TWO adjoining conservation shophouses located at 56 Haji Lane and 87 Arab Street are up for sale via tender at a reserve price of S$8.5 million.

This translates to S$3,864 per square foot (psf) on a built-up area of around 2,200 square feet (sq ft), exclusive marketing agent PropNex Realty said on Wednesday.

The pair of two-and-a-half storey freehold shophouses has a land area of 1,078 sq ft and are fully tenanted to retail tenants.

PropNex said other suitable uses of the properties include takeaway food and beverage, serviced apartments and a students' hostel, subject to approval from authorities.

Haji Lane is a three-minute walk to Bugis MRT station on the East-West Line and Downtown Line. 

PropNex Realty associate director Loyalle Chin said the firm is seeing an increase in the number of private equity funds and global family offices deploying capital into commercial properties - including conservation shophouses - that can ride the Bugis-Beach Road upside.

This comes as interest rates fall and founders of multinational companies from the UK and China set up offices in Singapore, he added.

According to PropNex, other freehold shophouses in the vicinity were sold at higher prices. These include 26 Haji Lane at S$8.6 million or S$4,319 psf on built-up area and 53 Haji Lane at S$4.8 million or S$4,851 psf on built-up area.

The tender exercise for 56 Haji Lane-87 Arab Street will close at 3pm on Apr 7.