Ground-floor shops and adjoining office units at International Plaza on sale for $19.84 mil

Knight Frank is marketing the sale of two ground-floor retail shops and six adjoining office units at International Plaza. An owner’s sale, the two retail shops have a collective guide price of $7.05 million, while the guide price of the office units is $12.79 million.

The largest retail shop is 581 sq ft with a guide price of $4.6 million ($7,917 psf). The unit will be sold with an existing tenancy expiring in August. The second retail shop is 248 sq ft with a guide price of $2.45 million ($9,879 psf) and is leased until July 2027.

The six adjoining office units are on the 29th floor and have a combined area of 6,555 sq ft. The units have a guide price of $12.79 million ($1,951 psf) and are leased until September 2029.

International Plaza is a 50-storey mixed-use development on Anson Road in Tanjong Pagar. The building comprises an eight-storey podium with shops on the first three floors and a five-storey car park. Above this is a 43-storey tower block with offices on the ninth to 35th floors and residential apartments from the 37th to 50th floor.

According to URA caveats, there have been four office transactions at International Plaza this year. A 2,357 sq ft office unit on the 20th floor was sold for $4.24 million ($1,800 psf) on Jan 10. It was followed by the sale of three units, spanning 4,230 sq ft on the 34th floor, that changed hands for $7.78 million ($1,840 psf) on Jan 20.

Subsequently, a 474 sq ft unit on the 20th floor transacted for $937,777 ($1,980 psf) when it was sold on Jan 24, while a 936 sq ft unit on the 26th floor changed hands for $1.68 million ($1,800 psf) when it was sold on March 28.

Caveats also indicate that a 75 sq ft shop unit on the second floor was sold for $240,900 ($3,212 psf) last January. This was after a 398 sq ft retail unit on the second floor fetched $1.1 million ($2,762 psf) when it was sold in October 2023.

A compilation of office rental transactions by EdgeProp Singapore indicates that most units are typically leased from $3.40 psf per month (pm) to $6.60 psf pm. This works out to an average rent of $5.00 psf pm and an implied rental yield of 3.3%.

At the same time, shop units are typically leased for approximately $8.4 psf pm, with most landlords raking in an estimated rental yield of 3.1%, according to transaction data.

The two ground-floor shops and six adjoining office units at International Plaza will be offered at Knight Frank’s next auction on June 26.