talent pool, proximity to key markets, and vibrant business ecosystem makes it an attractive location for large multinational companies, international retailers and service providers looking to establish a presence in Asia. With leasing momentum picking up strongly and capital values still on the increase, this is a timely opportunity for buyers to enter the market. This unique asset would be strategically placed to capitalize on the potential for strong capital value and income upside.”

As a full commercial zoned property, this purchase is open to both local and foreign buyers with no additional buyer’s stamp duty (ABSD) or seller’s stamp duty (SSD).

Brilliance Capital is the sole marketing agent for this Expression of Interest.

The Expression of Interest closes on 9 November 2023, Thursday at 3.00 p.m.

About Brilliance Capital Pte. Ltd.

Brilliance Capital is a full-service real estate agency that assists and advises ultra-high net worth individuals, local and foreign family offices, as well as property developers, publicly listed companies, and local and overseas private funds on the purchase and sale of real estate assets. Founded and led by Sammi Lim, the firm engages the industry’s most elite professionals, and boasts a dynamic team of agents specializing in the sale and leasing of the entire spectrum of properties which include residential condominiums, landed houses, commercial properties, industrial assets, collective sales, as well as consultancy and advisory services.