Mar 22, 2012

Singapore - Investors hungry for roast meat recipe


A day after Kay Lee Roast Meat Joint put its recipe and premises up for sale for $3.5 million, it has been deluged with inquiries.

It has received bids of up to $2.8 and $2.5 million from a field of more than 40 parties who have expressed interest. 39 of these are from Singapore.

Senior property consultant Raymond Lo of Knight Frank, who is acting as the real estate broker for Kay Lee, told The Straits Times that most of the inquiries were received from businessmen or restaurant operators, perhaps as a form of investment.

Mr Lo is confident the sale will be completed within this year. He said the future owner will have a sure moneymaker in their hands, saying: 'As long as you take over, you make money.'

For that price, what will the owner get?

Madam Betty Kong, 66, and her husband Ha Wai Kay, 62, who want to make sure that the recipe for their Guangzhou-style signature pork ribs, char siew and duck will stay the same despite the change of ownership, will train the buyers until they have perfected the recipe. This process is expected to take about two to three months.

Madam Kong says the recipe, which they valued at $2 million, is not just a piece of paper.

The future owner will also take over the brand name of the shop, which makes about $2,000 a day.

The remaining component of the $3.5 million value is the 1,313 sq ft freehold shop space in Upper Paya Lebar Road.

The Straits Times reported that the owners want to sell the business as neither of their children want to run it.

The business had begun in Chinatown in the 1950s before moving to a coffeeshop in the 1970s.  It later operated from a whole unit in Paya Lebar as the business grew.

Opinions of other hawkers the paper spoke to vary. While Mr Chia Kar Wing, owner of Union Farm Eating House which closed last month, said if he sells his recipe, he would consider selling it for $2 million as well; Mr Richard Ng, who is co-owner of China Street Fritters at Maxwell Food Centre, said the price is too expensive. Madam P. Hoon, who helps her mother run the famous Maxwell Fuzhou Oyster Cake stall at Maxwell Food Centre, said that roast meat is not rare enough and can be found anywhere in Singapore.

Another hawker, meanwhile, said his recipe is worth more than $2 million. Mr Lim Swee Seng, who runs Toa Payoh Rojak at Old Airport Road Food Centre told The Straits Times that his recipe is priceless, and will be a family heirloom to be passed on to his children.

AsiaOne



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