If the reported deal is approved, the sum would be among the greatest paid for a coffee store in a Housing Board property, together with the last high profile sale being in 2015 if a coffee store at Bukit Batok has been sold for a comparable quantity.
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He explained it was too early to start talking about any bargain on Coffee United, since the coffee store at Block 496 Jurong West Street 41 is famous, including that there are additional interested buyers when its owners were prepared to sell.
Mr Chu estimated that at least eight more months were required to finalise a bargain, even if it moved at all.
K2 works 14 coffee stores – some below the Fu Chan manufacturer – and over 40 food stalls islandwide, The Straits Times reported this past year. The company has approximately 400 employees and an yearly revenue of roughly $45 million.
There are approximately 1,200 coffee stores in Singapore.
The Shin Min report stated Coffee United has 13 stalls, also stallholders were quoted as stating that their leasing contracts could finish in July. They stated Coffee United’s owners could normally renew the contracts per week or two prior to their expiry.
The report also stated Coffee United is situated close to a neighborhood center, schools and other stores, which the coffee store has healthful footfall, especially at night.
When asked concerning the attraction of coffee stores as an investment, Associate Professor Lawrence Loh of the National University of Singapore Business School noticed those from the area remained a crucial quality of the food and drink industry here.
Coffee shops capture clients localised in compact housing estates, additional Prof Loh, who’s director of the Centre for Governance, Institutions and Organisations.
“The clientele are normally older people that are regular visitors of those coffee shops,” he explained.
“While there’s not anything particular about Jurong West particularly, there are still routine flows of patrons into the coffee shops due to cost and convenience factors.”