7-Eleven portfolio offered for sale in Singapore

A portfolio of 13 prime Housing and Development Board (HDB) shophouses and a 999-year retail shop at Peninsula Plaza is up for sale in Singapore, announced professional services and investment management firm JLL on behalf of Dairy Farm Singapore.

The portfolio features properties located in the following prime mature residential estates and locations: Cityhall, Ang Mo Kio, Bedok Reservoir, Changi Village, Clementi, Hougang, Jurong East, Jurong West, Tampines, Toa Payoh and Yishun.

Each of the HDB retail units are located in prime and strategic locations in mature residential hubs with highly prominent frontage and high shopper footfall, JLL said. Most of the units are in close proximity to road junctions, coffee shops, post offices and supermarkets. The portfolio also includes a prime ground floor 999-year leasehold strata retail unit at Peninsula Plaza (also referred as Singapore's Little Burma) which occupies a prominent main road frontage.

The portfolio will be offered for sale under three separate clusters:

Cluster 1 features assets that are offered for sale with a long-term sale & leaseback arrangement with 7-Eleven* in place, providing investors with the opportunity to acquire high yielding properties with a strong and established blue-chip tenant in place.

Cluster 2 features assets that are offered for sale with vacant possession, providing owner-occupiers the opportunity to occupy the units located in rarely available locations. Alternatively, investors can have the flexibility of leasing the units to their own preferred tenants.

Cluster 3 features an individual asset located at Bedok Reservoir Road. The unit is offered for sale with existing tenancy, providing the incoming investor with a stable income stream.

* The units will be leased to Cold Storage Singapore (1983), a subsidiary of Dairy Farm International which is the licensee holder of the 7-Eleven brand in Singapore.

Details and guide price of the properties are tabled below:

The assets can be sold either individually or collectively as a portfolio.

Clemence Lee, associate director, Capital Markets, JLL, said: “This is the first time whereby a series of prime 7-Eleven convenience stores situated in long-standing and proven mature residential hubs are being put into the market for sale. Such rarely-available properties are highly sought-after by investors due to its defensive and counter-cyclical nature. We expect strong interest from investors such as boutique real estate funds, local companies, family offices and high-net-worth individuals (HNWIs) who are looking to own a turnkey property with strong tenant covenant and a long-term tenancy in place.”

Being located in prime locations, the units which are to be sold with vacant possession will appeal to owner-occupiers looking to locate their businesses in strategic and mature residential hubs with high visibility and shopper footfall, he added.

The 7-Eleven Portfolio will be offered for sale via an open tender process that closes on 5 June 2018 at 3pm.