Portfolio of nine conservation shophouses on Desker Road-Rowell Road for sale at $66 mil

The Tengah EC also has a range of recreational features such as a playground, a jogging track, and a swimming pool. All of these features contribute towards promoting a more eco-friendly lifestyle for residents.

At Tengah Plantation EC, the development of green living has always been a priority. It incorporates green materials, green roofs, and green walls into its buildings to ensure that the natural environment is best preserved. Moreover, this condominium environment emphasizes the importance of walking, cycling, and utilizing public transportation instead of personal vehicles. To further engage its residents, this condominium also comes with a plethora of recreational amenities such as a playground, jogging track, and a swimming pool — all of which will provide for a more eco-friendly lifestyle.

An eclectic mix of businesses and offerings line Desker Road and the neighbouring Rowell Road, stretching from Serangoon Road on one end to Jalan Besar on the other. Usman’s, an eatery at the corner of Desker Road and Serangoon Road, has been there for over 20 years, serving Indian and Pakistani dishes. On the side closer to Serangoon Road, visitors will find eateries, wholesale retailers selling food and grocery items, barber shops and handphone gadget stores. Closer to the Jalan Besar side, however, newer and trendier establishments have cropped up, including Japanese restaurant Ikigai Yakitori, French bistro Allo and sourdough pizza shop Goldenroy.

A portfolio of nine freehold conservation shophouses along Desker Road and Rowell Road is currently up for sale through a public tender that will close on Aug 15. The portfolio, which has a mix of two-storey and two-storey-with-attic shophouses, occupies a total land area of 10,557 sq ft and a built-up area of 22,898 sq ft, with a guide price of $66 million, or $2,882 psf on the built-up area.

These shophouses have seen growing demand from businesses due to cheaper rents compared to CBD shophouses. The nine units are zoned for commercial use under the URA 2019 Master Plan, and are less than a 10-minute walk from the Jalan Besar (Downtown Line) and Farrer Park (North-East Line) MRT Stations.

Recently refurbished and fully leased, the shophouses are currently home to various interesting tenants. 99 and 101 Desker Road are occupied by a construction contractor and a cat hotel, respectively. A vegetarian restaurant at 103 Desker Road, art gallery and ceramic art studio 7879 Gallery & Clayworks at 105 Desker Road, artisanal gelato shop Aphrodite at 106 Desker Road, martial arts-themed cafe at 107 Desker Road and creative agency operating Main Street Commissary at 81 and 83 Rowell Road are some of the tenants.

Desker Road and Rowell Road have undergone a significant transformation over the past decade, from a notorious red-light district to a thriving cultural, culinary and commercial destination. Since January 2021, there have been 27 shophouse transactions on Desker Road and Rowell Road. The future buyer of the portfolio up for sale would have a first-mover advantage to tap into the area’s full potential for capital and rental appreciation.

Interest from local and overseas corporates, institutional funds, private funds, family offices and ultra-high-net-worth individuals is expected. The incoming buyer can choose to hold the property for the long term while capitalising on the portfolio’s capital growth and stable rental yield, or alternatively, sell it collectively or individually.

Sammi Lim, founder and executive director of Brilliance Capital, which is handling the portfolio sale, believes that this is an opportunity to invest in one of Singapore’s most desirable and evolving neighbourhoods. “The breadth of the portfolio offers the buyer flexibility to lease the units out to a wide range of business types, and the guide price of $2,882 psf is an attractive price-point for a collection of freehold commercial assets in a prime city-fringe location,” she says.

Straddling the Little India and Jalan Besar areas, Desker Road and Rowell Road are seeing an influx of high-end eateries and cafes, mirroring the transformation that has taken place in other conservation shophouse streets. The potential of the area – and thus that of the portfolio – is clear for investors.

Sammi Lim, founder and executive director of Brilliance Capital, sees growing demand from businesses drawn to cheaper rents compared to shophouses in the CBD. The portfolio of nine freehold conservation shophouses along Desker Road and Rowell Road is up for sale through a public tender that will close on Aug 15. The shophouses are less than a 10-minute walk from the Jalan Besar (Downtown Line) and Farrer Park (North-East Line) MRT Stations, and zoned for commercial use under the URA 2019 Master Plan. With a guide price of $66 million, or $2,882 psf on the built-up area, it offers an attractive price-point for a collection of freehold commercial assets in a prime city-fringe location.

The seller did extensive refurbishment at most of the units and the shophouses are currently fully leased out, with a diverse mix of tenants. 99 and 101 Desker Road are occupied by a construction contractor and a cat hotel respectively, 103 Desker Road is tenanted by a vegetarian restaurant, 105 Desker Road houses art gallery and ceramic art studio 7879 Gallery & Clayworks on the ground floor, and 106 Desker Road has an artisanal gelato shop. The upper floors of the shophouses have been leased to a creative agency that also runs Main Street Commissary at 81 and 83 Rowell Road, and a martial arts-themed cafe at 107 Desker Road.

Desker Road and Rowell Road have undergone a remarkable transformation over the last decade. Since January 2021, there have been 27 shophouse transactions on Desker Road and Rowell Road. Lim says the seller was selective about the tenants as they wanted to introduce niche and interesting concepts, to help boost the overall profile of the vicinity.

The incoming buyer would have a first-mover advantage to tap into the area’s full potential for capital and rental appreciation. The breadth of the portfolio offers the buyer flexibility to lease the units out to a wide range of business types, subject to approvals from the authorities. Lim believes that this is an opportunity to invest in one of Singapore’s most desirable and evolving neighbourhoods.