For Sale: A pair of freehold shophouses in Lavender / Jalan Besar with value-add potential

Savills Singapore, as the exclusive marketing agent, is pleased to offer for sale: 284 & 286 Lavender Street - a pair of freehold shophouses with strong value-add potential in a transformational locale via an Expression of Interest (EOI) exercise.

The pair of shophouses is highly visible and commands a prominent frontage on Lavender Street which offers the owner signage and naming rights, subject to authority approval. They sit on a combined land area of approximately 3,520 square feet. Under the Master Plan 2019, both the shophouses are zoned “Residential with Commercial at 1st Storey” with a plot ratio of 3.0. Together, they have a maximum allowable floor area of approximately 10,560 square feet.

Conveniently located in the city fringe, the assets are within a 3-minute walk to Bendemeer MRT station and a 10-minute drive to the Central Business District (CBD). They are also well connected to other parts of Singapore via major expressways such as the Central Expressway (CTE) and Kallang Paya Lebar Expressway (KPE). Rich in history and cultural heritage, the Lavender and Jalan Besar area has attracted a diverse mix of tenants which includes boutique hotels, hipster cafes and reputable co-living spaces.

There are several value-add potentials for the incoming purchaser to explore. First, buyers can maximise the plot ratio of the property by adding a 6-storey rear extension and increasing the GFA to a potential maximum area of 10,560 sq ft, subject to the approval from relevant authorities. Second, there is the potential to convert the upper floors for alternative uses including co-living, serviced apartments, fitness centre, showroom, home & living, childcare, educational activities and healthcare/medical amongst others, subject to authorities’ approvals. Lastly, the buyer can amalgamate both shophouses together and has the flexibility to configure the space to suit their own use requirements or tenant’s needs.

Ms. Sophia Lim, Director, Investment Sales & Capital Markets at Savills Singapore, said: “In recent years, the Lavender and Jalan Besar precinct has been undergoing rejuvenation and has been gentrified into a vibrant lifestyle locale. 284 and 286 Lavender Street provide astute investors, owner-occupiers, and developers a unique value-add opportunity to acquire a pair of shophouses in a city fringe locale.

Ms Lim also shared: “There has been a flurry of transaction activity in the Jalan Besar district due to a spillover of demand from Districts 1 and 2 shophouses as the price gap between CBD and city fringe shophouses is significant. Investors perceive city fringe shophouses to provide relative value with room for capital upside. 284 and 286 Lavender Street presents an opportunity for buyers to purchase a pair of freehold heritage shophouses with strong value-add potential in an exciting and fast-growing enclave.”

Parties are invited to offer for the shophouses individually or collectively as a portfolio. The guide price for 284 & 286 Lavender Street is at $6.25 mil each or $12.5 million collectively.

The Expression of Interest exercise closes on 19 October 2023 (Thursday) at 3pm.