Portfolio 16 Freehold Retail Units Crown Centre Market 338 Mil

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Nestled in the prestigious District 10, Crown Centre is a highly coveted freehold mixed-use development comprising strata retail and office space on the first two levels, with apartments located above. Boasting a prime location at 557 Bukit Timah Road, it is surrounded by upscale landed housing, making it a desirable address for businesses looking for a sophisticated and exclusive setting.

“Our building is a prominent island site with frontages along Bukit Timah Road, King’s Road, and Queens Road,” says Sammi Lim, founder and executive director of Brilliance Capital, the marketing agency for Crown Centre.

Recently, Brilliance Capital, the exclusive marketing agency for Crown Centre, has launched a portfolio of 16 strata retail units on the ground floor for sale. It is the first time in 13 years that these units have been made available for sale and the expression of interest (EOI) will close on September 23.

The portfolio has a guide price of $33.8 million, equivalent to $5,688 per square foot, based on the total strata area of 5,942 square feet.

“The acquisition of these units will make the buyer the single largest owner in Crown Centre,” explains Lim.

The portfolio is fully leased to a diverse range of tenants, including popular fast food chains such as Domino’s Pizza, Popeyes, and Pizza Hut. It also features enrichment centres such as PBL Academy, The Pique Lab, and Kelly Academy Chinese Tuition. Other services include a dry cleaning and laundry service, a pet grooming salon, and a hair studio.

According to Lim, this investment offers a stable rental income and gives the buyer significant influence over the property’s long-term management and strategic direction. This is especially important in the event of a collective sale, as the portfolio accounts for about 30.5% of the development’s share value.

The current seller, Best Reward, is part of Far East Flora Holdings, a major wholesaler and retailer of flowers, plants, and accessories with operations in Singapore, Hong Kong, Malaysia, and online. The group also specializes in interior landscaping through its O2Plants division.

In November 2013, Best Reward purchased all 19 ground-floor units in a deal brokered by CBRE. The units accounted for 39.7% of the development’s share value at that time. The units were launched for sale in November 2012 with an indicative price of $32 million or $4,000 per square foot. However, the final purchase price was not disclosed.

In the past few years, the company has sold two small internal units on the first level: #01-08 (323 square feet) in 2018 and #01-09 (215 square feet) at the end of 2014. The latter unit was purchased for approximately $920,000, or $4,274 per square foot, in a deal brokered by Lim.

The largest unit on the ground floor, #01-03 at 1,245 square feet, is not included in the current portfolio for sale. This unit was previously occupied by Crown Bakery for a decade and has been leased out since early 2015 to Italian restaurant Burrata Joy & Gustavo Lapasta Bukit Timah.

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The walk-up apartments at the three blocks on Duke’s Road and Bukit Timah Road are operated as co-living spaces by The Assembly Place. The ground-floor shops, which are leased to F&B and other tenants, are also managed by The Assembly Place.

The demand for prime, freehold assets is on the rise, according to Lim. She points to the recent sale of seven ground-floor strata retail units at Holland Road Shopping Centre for $84 million. These units are now occupied by CS Fresh supermarket and also include the basement car park. Lim was also the broker for the earlier sale of the ground-floor units in 2016 to the family of Macau property tycoon Loi Keong Kuong for over $61 million or $4,976 per square foot, based on a strata area of 12,260 square feet.

In December 2021, Hillcrest Investments, an affiliate of Indonesian billionaire Sukanto Tanoto’s Royal Golden Eagle, purchased three adjacent freehold blocks at 551-553 Bukit Timah Road and 6-8 Duke’s Road. The total purchase price was $53.9 million or $1,504 per square foot per plot ratio, inclusive of development charges. Based on a gross plot ratio of 3.0 and a 60:40 residential-to-commercial ratio, JLL, which facilitated the deal, estimated the price to be $1,504 per square foot. Instead of redeveloping the site, RGE hired The Assembly Place to operate the walk-up apartments as co-living spaces and manage the fully tenanted ground-floor shops.

King’s Arcade, a freehold mixed-use development completed in 2002, is also located nearby. The four-storey block has 14 apartments on the upper floors and three shop units on the ground floor. The most recent transaction for a shop unit there was in 2010 when a 2,379 square foot unit changed hands for $3 million, or $1,261 per square foot, based on lodged caveats.

Crown Centre also has a gross plot ratio of 3.0, assuming a redevelopment into a mixed-use project with a 60:40 residential-to-commercial ratio. The most recent transaction recorded at the development was in November 2021 when two adjacent second-level units totaling 807 square feet were sold for $2.55 million, or $3,159 per square foot.

At Coronation Shopping Plaza, a low-rise freehold mixed-use development along Bukit Timah Road, a third-level strata retail unit measuring 377 square feet was sold for $1.795 million, equivalent to $4,765 per square foot, in December 2021. The development, completed in 1979, comprises strata retail and office units, and apartments.

Lim notes that commercial properties in Bukit Timah are highly sought after due to their prime location in District 10, their proximity to MRT stations such as Botanic Gardens and Tan Kah Kee, and their accessibility via the Pan-Island and Bukit Timah Expressways. These attributes have resulted in strong rental performance and steady demand, making the area attractive to retail investors.

Crown Centre is also situated near prestigious schools such as Nanyang Primary School, Raffles Girls’ Primary School, Hwa Chong Institution, and National Junior College. This location ensures a consistent stream of high-quality foot traffic, which adds to the appeal of the property for potential tenants.

In addition to being located in an affluent residential enclave, Crown Centre also has limited retail competition in the immediate vicinity, further reinforcing its high occupancy rate and resilient rental yields. All these factors contribute to making Crown Centre an attractive investment opportunity.

Lim also anticipates that the future growth prospects for this area are promising. The upcoming Bukit Timah Turf City redevelopment is expected to add between 15,000 to 20,000 new homes, as well as green corridors, cycling paths, and community amenities. This transformation is likely to boost demand for retail and F&B offerings at Crown Centre, further enhancing its investment potential.