Tag Archives: Second Chance Properties

Deal a sign of recovery in investment sales

The net rental yield of the shop units purchased by Second Chance Properties works out to 6.46 per cent, an attractive figure compared with that of other property segments — . ST FILE PHOTO

A LISTED property company has snapped up 22 shop units in computer products mall Sim Lim Square for $35 million.

Second Chance Properties (SCP) said yesterday that it had bought the units, all on the fifth floor, from a single seller. They comprise a total of 9,604 sq ft of retail space.

Industry observers say the deal reflects the pace of investment sales, which has picked up recently on the back of a recovering economy and a booming property market. Continue reading →

LISTED retail and property group Second Chance Properties (SCP) said yesterday that it will buy 22 retail units at Sim Lim Square for $35 million.

The units – all on the fifth floor – have a combined floor area of 9,604 sq ft. ‘They are fully tenanted to 27 retailers and the gross rent per annum is $2.634 million with a return of 7.3 per cent,’ SCP said.

The units were valued by Jones Lang LaSalle, and with interest rates so low, they will be ‘profitable immediately (yield accretive)’, it said.

The purchase takes SCP’s portfolio to 76 retail units with a combined floor area of 49,532 sq ft of space, valued at a total of $145 million. Once the latest deal is completed, SCP’s rental income will be $10.2 million per year.

The purchase will funded by bank borrowings. It was approved by SCP’s board on Oct 21 and is subject to shareholder approval at an extraordinary general meeting in December. Continue reading →