The Singapore Shophouse: Stanley Street

Page 1


Singapore. A world safe haven. A top-rated city, ranking alongside New York, London, Tokyo, Dubai, Shanghai & Berlin. A truly international city, that is home to many wealthy individuals from all over the world and many multinational companies. A great quality of life with superb infrastructure and excellent properties. A world class performing arts centre. A renowned dining destination with everything from local street food to Michelin star chefs. Iconic hotels from the Raffles Hotel to the latest Marina Bay Sands Resort & Casino.

One of the world’s best airports and transport hubs. Excellent digital infrastructure. An important financial centre with a strong predictable currency and one of the world’s major private banking hubs. In short, it is one of the preferred destinations for ultra-high net worth individuals. Singapore is the Monaco of the East.


Nestled among the gleaming high rises of this dynamic city are some of the most beautiful heritage buildings in the world: the Singapore shophouses.


Singapore heritage

Shophouses

Much like the Georgian townhouses in London’s Mayfair, Singapore heritage shophouses are more prized than the surrounding modern buildings. The 100 to 150-year-old Singapore shophouse was the world’s first multi storey commercial building, and it has become one of the rarest heritage buildings and most sought-after trophy assets for high net worth individuals and funds in the world. This is because, unlike heritage buildings in London, most of Singapore was redeveloped in the 1970s - 80s, and the majority of Singapore’s heritage buildings were lost.

Only 5,000 of these beautiful buildings are left, and only 3,200 are in the heart of the CBD. This is a fraction of the equivalent heritage buildings in any other major city.




In the late 1980s, a small area of the rapidly disappearing heritage shophouses in Chinatown were preserved. This comprises four districts: Telok Ayer, Tanjong Pagar, Kreta Ayer & Bukit Pasoh. Of these, Telok Ayer is the most prime district. Telok Ayer was the original CBD 150 years ago and the shophouse properties built in the district were the largest and most expensive at the time, and it remains so today. Telok Ayer is also the district that links directly to the modern CBD and the stock exchange area via Stanley Street.

THE CBD


As Telok Ayer grew as the commercial center of Singapore, increasingly wealthy Chinese merchants built shophouses to conduct trade and live in. Telok Ayer remains the most affluent area of the old town.

Telok Ayer Bay (late 19th century) showing the growth of shophouse buildings by the 1890s.

Telok Ayer in 1850.



Within Telok Ayer district, the most prestigious and expensive address is and has always been

Stanley Street.

Whilst other streets in Telok Ayer are home to lifestyle businesses, Stanley Street is more serious, and is home to investment and financial services companies mixed in with prestigious restaurants. If you are a private equity company or a hedge fund who desires a character office in a Singapore shophouse, Stanley Street is the preferred address. As a result, a Stanley Street shophouse has always commanded a price premium over the rest of Telok Ayer and the Chinatown historic district.

4, 5 & 6

Stanley Street FREEHOLD


YS T

LE

ST AN


Stanley Street sits right in the Centre of Singapore’s CBD

From the Tokio Marine Centre in Stanley Street, The Singapore Stock Exchange is a 6 minute walk No other historic district street directly adjoins the CBD.


By Invitation Only

Property details Fully restored & developed by a leading shophouse specialist, 4, 5 & 6 Stanley Street is the only group of shophouses on Stanley Street that presents as three

A unique opportunity to acquire

buildings together which have been connected across the top floor and

the best collection of heritage

and most beautiful on the street, with high ceilings and a beautiful exterior,

shophouses in Singapore’s CBD:

partially across the 2nd floor. The group of buildings are amongst the largest which have been fully restored and lit. The floorplates are large, square and efficient. The owner has carefully curated the tenants over the past nine years,

4, 5 & 6 Stanley Street

resulting in a concentrated first-class tenant profile. The three buildings have only five carefully selected tenants (three F&B on the ground floor, one in wellness, and one major professional services firm that occupies the top floor of the entire three buildings, and part of the 2nd floor). This provides one of the highest average rentals achieved in Chinatown with a strong yield relative to other Singapore heritage shophouses, and a stable and loyal long-term tenant base. 4, 5 & 6 Stanley Street presents a rare opportunity for a discerning buyer to acquire the best collection of shophouses in the best heritage shophouse street in Singapore.


Land Title Information

Tenancy Information

4 & 5 Stanley Street Description Two commercial 3-storey fully refurbished conservation shophouses in the Telok Ayer District Conservation Area, with development potential to add an attic. Tenure Estate in Perpetuity Granted on 04/05/1886 Lot Number TS2-99867P Land Area 2,702 sf

4 & 5 Stanley Street Level

Tenant

Establishment

Rent per Month

Lease Expiry Date

1 (4 Stanley St.)

Raku Raku Japanese Dining

Japanese Restaurant

S$13,000

31 July 2021

1 (5 Stanley St.)

The White Rocket Bar & Restaurant

S$13,000

31 May 2021

2 (4 & 5 Stanley St.) WeBarre

Wellness Studio

S$11,000

31 October 2021

3 (4 & 5 Stanley St.) Veson Nautical

Maritime Technology

S$13,200

31 August 2021

Total Rent per Month:

S$50,200

Average Rental psf:

S$7.08

Total Built-in Area 7,087 sf

6 Stanley Street

6 Stanley Street

Level

Tenant

Establishment

Rent per Month

Lease Expiry Date

Description One commercial 3-storey conservation shophouse (with a ‘glass-box’ modern meeting room attic) in Telok Ayer District Conservation Area.

1

Miznon

Restaurant

S$10,800

28 February 2023

2&3

Veson Nautical

Maritime Technology

S$17,000

31 August 2021

Tenure Estate in Perpetuity Granted on 04/05/1886 Lot Number TS2-99877C Land Area 1,328 sf Total Built-in Area 3,909 sf

Total Rent per Month: Average Rental psf: Approved Use Level 1: F&B Level 2: Office Level 3: Office

Land Area in Square Feet Total Land Area: 4,030 sf Total Built-in Area: 10,996 sf Total Rent per Annum: S$936,000

S$27,800 S$7.11

Annual Income Total Rent per Annum: S$936,000



Raku Raku Japanese Dining offers some of the best Japanese cuisine serving a tantalising collection of classic Japanese dishes. From the Chicken Cutlet Lunch Set to Ebi Tempura, its extensive menu is reflective of the range of dishes found in a typical Japanese Izakaya. Serving food with a philosophy of passion and sincerity, diners can expect simple but delicious and authentic Japanese fare in a heartwarming, homely restaurant. Raku Raku is an authenthic and award-winning Japanese Yakiniku restaurant frequented by Tokio Marine traders, with two locations here in the Singapore CBD.


Food & beverage tenant

Miznon

Founded in 2010 in Tel Aviv, Israel, Miznon is an international fine casual restaurant chain offering a new take on Mediterranean cuisine. Founder and Executive Chef Eyal Shani is one of the founding fathers of the new Israeli cuisine. He is the creator and the executive chef of a restaurant group with 18 restaurants worldwide. Shani is also serves as a Judge on Israeli "Master Chef� TV show. Miznon is an international chain featuring food from Michelin-starred chef Eyal Shani, with locations in New York, Melbourne, Paris, Tel Aviv, Vienna and now Singapore.


The WeBarre is the no.1 barre studio in Singapore, where it melds ballet techniques, yoga, pilates and strength training. Barre is a form of physical exercise, usually conducted in group classes in specialty studios. It is distinguished from other group fitness activities by its use of the ballet barre and its incorporation of movements derived from ballet. WeBarre is a franchise in Hong Kong and Singapore that teaches fitness classes around the countries, well-known for their Barre based approach to fitness.


Anchor tenant

Veson Nautical

We are proud to be Veson Nautical’s choice for the Asia Pacific head office of the Boston based shipping software firm. Veson Nautical has grown with the landlord, and we have redeveloped the entire top floor for their usage, opening the unit into a fabulous open-plan collaborative work space full of heritage character, with a high roof and no ceiling board. Modern facilities have been built in, with cassette aircons, fiber optic cables, a glass mezzanine meeting room, a reinforced structure, and fire proofing with a SCDF fire rated shutter. This substantial and expensive redevelopment has added significant value both to the asset and in creating a perfect tailor-made workspace for the tenant’s requirements.


Veson Nautical’s open plan office spans the entire top floor of all three buildings.


4, 5 & 6 Stanley Street: All redevelopment and asset enhancement completed with full regulatory approval.

URA grant of permission & BCA permit to carry out the structural wall opening work on the top floor

GRANT OF WRITTEN PERMISSION

Application ref no Our ref Date

Under The Planning Act (Cap 232¸ 1998Ed) Your Ref :

FOR OFFICIAL USE

Decision No: P260117-04H2-Z000

Date : 18 April 2017

LIM KEAN TEONG 125 BUKIT MERAH LANE 1 #03-184, SINGAPORE 150125

PART I - PARTICULARS OF APPLICATION 1.

Name and Address of Developer

ROMAN SCOTT 85 CIRCULAR ROAD SINGAPORE 049437

2.

Date application received

17 MARCH 2017

3.

Description of land which is the subject of the application

TS02 ON LOT 99867P , 99874N , 99877C 6 , STANLEY STREET,4 , STANLEY STREET,5 , STANLEY STREET (OUTRAM PLANNING AREA)

4.

Description of the works within a conservation area proposed in the application

Building Engineering Group (#12-00) Tel : 68044612 Fax : 63342561 E-mail : TAN_chong_lin@bca.gov.sg

BUILDING CONTROL ACT [Section 6] PERMIT TO CARRY OUT STRUCTURAL WORKS

Our Ref : ES20170125R0194 Subm No : 260117-04H2-Z000

: 2017-0127 : E3900-00090-2017 : 25/05/2017

Developer: ROMAN SCOTT 85 CIRCULAR ROAD #03-01 AALTO GROUP PTE LTD/BREUER GROUP PTE LTD SINGAPORE 049437

Builder: TEO CHENG KOK AZURE PTE LTD AZURE PTE LTD 23 KAKI BUKIT ROAD 4 #01-07 SYNERGY @ KB S417801

Qualified Person for Structural Work: ER. LIM KEAN TEONG TNJ CONSULTANTS LLP 125 BUKIT MERAH LANE 1 #03-184 TNJ CONSULTANTS LLP SINGAPORE 150125

Qualified Person For Supervision (Geotechnical):

Qualified Person for Architectural Work:

This PERMIT is granted, subject to the conditions in Annex (BE/CP/ Feb 2016) attached, for the commencement and carrying out of structural work in respect of: Project Title: NEW PARTY WALL OPENINGS AT THE 3RD STOREY UNITS OF THE 3-STOREY BUILDINGS TS02 ON LOT NO 99867P, 99877C, 99874N AT NO 4, 5 AND 6 STANLEY STREET (CHINA TOWN (TELOK AYER) CONSERVATION AREA)

NEW PARTY WALL OPENINGS AT THE 3RD STOREY UNITS OF THE 3-STOREY BUILDINGS TS02 ON LOT 99867P, 99877C & 99874N AT 4, 5 AND 6 STANLEY STREET (CHINATOWN (TELOK AYER) CONSERVATION AREA)

This permit is valid for all structural works approved under this project (including those in the structural plans approved subsequently). If any of the parties named above is different or has been changed, a fresh permit is required. MR. TAN CHONG LIN For COMMISSIONER OF BUILDING CONTROL

PART II – DETAILS OF THE PERMISSION 1. Conservation permission is granted under Section 14(4) of the Planning Act (Cap 232, 1998 Ed) for the application referred to in Part I for the works within a conservation area, shown in the plan registered as WPP1_ES20170125R0194.ent (hereinafter called the "approved plan").

Page 1 of 4

Decision No:

P260117-04H2-Z000

45 Maxwell Road, The URA Centre, Singapore 069118 Tel : (65)6221 6666 Fax : (65)6227 4772 Email: ura_DC_registry@ura.gov.sg Website: www.ura.gov.sg

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4. Existing Singapore investment companies with Singapore bank accounts and a relationship history are now valuable items. Having an existing vehicle with an established history, both with banks and the State, is high value added for an offshore investor. Even more valuable is a good and proven reputation with the IRAS, an income tax and property tax paying history, and a long

THE CALAMANDER GROUP INC SHOPHOUSE FUND - SIGNATURE ASSETS

Additional value-added from Calamander for overseas prospective buyers from HK and China

record of audited accounts filed with ACRA. Finding a shophouse held by a special purpose company with no other assets and the record above, and with pre-existing bank mortgage relationships, is priceless for investors. 5. We can offer our offshore investors a company vehicle holding the assets as a core part of the deal. All our shophouses are held by SPV’s with no other assets, with an 8-year full audit and tax record, and with an excellent income tax and property tax payment history with the IRAS. They are deemed as property management and investment companies, not traders, and thus free of future potential CGT.

Furthermore, all Calamander Shophouse

1. Many HK and Chinese Mainland HNWIs are focusing on Singapore as a

companies are backed by 15-year bank relationships and excellent track

safe haven. The opportunities, strengths and competitive advantages of

records for mortgage loans from all the main Singapore banks. Such is the

Singapore and its thriving real estate market are well understood, and we

reputation of Calamander refurbished and ‘tenant curated’ shophouses; they

won’t repeat them here. The ultimate prize is to buy landed real estate. The

come with an offer of a high LTV mortgage at our official valuation by major

only opportunity to pursue this option is via commercial heritage buildings -

Singapore banks. This is subject, of course, to the buyer passing the due

The Singapore CBD ‘Shophouses’, which have become trophy assets that are

diligence of the banks.

an essential part of any global HNWI’s portfolio. In essence, our assets and our reputation are good. If you, the client, can 2. However, we are hearing from potential investors about the problems they

provide the transparency the bank needs on yourselves, then you can

are currently facing from bank compliance. Something as simple as opening

immediately inherit the benefits of our tax efficient corporate structure, bank

a Singapore bank account, sending in funds, and passing through the

accounts, and bank relationships.

complexities of compliance and KYC are now very difficult, and time consuming.

The process, if successful, can take a year!

As a direct

6. The Calamander Group has been deemed a property manager and

repercussion of the 1MD scandal, the MAS has made the process highly

investor, not a trader by the IRAS, a position we have earned from over 15

restrictive and very conservative. Singapore banks cannot afford trouble with

years of investing, and never trading.

the MAS again, hence KYC has gone through the roof.

Shophouse SPV’s.

New company

This applies to our subsidiary

formation by investors is looked at carefully. 7. Summary: It takes at least a decade to build this history and reputation in 3. In addition, many investors don’t realize that Capital Gains Tax is a murky

Singapore. Our buyers can, if they wish, have an immediate head start to

area. Most investors assume that Singapore has no CGT. That is incorrect.

invest in Singapore, complete with audit and tax history, bank accounts and

Singapore tax law can deem you to be subject to CGT for shophouses or

valuable banker and mortgage relationships with the bank shophouse teams,

other landed real estate depending on your investment time horizon,

who know our buildings well and want to keep them on their books.

property activities, and tax paying track record.

Calamander is willing to assist buyers on this corporate structure and set up,

If you are deemed ‘a

property trader’, you will be subject to CGT upon sale.

and to open the doors to our long-term relationships in Singapore.


To have a discussion on acquiring Singapore’s best row of heritage shophouses at 4, 5 & 6 Stanley Street, please talk to one of our appointed agents, your independent financial advisor, family office or private bank. Further details on the buildings’ title search, floor plans, and additional recent media on the Singapore shophouse market can be provided separately upon request.

The Calamander Group specialises in acquiring, redeveloping & nurturing heritage buildings. Its head office is in a Singapore heritage shophouse. The company was founded in 2006, but its roots in heritage building

The Calamander Group

The Heritage Building Specialist

redevelopment go back 30 years under its founder. Calamander was a

Calamander House

pioneer in investing and restoring Singapore shophouses and created its

85 Circular Rd

signature redevelopment model of a modern, white, minimalist & highly

Singapore 049437

efficient interior design, while restoring and preserving the beautiful exterior

HQadmin@calamandergroup.com

and frontage of these buildings, and lighting them up. The Group carefully curated tenants over time to improve rental yield and the prestige of its buildings. The Group is a very long-term investor who rarely sells. The Group has its own design and redevelopment team and continues to acquire and redevelop heritage buildings in Singapore, the UK & Sri Lanka.


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