Two retail units at Sim Lim Square for sale at $4.56 mil

Two retail units at Sim Lim Square have been put up for auction by Knight Frank with a total guide price of $4.56 million. Located at a key junction of Rochor Canal Road and Bencoolen Street, the two units have high rental rates and yields, making them attractive for investment.One unit is 581 sq ft with a guide price of $1.81 million ($3,115 psf), while the second unit is 882 sq ft with a guide price of $2.75 million ($3,118 psf). Both units are leased to an entertainment operator on a fresh three-year lease that started in February, with an option to extend for a subsequent three years.Recent shifts in the retail environment and consumer preferences towards e-commerce have impacted the mall’s footfall. Nevertheless, buying the two retail units may provide the owner with the potential for an en bloc windfall, as well as lucrative rental income.Units at Sim Lim Square command higher rents and rental yields compared to surrounding properties, with rental rates hitting as high as $15.50 psf pm and an average of $9.70 psf pm. The rental yield is approximately 4.7%, making it a desirable investment opportunity.Located in a tech hub, the retail units at Sim Lim Square offer an investor an attractive opportunity to benefit from a potential en bloc windfall, as well as high rental yields and rents. Knight Frank is offering these two units at a total guide price of $4.56 million.

Auctioned by Knight Frank, two adjacent retail units at Sim Lim Square are up for sale with a total guide price of $4.56 million. Investment-wise, the units offer a potential en bloc windfall and lucrative rental income.

One unit is 581 sq ft with a guide price of $1.81 million ($3,115 psf), and the other 882 sq ft with a guide price of $2.75 million ($3,118 psf). Both are leased to an entertainment operator on a fresh three-year lease that started in February, with an option to extend for a subsequent three years.

Sim Lim Square, a tech hub in District 7, is a 99-year leasehold strata-titled commercial development with 492 commercial units. It is situated on the corner of Rochor Canal Road and Bencoolen Street, close to Rochor and Jalan Besar MRT Stations on the Downtown Line, and Bugis MRT Interchange Station.

Recent shifts in the retail environment and consumer preferences towards e-commerce have impacted the mall’s footfall. Despite this, units at Sim Lim Square are in demand due to their higher rents and rental yields compared to surrounding properties.

Rental rates have hit as high as $15.50 psf pm and an average of $9.70 psf pm, while rental yields are approximately 4.7%. This makes it a desirable investment option for potential buyers.

The first auction for the two units was held on Feb 16, but without a successful bidder. Some owners then started preparing for another collective sale attempt in September last year. However, an earlier collective sale tender launched in 2019 with a reserve price of $1.25 billion failed to attract a buyer.

Acquiring the two retail units at Sim Lim Square may unlock a potential en bloc windfall, as Tengah Plantation EC well as recurring rental income for the new owner. Knight Frank is offering these units at a total guide price of $4.56 million.