TWO adjoining shophouse units that house what was once one of the hippest joints in town, Madam Wong's Bar, will be put up for auction next Thursday.
The properties - at 28 and 29 Mohamed Sultan Road - are valued at $11.3 million.
They are being put up for sale by owner Cliffview Holdings, which counts Madam Wong's owner Peter Wong as one of its directors.
But that does not spell the end of Madam Wong's, said Mr Wong, who once owned a string of bars and clubs at Mohamed Sultan Road and at Central Mall.
'The name has been built up so we're not going to let it go,'' he said. 'If the new owners want us, we will change the concept. If not, we will go somewhere else.''
Madam Wong's Bar was opened in late 1998 when Mohamed Sultan Road was the hippest nightlife strip to be seen in.
After seven years, it is time for a major change as the Mohamed Sultan road scene has also changed, said Mr Wong. He is now left with just Madam Wong's.
New entrants to the nightlife scene, particularly Ministry of Sound which opened late last year at Clarke Quay, have also proved to be tough competition.
And there is still the soon-to-be launched mega nightspot St James Powerhouse.
At an indicative price of $11.3 million, the shophouses will offer a rental yield of about 6 per cent.
Consisting of two storeys and an attic, the shophouses have a combined site area of 9,679 sq ft and a gross floor area of 21,382 sq ft. They come with a 999-year lease starting from 1841 and are within the River Valley Conservation Area.
Mr Wong said they want to sell the shophouses now as property market conditions are favourable.
That is despite the future possibility of selling them en bloc together with five other Mohamed Sultan Road shophouses.
The idea has been proposed because the site is conducive for a residential development of up to 10 storeys. But the market could have changed by the time such a sale is arranged, said Mr Wong.
As the shophouses are zoned for commercial use on the first floor and residential use on the second, at a maximum gross plot ratio of 3.8, the new owner could opt for redevelopment.
An eight- to nine-storey extension could be built at the back of the shophouses, as long as the shophouse facades are kept, said auctioneer Shaun Poh, a director at property consultancy DTZ Debenham Tie Leung, which is conducting the auction.
The new owners can choose to run a boarding house or service apartment business. They can also opt to lease the properties back to Madam Wong's, he said.
Mr Wong said he is consolidating his business and will find a way to bring back Madam Wong's. 'We're going back to the basics, just to have one outlet.''
He said he wants to do something 'classy'' next and would want to remain at Mohamed Sultan Road, though that would depend on the rent.
joyceteo@sph.com.sg
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