Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm is pleased to announce that it has successfully brokered the sale of 223/225/227 Geylang Road, Singapore 389283/ 389285 / 389287 (the “Property”) for $18.68 million.
Cushman & Wakefield was appointed by Shincon Industrial to conduct the sale via a private treaty. The row of three shophouses have a combined site area of approx. 4,319 sqft with a current gross floor area of approx. 6,756 sqft. The sale comes with an in-principle Written Permission by URA to allow for a five-storey extension with roof terrace with a potential to increase future gross floor area by ~80% based on MP2019.
Through this divestment of its non-core assets, Shincon Industrial, Singapore’s leading Civil Engineering and Building Contractor firm established in 2004, is expected to book a profit in excess of $8million on this asset since its acquisition less than four years ago.
“We are pleased with our shophouse divestment as this strategic decision underscores our commitment to optimise investment portfolio and maximise shareholder value. By freeing up valuable capital, we can reinvest into our core business operations and future growth initiatives” said Joseph Sin, Managing Director of Shincon Industrial Pte Ltd.
“We are delighted to have played a pivotal role in Shincon’s strategic divestment of its non-core assets. The successful transaction further bolsters investor’s confidence in the shophouse market where buyers see extrinsic and intrinsic value within this vernacular asset class. We believe demand from both local and foreign buyers will continue to be strong as shophouses located in unique heritage and strategic location make a compelling addition to investor’s investment portfolio for the long term.” Mr. Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield added.
