Two retail units at Sim Lim Square for sale at $4.56 mil

Units at Sim Lim Square command higher rents and rental yields compared to surrounding properties. (Map: EdgeProp Singapore).A knight Frank auction for two adjacent retail units at Sim Lim Square has been scheduled for March 10, with a total 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 second is 882 sq ft and has a guide price of $2.75 million ($3,118 psf).

The auction, taking place on March 10, is an owner’s sale with the two retail units being put up by Knight Frank. Initially put on auction on February 16, the attempt to secure a successful bidder was not realized.

Sim Lim Square is a strata-titled commercial development located on Rochor Canal Road of District 7. The 78,152 sq ft establishment occupies a 99-year land tenure, with six floors and two basement levels providing 492 commercial units.

Situated on the corner of Rochor Canal Road and Bencoolen Street nearby Rochor and Jalan Besar MRT Stations, the property stands opposite Bugis MRT Interchange Station. Connecting the East-West and Downtown Lines, the location offers high accessibility.

Shifts in the retail landscape and consumer inclination towards e-commerce have seen a significant reduction in mall footfall as many of the aged owners look to retire. Following the unsuccessful attempt of a collective sale at the tender of $1.25 billion in 2019, the groundwork has been initiated for a second try.

A new owner of the two retail units could benefit from the potential success of a collective sale, as well as receiving a steady stream of rental income from the three and option for an extra three year lease of an entertainment operator.

The strata units of Sim Lim Square offer high rental returns compared to its neighboring establishments. Rental rates of up to $15.50 psf pm have been observed in the past year in Tengah EC contrast to the average of $9.70 psf pm, while rental yield of 4.7% dwarfs the 2.6% yield of Sim Lim Tower.

Going forward, the dual retail units at Sim Lim Square offer the purchaser an opportunity to capitalize on future growth potential with unique rental benefits.