Dairy Farm sells 14 7-Eleven stores

The portfolio is composed of 13 prime HDB shophouses and a retail shop.

Dairy Farm Singapore put up its 7-Eleven portfolio composed of 13 prime HDB shophouses and a 999-year leasehold retail shop for sale, its marketing agent JLL said.

According to an announcement, the properties are 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.

JLL noted that each HDB retail unit is in prime and strategic locations in mature residential hubs. 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 which occupies a prominent main road frontage.

The portfolio will be offered for sale under three separate clusters. The assets can be sold either individually or collectively as a portfolio.

Cluster 1 features assets that are offered for sale with a long-term sale and leaseback arrangement with 7-Eleven in place. The units will be leased to Cold Storage Singapore (1983) Pte Ltd, a subsidiary of Dairy Farm. This will "provide investors with the opportunity to acquire high yielding properties with a strong and established blue-chip tenant in place," JLL said.

Cluster 2 features assets that are offered for sale with vacant possession, providing owner-occupiers with the opportunity to occupy the units. JLL noted that alternatively, investors can have the flexibility of leasing the units to their own preferred tenants.

Meanwhile, Cluster 3 features an individual asset located at Bedok Reservoir Road. The unit is offered for sale with the existing tenancy.

JLL capital markets associate director Clemence Lee commented, "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 3 p.m.