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Four Queensway retail units up for sale
The four units include the prime street-facing second-floor unit now leased to McDonald's
By: Kalpana Rashiwala
FOUR freehold strata retail units at Queensway Shopping Centre, with up to 10,388 square feet in all, have been put up for sale.
CBRE and Knight Frank, the joint sole marketing agents for the property, said they expect to receive "strong offers in excess of $32 million" or $3,080 per square foot (psf).
The four units include the prime street-facing second-floor unit now leased to McDonald's.
Units in the more than 30-year-old "sports mall" have enjoyed a boost in value since the 99-year-leasehold strata shops in the nearby Alexandra Central sold like hot cakes for between $4,000 psf and $8,000 psf in January.
The four units on offer are now leased at a monthly rental of $50,000, which translates to a nearly 2 per cent net yield based on the price of $32 million.
Besides the 2,734-sq-ft unit leased to McDonald's, the 7,654 sq ft taken up by the three adjoining units on the third level are leased to Sports Link.
Queensway Shopping Centre, at the corner of Alexandra Road and Queensway, is a mixed development which includes apartments. The four units hold about 11 per cent of the share value in the overall development.
The units are owned by Royal Assets Pte Ltd, which is controlled by three parties - Royal Brothers group co-founders, brothers Raj and Asok Kumar, and lawyer Laurence Wee.
CBRE and Knight Frank are conducting an expression-of-interest exercise for the four units, which closes on April 2.
The preference is to find a single buyer for the four units, although the sellers could be open to selling the units in two lots - one lot comprising the second-floor unit, and the other, the three adjoining units in the floor above - if this arrangement fetches a higher price.
Based on caveats lodged at Queensway Shopping Centre in the past six months, shops in the development have changed hands at between $3,056 psf and $6,341 psf.
Knight Frank executive director Mary Sai notes that at Alexandra Central, a large retail unit is still available; it is about 7,800 sq ft and the developer is calling a price of $3,300 psf.
CBRE associate director Sammi Lim expects the four Queensway Shopping Centre retail units to draw strong interest from retailers, private-equity investors, family offices and high net worth individuals from Singapore and overseas.
Queensway Shopping Centre's offerings include ample car park space in the basement.