SINGAPORE (EDGEPROP) - The multi-storey carpark at People’s Park Complex, which spans levels three to six, is up for sale at $42 million. The carpark podium has a strata area of 182,340 sq ft with 648 parking spaces, 56 motorcycle bays and a 2,809 sq ft restaurant unit at the sixth level, which is an open-air carpark. The carpark podium is at the annex of the mall and has a direct connection to the apartments and offices above. (See also: Car park and retail unit at People’s Park Complex for sale at $55 mil)
Located along Eu Tong Sen Street, People’s Park Complex is a 31-storey, mixed-use development with offices and apartments sitting on top of a shopping podium and the multi-storey carpark. It was built in the early 1970s, and comes with a 99-year lease from 1968. Hence, the property and the carpark have a remaining lease of 46 years. The building has a direct connection to Chinatown MRT station.
The price of $42 million translates to $208 psf for the carpark and $1,673 psf for the restaurant unit, according to Sammi Lim, founder and executive director of Brilliance Capital, the exclusive marketing agent for the carpark space. The price translates to $57,000 per parking space.
The price per parking space is “attractive” compared to the more than $360,000 per parking spot that the freehold carpark at Holland Road Shopping Centre was sold at last December, and the more than $70,000 per parking space that Parklane Shopping Centre carpark was transacted at.
As carparks within a development are considered communal space and no longer have separate strata titles, they are “one of the most tightly held asset classes” that are rarely available for sale, and hence are sought-after, notes Lim. The gross yield for such assets is about 4%, she estimates.
The buyer of the carpark at People’s Park Complex will enjoy immediate rental income from the restaurant unit, which is said to have secured a new tenant, a Chinese restaurant. The property presents an opportunity for carpark operators looking to acquire carpark assets for their portfolio or for aspiring carpark owners who want to operate the properties themselves. There is also opportunity for investors who want to consider change of use through decanting part of the carpark for alternative commercial use, adds Lim.
The strata-titled carpark is open to purchase by both local and foreign buyers, and is not subject to additional buyer’s stamp duty or seller’s stamp duty. The property has been put up for sale by public tender which will close on July 29.