Singapore, 1 June 2017 – CBRE is pleased to launch the Public Tender sale of Block 631 Ang Mo Kio Avenue 4, #01-906, a prime heartland coffee shop strategically located within the Ang Mo Kio residential enclave – one of Singapore’s most densely populated neighbourhoods with extremely high footfall and large catchment of residents.
The Property, currently fully leased as an eating house, commonly referred to as a coffee shop, or Kopitiam; comprises 10 Food and Beverage (F&B) stalls on the ground floor and a living quarter at 2nd-storey with a total area of approximately 4,079 sq ft. To better serve the needs of F&B operators and patrons, a total of approximately 1,345 sq ft of Outdoor Refreshment Area (ORA), or sheltered outdoor dining area, located right outside of the Property, has been approved by the relevant authority.
The existing seating capacity can accommodate approximately 270 patrons, and are spread over the internal area and ORA. There is further flexibility in the seating capacity and can be further enhanced as extra tables and chairs can be easily added to cater to higher customer volume during peak hours. Change of use to other trades may also be considered by the buyers, and subject to HDB’s approval.
The Property is located within Ang Mo Kio established housing estate with a large catchment of residents. It is estimated that there are more than 26,000 residents located within an approximately 650-metre radius from the Property. Being situated at the corner of Block 631, the Property has
an excellent main road frontage onto Ang Mo Kio Avenue 4. It is also located approximately 500 metres from Yio Chu Kang MRT station and bus interchange and the future Lentor (Thomson – East Coast Line) MRT station. Educational institutions such as Anderson Junior College, Presbyterian High School, Yio Chu Kang Secondary School are all located within the vicinity.
Sammi Lim, Director, Capital Markets, CBRE said, “Prime Housing and Development Board (HDB) coffee shops are a rarity, especially in such a prime heartland location. They have always been tightly held and the opportunities for purchase are extremely rare. The Housing and Development Board has ceased selling coffee shops and leases the ones in their stock, which makes this sale offering very attractive.
Local coffee shops represent a unique way of life for Singaporeans. Being well-located in a matured and dense neighbourhood, the Property enjoys the added bonus of being right in front of a public car park with ample car parking facilities, near wet market and transport nodes, commanding good visibility.
This sales offering will attract both the end-users who predominantly are the F&B operators, as well as investors who are seeking strong and consistent income returns. End-users who are facing escalating rentals to operate will be keen to acquire their own premise and establish their presence in such a highly sought-after location. With the coffee shop business remaining as an extremely resilient trade, we do expect to receive interest from new entrants to this sector who are looking to hold for medium to long term investment as they envision to tap into its strong potential for future rental and capital value growth“.
Past sales of coffee shops have seen prices set at record levels. A coffee shop at Bukit Batok Street 11 was sold at $31 million, or $6,857 psf in 2015. Another one at Hougang Avenue 4 was sold at $23.8 million, or $5,912 psf in 2013.
Although this property has a living quarter attached to it, HDB’s prevailing policy is that if such properties are sold or tenanted out as a commercial property under a single title, Singaporeans and Singapore Permanent Residents may purchase them. Foreigners or companies may also purchase the Property.
CBRE is the sole marketing agent for this Public Tender Exercise.
The Public Tender closes on 4 July 2017, Tuesday at 3 pm.