DBS is selling 46 HDB retail and strata units as well as private strata units. The total price guide for the portfolio is approximately S$210m.
The units were formerly full-service banks and had a total area of approximately 69.500 square feet. Each of the 46 units can be purchased individually. The sales began a few months ago, according to reports.
The properties, which are located in Housing and Development Board Estates, include those in Bishan, Hougang Tanjong Pagar Jurong West Clementi Marine Parade Central and Bukit Batok. The 10 strata retail private units are located in Thomson Plaza and Gleneagles Medical Centre. The Centrepoint on Orchard Road, as well as at 6 Raffles Quay, formerly known by the name John Hancock Tower, is also home to these properties.
DBS’ spokesperson stated that the sale of 46 units in 29 locations is taking place because the properties are not strategic and property management isn’t core to their business.
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These units were acquired by DBS following the acquisition of POSB, in 1998. This resulted in duplication of branches within a short distance. They are a part of our broader portfolio.
The bank uses 16 of the 29 locations for ATMs and self-service branches that are available 24/7 (without counter service). Just over 10% of the space for sale is taken up by the 16 locations that are used by the bank.
A spokesperson stated that the branch and ATM footprints will not change as we will be leasing back the entire space we occupy. They will continue to service their customers in this area.
The bank has also occupied the following units for its 24/7 self-service branch: 1 Tanjong Pagar Plaza; Block 107 Toapayoh Lorong 1; Block 153 Bukit batok Street 11; Block 960 Jurong West Street 92. Block 43 Holland Drive. Block 201A Tampines Street 21. Block 260 Bangkit Road. Block 301 Ubi Avenue 1. Block 629 Ang Mo Kio Avenue 4. Block 254 Serangoon Central Drive.
Nearly 90% of the remaining space DBS is selling has either been leased out, with some tenants having occupied the premises for 10-20 years, or it is vacant.
The market has heard that HDB properties within the 46-unit portfolio have balance tenures of between 44 years for a shophouse at Block 107 Toa Payoh Lorong 1 to 68 (for two shops at Block 501 Jurong West Street 51).
The Gleneagles Medical Centre is a freehold building, as are 6 Raffles Quay. Thomson Plaza occupies a site that has a balance leasehold tenure of around 51 years. The Centrepoint strata unit has a balance leasehold tenure of around 54 years.
DBS has reportedly appointed CBRE Cushman & Wakefield JLL Knight Frank Triple One Properties and Cushman & Wakefield to market these units.
The highest unit, with a guide price of S$19.4m, is the 5,145 sq ft area at 6 Raffles Quay. The guide price for two units at the second floor of Gleneagles Medical Centre on Napier Road is S$9.5 million (for a unit of 700 sq ft) and S$8.5million for a unit of 592 sq. ft.
The highest HDB guide price is S$10.4m for a 5,554sq ft flat at Block 210, New Upper Changi Road. The property has a balance term of 54 years and is located near the Sky Eden@Bedok development, just a few steps from Bedok MRT Station.
The shophouse unit in Block 107, Toa Payoh, Lorong 1 with an estimated lease tenure of 44-years, is priced at slightly more than S$2.2million. Thomson Plaza has two units of 366 sq ft in size, with guide prices close to S$2m each.
DBS had approximately 170 branches after the 1998 acquisition of POSB. The number of branches has dropped to 70, which has remained relatively constant over the last few years.
These 70 branches include full-service branches with counter services, financial planning branches, and 24/7 self-service branch. Many of these branches are manned by Digital Ambassadors.
The group also has about 1,900 ATMs and POSB cash-points at merchant outlets, including Giant Cold Storage, and 7-Eleven, compared to just 950 in 1998.
In the last 25 years the branch network has been streamlined because of the proliferation of branches close to each other and the decline in foot traffic to the branch. More customers are now banking online or after branch hours.
DBS has invested in digital banking to meet this demand and have increased the number of physical touchpoints, including self-service machines and cash points at select merchants. Self-service machines are available in all 70 branches to allow customers to perform five of the most common over-the counter transactions, including passbook replacement, depositing cash and issuing debit/ATM cards, outside of normal branch hours.
