Hawkers say rent was doubled after Tampines coffeeshop sold for $41.6 mil; can they survive?

A coffee shop in Tampines was sold for a record S$41.68 million last month. Some tenants say that since then, rent was just about doubled.

We spoke to two hawkers there to find out if their businesses can survive.

One hawker, who did not give her name, said that her stall had been in that coffee shop for the past 23 years. She added that she was “shocked” when informed by the previous owners that the coffee shop was sold. When she called the new owners to ask about the rent, she said that she was told it was double – from around S$6,000 to about S$12,000.

She told TISG that her son had signed a contract with the new owners for six months and that she would see it through. “Maybe after six months, we see how”, she said, adding that she would like to stay if she could.

“I try my best”, the hawker said, adding that she preferred to continue her business in that coffee shop as she lived nearby.

Another hawker

Another hawker TISG spoke to said that they had only been running their stall there for three to four years. “When we first started renting here, it was alright. Recently, the rent was on a consistent rise which is starting to affect us”, she said.

However, when probed further as to the exact increase in rent, she added that she was only a staff member and thus was unsure of the exact amount, just that she knew it was an increase.

“We’ll have to see if we can continue renting here. If we can manage the business even with the rise in rent. Only my boss will know”, she said.

A firm called G&G (21) lodged a caveat with the Singapore Land Authority in April for the coffee shop, 21 Street Eating House, in Block 201 Tampines Street 21.

The deal topped the previously reported record of $31 million for a coffee shop in Block 155 Bukit Batok Street 11 in 2015. Based on Accounting and Corporate Regulatory Authority (ACRA) records, G&G’s director, Mr Kiong Tai Weng, owns several other businesses including the 7 Stars coffee shop chain and U Stars supermarkets. The 604 sq m Tampines coffee shop, which has 18 stalls, has 76 years left on its lease, according to a property title information search. /TISG