Serangoon coffee shop set to change hands for S$13.2M to Kimly Group

SINGAPORE: In another significant million-dollar coffee shop transaction, Choh Dee (S204) Food House, a coffee shop fully owned by Kimly Limited, a coffee shop operator, has exercised its option to purchase a coffee shop property in Serangoon.

The two-storey HDB shophouse unit, located near the NEX shopping centre, was previously owned by Lee Quan Enterprises Private Limited.

In a statement released on Monday (10 June), Kimly announced its plan to acquire the property for S$13.15 million (approximately US$9.72 million) in cash.

Situated at Block 204 Serangoon Central, the property comprises a coffee shop on the first level and a three-room HDB flat on the second.

It offers a strata floor area of 358 square metres and has 60 years remaining on its lease.

The property’s book value stands at S$14.04 million, which includes S$0.89 million in stamp duty.

Kimly also disclosed that the property’s market value is S$13.7 million, as per a valuation report commissioned by the company.

However, the acquisition is contingent upon the property being sold with a condition of tenancy ending on 31 August 2025.

Additionally, it requires written approval from HDB and relevant authorities.

The completion of the acquisition is anticipated around 10 December 2024 or four weeks after HDB grants unconditional approval, whichever comes later.

“The group expects to strengthen its presence in the market by opening more food stalls under its food retail division, which is complemented by its central kitchen,” the statement read.

It further expressed intentions to pursue opportunities to acquire and/or operate strategically located coffee shops in mature estates with established foot traffic.

The consideration for the acquisition will be financed through cash and the company’s internal resources.

In May, an HDB coffee shop at Block 110 Yishun Ring Road for sale, with a guide price set at S$11 million (approximately US$8 million).

The recent sale follows a trend of multi-million dollar coffee shop transactions in recent years.

Over the past two years, at least three other coffee shops have changed hands for sums exceeding S$40 million (US$29.5 million), located in Serangoon, Yishun, and Tampines.