Second Chance Properties of Singapore acquired 22 prime units at Sim Lim Square worth S$35 million. The retail space unit was valued by Jones Lang LaSalle, a professional and financial service firm specialising in investment management and real estate services.
The said units cover 9,604 sq. ft. and are located at the fifth floor of the Sim Lim Square in Rochor Canal Road. It is now fully occupied by 27 retailers, with a gross rental per-annum of S$2.634 million and a 7.3 percent return, said Second Chance Properties.
The acquisition of the units immediately gained profit due to the present low interest rate condition. Second Chance Properties added that it would receive a total of S$10.234 million rental income per annum after completion of the purchase.
The acquisition deal was approved by SCP’s Board of Directors but is still subject to the approval of its shareholders. The shareholders will have a general meeting in December to discuss the issue.
With the acquisition deal, Second Chance Properties would have a total property portfolio of 76 retail units, with a total area of 49,532 sq. ft. It is currently worth S$145 million.