Bukit Batok coffeshsop sold for $31 Million

[xebay11]

Blk 155 Bukit Batok street 11, sold at $31 Million, how to recoup the investment? Money laundering?

forums.condosingapore.com/showthread.php/24451-The-Verge-sold-for-S-317m-to-make-way-for-serviced-residences?p=513503#post51350303

 

[Brightkid]

It's for Long term investment. Whatever that means, just like Temasick.

Either above, or a bowl of fish ball noodles with micro-sized, lonely fishball is going to cost $5 to $10 a bowl not bigger than your appetiser serving.

 

[Lockheed]

Another one going to pah-bung (swat files). Good luck.

No one is going to succumb to high rentals and food prices. People will cook and eat at home or tah-pow from elsewhere.

 

[xebay11]

Another one going to pah-bung (swat files). Good luck.

No one is going to succumb to high rentals and food prices. People will cook and eat at home or tah-pow from elsewhere.

Bukit Batok estate is one of the poorer estates, people really poor there.

 

[xebay11]

It's for Long term investment. Whatever that means, just like Temasick.

Either above, or a bowl of fish ball noodles with micro-sized, lonely fishball is going to cost $5 to $10 a bowl not bigger than your appetiser serving.

Must collect $37,000 rent per month to break even for 70 years. Very risky, what if the place sers 30 years down the road?

 

[potter]

B.B is v close to Jurong East (interchange), not to forget the HSR.
New flats in BB area, CCK and international sch are coming along the way.

Singapore is like a theme park. :p

 

[shctaw]

Probably a left pocket out right pocket in transaction.

Dont underestimate the trickery of the rich.

 

[JohnTan]

Must collect $37,000 rent per month to break even for 70 years. Very risky, what if the place sers 30 years down the road?

The plan is to do coffeeshop business for about 10-20 years. After that, sell the coffeeshop to the next sucker for a higher price. I did that with some shop units years ago. Made myself a tidy profit and collected nice rental income for a few years. You should try it.

 

[bushtucker]

either the stall vendors jack up the price of their food or price remain the same but portions reduced significantly.

 

[JohnTan]

either the stall vendors jack up the price of their food or price remain the same but portions reduced significantly.

I would advise hawkers or my tenants against profiteering. Low caste people should content themselves to make an honest, noble living.

 

[Lockheed]

The plan is to do coffeeshop business for about 10-20 years. After that, sell the coffeeshop to the next sucker for a higher price. I did that with some shop units years ago. Made myself a tidy profit and collected nice rental income for a few years. You should try it.

That new owner will keep looking for a buyer for the next 10-20 years.

 

[Lockheed]

either the stall vendors jack up the price of their food or price remain the same but portions reduced significantly.

Either way hawkers will still pah-bung.

It's not just about affordability but savings. Assuming that a person or family spends an addition $2 a day by patronizing that kopitiam. Adds up to around $650 a year. With this savings they can buy birthday presents or a high end smartphone.

 

[xebay11]

That new owner will keep looking for a buyer for the next 10-20 years.

Good luck at this price. Commercial investment is all about returns, if the returns not there, forget it.

 

[Unrepented]

If it's laundering it doesn't work the way you stated using pay back periods. The rental will be way higher + sell to next buyer who also wash, total sum of rental + sell will be more sgd31million.

Notice in some coffee shops, a few stall are under one franchise? And the coffee shop bids keeps going up and up?

Game of mah-jong with higher and higher stakes to roll the incoming money.

I guess only:o

Must collect $37,000 rent per month to break even for 70 years. Very risky, what if the place sers 30 years down the road?

 

[Narong Wongwan]

Must collect $37,000 rent per month to break even for 70 years. Very risky, what if the place sers 30 years down the road?

That's too conservative estimate.
Already reported the rentals doubled to $6.5k per stall and some bigger stalls like Zhi Char usually pay more....they got 19 stalls. Minimum can collect over 100k and not forgetting they will man the beverage selling drinks which is the most profitable and also likely Chang Cheng Econ rice will be the anchor tenant.
If can't break even just increase rental and prices. Sinkie like to pay and pay without complaints

 

[red amoeba]

Chang cheng has other Brands under its umbrella - zup chai Peng, Zhi char, roast duck, western food - there is no issue if not affording the rental. They jus need to jack up the selling price.

 

[xebay11]

That's too conservative estimate.
Already reported the rentals doubled to $6.5k per stall and some bigger stalls like Zhi Char usually pay more....they got 19 stalls. Minimum can collect over 100k and not forgetting they will man the beverage selling drinks which is the most profitable and also likely Chang Cheng Econ rice will be the anchor tenant.
If can't break even just increase rental and prices. Sinkie like to pay and pay without complaints

OK I haven't gone to count the stalls there, will visit and count and do an estimation, looks like current owner also big player, probably cash out now for future 20 years rental and move up the property ladder.

 

[kezgtree]

That's too conservative estimate.
Already reported the rentals doubled to $6.5k per stall and some bigger stalls like Zhi Char usually pay more....they got 19 stalls. Minimum can collect over 100k and not forgetting they will man the beverage selling drinks which is the most profitable and also likely Chang Cheng Econ rice will be the anchor tenant.
If can't break even just increase rental and prices. Sinkie like to pay and pay without complaints

...2 Zhi char stall will probably collect min. 15k each...I guess
The rest of the stall average about 4-5k...I guess

 

[Narong Wongwan]

...2 Zhi char stall will probably collect min. 15k each...I guess
The rest of the stall average about 4-5k...I guess

The report said stalls rentals JUST doubled to $6.5k means previous average was $3.25k?
Wtf like this prices also double or you get half portions from now?

 

[Kuailan]

Chang cheng has other Brands under its umbrella - zup chai Peng, Zhi char, roast duck, western food - there is no issue if not affording the rental. They jus need to jack up the selling price.

The Phua family own 3 Semi detach houses Teacher's Estate, bought the land rent to AW opposite Thomson CC for $650 thousand way back 1987, sold for $46 million very good investment, he also own some petrol kioks along Mandai Rd Nee Soon Junction...just wonder if the oldman is still alive.