Recently a new record for the price of a HDB coffee shop was set when Broadway Group bought one in Hougang Avenue 4 for $23 million.
The coffee shop involved is just over 4000 sq ft in size with 17 stalls inside. The sale is supposed to be finalized by September this year.
Unsurprisingly, the high price paid for the coffee shop has made stall holders nervous as they fear an imminent rental increase. Preliminary estimates suggest that Broadway Group is aiming for a 5% return on the investment which is expected to translate to around $6000 per month in rent for each stall.
As stall holders worry about rising rental prices, consumers are also worried about rising food prices as a result of the stall holders passing costs down to consumers.
If this were to occur, the everyday consumers would be the ones to suffer the most.
One suggestion made by Mr Tang Swee Seng in a letter written to ST today was that "HDB spaces should be sold back to the Housing Board, which can act as the clearing authority, especially when subsidies were provided in the original sales. Otherwise, we would all be the poorer in time to come.”
Due to some of the concerns regarding the possible increase in food prices and the extra pressure this may cause some of the lower-income locals in the area, netizens have dug around to work out: who exactly is Broadway Group?
They had declined interviews with reporters when information about the sale was first made public.
The Broadway Group website reveals that it is a Singapore incorporated company which was started in 1997. It specializes in food stall operation and management. It's website lists the following companies as part of it's group:
- Broadway Food Centre (Holdings) Pte Ltd. - Locations in Potong Pasir, Hougang, Ang Mo Kio, Choa Chu Kang, Yishun, Sembawang, Marsiling and Woodlands.
- Broadway F&B Management Pte Ltd
- GM Food Centre Pte Ltd
- Broadway Live Seafood House
- Tong Luck Economical Rice
- Old Punggol Nasi Lemak
- New Hongkong Roast
- Hougang Mince Pork Noodles Pte Ltd
- CK Central Kitchen
Further digging on the ACRA website shows that Broadway Food Centre (Holdings) actually belongs to Broadway Textile Pte Ltd. These companies share the same address and appear to be started by 2 brothers: Tan Thoo Cheng and Tan Thoo Mong.
A Google background check on these two also reveals that Tan Thoo Cheng is involved in grassroots activities and has been awarded a PBM.