Pek Chuan Building at 116 Lavender Street changed hands in a collective sale for S$80.68 million, with buyer Aw and Sons Capital beating two other bids in a tender that closed on 7 October 2026.
Deal terms
Property portals reported the price at 4.8 percent above the S$77 million guide set when the owners relaunched the sale in September. The site spans 28,700 square feet with commercial zoning and a plot ratio of 2.5—enough gross floor area for a mid-rise redevelopment subject to Urban Redevelopment Authority approval.
Collective sales of ageing commercial shophouse blocks have been intermittent since financing costs rose, but well-located freehold or long-lease clusters still draw family offices and boutique developers willing to bet on office-retail mixes near MRT nodes.
Lavender Street context
Lavender sits between Bugis and Kallang, with the Downtown Line and East-West Line within walking distance for future tenants. The strip mixes conservation-minded tenants with light industrial leftovers; an en bloc replacement would likely target small offices, showrooms or serviced apartments rather than a mega mall.
Nearby food options—from hipster cafes in Jalan Besar to hawker centres—give developers a lifestyle story when marketing finished units, even if the immediate street remains gritty.
What owners voted for
En bloc procedures require a supermajority of owners to accept a reserve price and appoint a marketing agent. Relaunching at S$77 million after an earlier attempt signals owners were willing to trim expectations to clear the market without a fire sale.
Aw and Sons Capital's win adds to a string of family-backed purchases in the city fringe over the past two years. The firm has not published a concept plan; planners will watch whether the buyer seeks a hotel use or straight commercial floors.
Broader market read-through
The deal does not directly affect HDB resale statistics, but it reinforces that institutional capital still clears commercial sites when tender competition is thin. With September HDB resales registering 2,245 flats, private-side transactions like Pek Chuan provide a contrast in price per square foot and holding periods.
For neighbours, construction noise and hoarding are the near-term risks once demolition permits appear. For diners who relied on ground-floor tenants, lease endings could mean temporary closures long before a new tower opens.
Planning and timeline
Buyers must submit redevelopment proposals to URA and may need traffic impact studies given Lavender's bus lanes. Historical en bloc projects in the area took three to five years from sale to temporary occupation permit, depending on demolition seasons and contractor availability.
Tenants on short leases should photograph fixtures and confirm return-of-deposit clauses. Collective sales pay out on a share formula tied to strata area; owners debating whether to buy another commercial unit or rotate into REITs should model stamp duties before signing the sale and purchase agreement.