Following news of a buyer paying a record S$41,682,168 for a coffeeshop at Block 201 Tampines Street 21, it was revealed that the same company also snatched a nearby kopitiam for S$16.8 million.
The takeover resulted in all but one of the 11 stalls in the venue moving out.
8World reported earlier that the property was being purchased by G&G (21) Pte Ltd. Its company director, Kiong Tai Weng, also owns coffeeshop chain 7 Stars and supermarket chain U Stars.
He also purchased the popular Hong Kong Street Zhen Zi food court in Block 151 Ang Mo Kio Avenue 5 in 2014 for S$7.4 million.
The latest property purchase is located in Block 201D Tampines Street 21, with the deal closing in May this year, although negotiations began in November last year.
Inside the coffeeshop is Indian-Muslim family restaurant Saffrons, which has been in operation for the last eight years.
However, all the stalls operated by Saffrons will be leaving due to the takeover, leaving only one chicken rice stall.
Saffrons’ chief marketing officer told 8World that they decided not to renew their lease after hearing of the takeover.
They will remain in the venue until July 27, 2022, before the new owner officially takes over on August 1.
As for the chicken rice stall that planned to stay, the owner revealed his rental increased by S$3,000 after the change in ownership.
The owner thought this was reasonable as he was concerned about his workers. “If I close shop, what are they going to do?” he asked.
Still, he expressed being worried about further rental hikes after hearing that the nearby kopitiam’s rentals had doubled.
A hawker at the Block 201 coffeeshop revealed that in the 23 years of operations there, the previous landlord didn’t raise rentals significantly. However, the new owner announced that her rent would increase from S$6,000 to S$10,000, excluding other charges and miscellaneous fees.
Another hawker also confirmed that many stalls decided to close down due to the rental hike.
Commenting on the latest takeover, members from the online community noted that Tampines residents would end up paying more for their food at the kopitiams.
“Someone planning to corner the coffeeshop business around the estate, is it? Making it harder for residents around to complain of price since little or no choice,” said a netizen Gabe Seah.
“Time for the government to control such transactions from happening!” added Facebook user Alex Ng./TISG
Tampines coffeeshop sold for record S$41.6 million, hawkers leaving as rent rises to S$10k a month