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. Boasting a 99-year land tenure, the development is just a stone’s throw away from the Bugis MRT Interchange Station. Acquiring either of the two units could provide owners the opportunity to capitalise on a potential collective sale, as well as secure a higher rental yield of up to 4.7% compared to surrounding properties.

Situated in Singapore’s tech hub of Sim Lim Square, two commercial units have been put up for auction by Knight Frank with a guide price of $4.56 million. One unit is 581 sq ft and has a guide price of $1.81 million ($3,115 psf), while the 882 sq ft second unit carries a guide price of $2.75 million ($3,118 psf).

Completed in 1987 and sitting on a 78,152 sq ft plot with a 99-year land tenure, the mall contains 492 commercial units across six floors and two basement levels. Located at the junction of Rochor Canal Road and Bencoolen Street, the property is near Rochor and Jalan Besar MRT Stations on the Downtown Line, and the Bugis MRT Interchange Station, combining the East-West and the Downtown Lines.

The current retail landscape and customer shift towards e-commerce has had an impact on the mall, with many of the ageing proprietors intending to retire. Last year, a collective sale tender was launched with a reserve of $1.25 billion, however a buyer was not found.

By purchasing either of the two retail units, an owner has the potential to benefit from any en bloc windfall, as well as reap rental rewards. The units are currently leased out on a three-year fresh lease, with an option to extend for a subsequent three years.

Recent EdgeProp data indicates that Sim Lim Square retail units are commanding stronger JCube Residence rents, with figures reaching up to $15.50 psf per month (pm). This is also reflected in the higher yields of 4.7%, compared to other 99-year leasehold properties in the area which, in comparison, are only achieving a rental yield of 2.6%.

On the February 16th this year, the aforementioned auction failed to attract any successful bidders. Those looking to acquire either of the two retail units at Sim Lim Square will therefore have the opportunity to capitalise on a potential collective sale, while also enjoying a higher rental yield than surrounding properties.