20 Units in Parkway Centre Up For Sale
A portfolio of 20 strata-titled office units in Parkway Centre is being put up for sale via an expression of interest exercise, at a total indicative price of up to $34.6 million. Parkway Centre, in Marine Parade, is a 13-storey suburban commercial building with retail units on the first floor and office units from the second to 13th floors.
The 20 office units on sale have a total strata area of 21,646 sq ft, with about 65 years left on the lease.
Unit sizes range from 732 sq ft to 1,356 sq ft, including six contiguous units with a combined strata area of 5,748 sq ft.
Currently, this portfolio enjoys an occupancy rate of about 78 per cent, with a tenancy mix that includes enrichment and tuition centres, and a music school, among others. Assuming a 100 per cent occupancy rate, the investment will reap a yield of about 4 per cent.
“Strata-titled commercial units, with a stabilised income stream located within activity areas such as those around Parkway Parade, remain appealing to investors, even in current market conditions,” said Mr Shaun Poh, Cushman & Wakefield’s executive director for capital markets.
“In addition, the subject locality has a large resident population catchment of approximately 563,000, which provides critical mass to support the business activities there.”
The resident population comprises people in Marine Parade, Kallang, Geylang and Bedok. Parkway Centre is also close to public transportation facilities and connected to other parts of Singapore via major arterial roads such as Marine Parade Road, Still Road and the East Coast Parkway.
The· portfolio has an indicative price of $1,550 per square feet (pst) to $1,600 psf on strata area. Cushman & Wakefield expects interest from investors and end-users, who may consider taking over the units when the leases expire.
Said Mr Poh: “For investors, there is potential for future upward rental reversion, and buyers can also consider an alternative exit strategy of selling the strata units individ-ually in the future. It is worth noting that a strata office unit was recently transacted for approximately $1,586 psf in Parkway Parade.”
The expression of interest exercise closes on Sept 22.