Frasers Prop to sell former Zouk warehouses on Jiak Kim St

FRASERS property is believed to be in advanced discussions for a possible sale of its 72 serviced apartment property and three conserved storage warehouses along Singapore River.

A company linked to Tuan Sing Holdings has been identified as a potential buyer. The Business Times has learned that the company is doing due diligence exclusively for a possible purchase of slightly more than S$130 million.

The property consists of a four-storey building with serviced apartments called Fraser Residence River Promenade, and three warehouses or godowns that housed Zouk, a popular nightclub, for 25 years, until it was moved to Clarke Quay, in late 2016.

Tampines Ave 11 Condo is launching soon in Q4 2024. Secure your slot for the biggest and most exciting launch in 2024.

The serviced apartments, warehouses and other buildings are all part of the Riviere development. This is a high-end residential building with 455 units that was granted a Temporary Occupation Permit in January 2023. The project was sold out in April of that year.

BT has been informed that the 72 serviced apartments and three warehouses will be held in a single strata subdivision.

Frasers Property has developed the project in Jiak Kim Street on a 99 year leasehold site, which was won in an Urban Redevelopment Authority bid that ended in December 2017.

The winning bid of S$955.4m translated into S$1,732.55 per square foot and per plot ratio. This was just 0.6 percent higher than the second highest bid by Hong Leong Holdings & Hong Realty.

Ten bids were submitted. The lease on the site is still valid for 93 years.

Fraser Residence River Promenade was awarded its TOP in May of last year, and it opened in September.

Brewerkz leases one of the three warehouses to operate Jiak Kim House – a modern Asian restaurant. According to Frasers Property, the second warehouse is a flexible space that can be used for events and coworking. The third warehouse will serve as the reception and front-of-house for Fraser Residence River Promenade.

Market watchers say it’s difficult to estimate the value of warehouses because only a portion of them is currently earning income. The warehouses also have specific uses.

The Straits Times reported that in January, all 72 apartments had kitchenettes. The units ranged from 258 square feet for studios to 516 square feet for one-bedroom units.

A price of S$130,000,000 is equivalent to S$1.8million per key if you only consider the 72 serviced apartment. Some estimates put the net yield at about 3 percent.

Fraser Residence River Promenade, which is located near Havelock MRT Station on the Thomson-East Coast Line and faces the Singapore River, is a good value for money. It is possible to increase the number serviced apartments.

The sale is understood to have been brokered by Savills Singapore, which marketed the property through an expression-of-interest exercise that closed in late March.

Frasers Property signed a deal in the first quarter to sell a 313-room Capri by Fraser hotel, Changi City for approximately S$170m to a consortium consisting of Atelier Capital Partners TPG Angelo Gordon, and Far East Consortium International.

The hotel is part of an integrated development that was built on a site whose lease has about 45 years remaining. It’s a short walk from the Expo MRT Station and the Singapore Expo.

Book an Appointment

Kindly Fill up the form to Enjoy Direct Developer Price & EXCLUSIVE Showroom Viewing!

Please enable JavaScript in your browser to complete this form.
Agreement Terms
error: Content is protected !!