Nine Retail Assets Up for Sale with JLL Advising the Transactions

SINGAPORE, April 18, 2024 – JLL (NYSE: JLL), as the exclusive advisor to DFI Retail Group (DFI), announced today the sale of eight freehold strata retail units at Siglap V, and a single Housing Development Board (HDB) retail unit at 181 Lorong 4 Toa Payoh.

Collectively, the nine commercial assets will be marketed with guide prices of S$32 million and S$16.5 million for Siglap V and the Toa Payoh unit, respectively. On total area, this translates to approximately S$3,012 per square foot (psf) for Siglap V and S$1,696 psf for the Toa Payoh unit, respectively. 

Details of the Assets

Situated in a freehold, 4-storey mixed-use development, the eight retail units occupy a combined strata area of about 10,624 square feet (sq ft). The units, located on the ground floor, are currently leased to two well-known retail brands – CS Fresh and Guardian. The 24-hour grocery retailer, CS Fresh, operates out of almost 90% of the space (9,418 sq ft), spanning across seven of the eight amalgamated units. Health and beauty retailer, Guardian, occupies the remaining unit of 1,206 sq ft.

The last commercial asset is situated prominently on the ground floor of a full commercial HDB block located at 181 Lorong 4 Toa Payoh. With a remaining tenure of about 47 years, the full 9,731 sq ft unit is currently occupied by a supermarket retailer. A sizeable retail unit, it has potential for further subdivision or conversion to alternative uses, subject to approval from relevant authorities. 

As a triple frontage corner unit spanning 28m to 38m wide, it enjoys high visibility from the main arterial roads of Lorong 4 Toa Payoh and Toa Payoh Central. The HDB shop unit is also located directly next to the Toa Payoh Central Carpark with a dedicated loading and unloading bay, allowing more possibilities for utilizing the space.

“Large retail assets with such highly visible street frontage are rarely available for sale and typically tightly held as these assets possess strong rentability and ability to generate cashflows during both the peaks and troughs of economic cycles. These commercial assets present an alluring proposition for investors to acquire prime retail assets located within well-established suburban residential neighbourhoods,” says Terry Wong, Senior Director, Capital Markets, JLL Singapore.

Acquisition Options & Leaseback Arrangements

DFI currently owns and operates all nine commercial assets. It is looking to divest all eight strata units at Siglap V in a long-term leaseback arrangement. The HDB retail unit at Toa Payoh will be sold on vacant possession. 

There are two options available to potential investors. The first is the acquisition of holding entity, Jelita Property Pte. Ltd, where investors can purchase 100% of the issued share capital. This would see the buyer own all nine commercial assets. The second option is to purchase the units, either Siglap V or the HDB retail unit, as individual assets. For the eight units at Siglap V, these would be grouped together as a singular asset.

“With the sale and leaseback arrangement in place for Siglap V – securing CS Fresh and Guardian as long-term blue-chip tenants – investors are able to gain access to a freehold core retail offering with defensive income at a palatable quantum,” added Wong.

Catchment & Potential Upside

The nine commercial assets are in well-established and mature residential enclaves, enjoying high pedestrian footfalls and strong retail catchment. 

Siglap V is sited within the affluent Frankel subzone in District 15, an area with a large community from nearby low-rise and landed housing. It provides convenience to the residents in the area as one of the only essential grocery and health & beauty retailers in the immediate locality. 

Several upcoming developments are expected to be completed soon including the new Siglap South Community Centre and Siglap MRT station – expected to start operation in June 2024. Plans are also underway to redevelop the nearby Bayshore area into a waterfront residential estate. Even higher footfalls can be expected within the precinct especially with the influx of new residents in the future.

On the other hand, the HDB shop unit is located in the bustling and densely populated HDB town centre of Toa Payoh. The unit is a mere 7-minutes’ walking distance from Toa Payoh MRT station and Toa Payoh Bus Interchange. It is also in the vicinity of popular neighbourhood destinations like HDB Hub, Toa Payoh Public Library and Toa Payoh Central Community Club.

The Toa Payoh locality is also to be further enhanced and revitalized upon the completion of the upcoming Toa Payoh Integrated Development (TPID). A new lifestyle destination with sporting and healthcare facilities, it is slated for completion by 2030.

The EOI campaign will close on Thursday 23 May 2023 at 3pm.