Frasers to sell service apt & Zouk Warehouses in Jiak Kim St

FRASERS, a Singapore-based property developer, is reportedly in advanced negotiation for a possible sales of its 72 unit serviced-apartment complex and three conserved warehouses located along the Singapore River.

Tuan Sing Holdings’ affiliate is said to be the likely buyer. The Business Times knows that it is the exclusive due-diligence company for a purchase worth slightly more than S$130 millions.

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The asset includes the four-storey serviced apartment block named Fraser Residence River Promenade as well as the three warehouses known collectively as godowns. Zouk was located in these warehouses for more than 25 years and moved to Clarke Quay late 2016.

The serviced warehouses and apartments are part a development which also includes Riviere a high-end residence project of 455 units, that received a Temporary Occupation Permit for (TOP) on January 2023. It was sold out by April.

BT understands that the 72 serviced homes and three stores are grouped together in a strata development.

Frasers Property completed the project at a Jiak Kim Street site that was leased for 99 years. It won this land in a tender conducted by the Urban Redevelopment Authority in December 2017.

Its winning S$955.4-million bid translated into S$1,732.55 per square foot, per plot ratio. Just 0.6 percent above the second most expensive bid from Hong Leong Holdings/Hong Realty.

The total number of bids was 10. About 93-years of the lease are left.

Fraser Residence River Promenade has received the TOP since May, last year. It opened its door in September.

Brewerkz is leasing one of these three warehouses. They operate Jiak Kim House which is a contemporary Asian cuisine restaurant. The second warehouse can be used as a space for hosting events or co-working. Frasers Property says the third warehouse is the reception area and front of house for Fraser Residence River Promenade.

Some market analysts said that it’s hard to assess the value of these warehouses since only a small portion of their space generates income. They also noted that the warehouses are used for specific purposes.

The Straits Times, in January 2013, reported that all 72 units had kitchenettes. The studio units ranged between 258 sq ft and the one-bedroom unit was 516 sq.

On just the 72 apartments with serviced, a price tag of S$130m works out at S$1.8m for each key. And according to some estimates the net yield of this project is around 3%.

Fraser Residence River Promenade’s pricing is similar to the freehold hotel prices in Singapore. However, the location is very attractive. It faces the Singapore River while being close to the Havelock MRT station along the Thomson-East Coast Line.

There’s also the potential to expand the number of 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 sold the 313-room Capri Hotel by Fraser, Changi City in the 1st quarter of 2018 for S$170 million. The consortium was made up of Atelier Captial Partners, TPG Angelo Gordon & Far East Consortium International.

The hotel is just a stone’s throw away from Expo MRT station as it was part of an integration project developed on land with a remaining lease of about 45-years.

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