Commercial site in CBD relaunched for collective sale at $216 mil
The location, that consists of two rows of commercial buildings and a part of remnant land between them, has a reservation cost of $216 million. The rate is unmodified from the former tender launched on Jan 19 for the place. The tender had actually closed on March 22 without proposals.
The tender for the location is going to shut on May 31 at 2pm.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Road (even numbers only). Together with the remnant place, the overall location has a complete estimated land area of around 18,540 sq ft. The plot is zoned for business use as well as has a complete plot ratio of 5.6.
A 999-year leasehold business location bounded by Hoe Chiang Roadway and also Lim Teck Kim Road in the Downtown Core will be relaunched for shared sale by means of tender on May 17, according to a news release by marketing agent PropNex Real estate.
Goh adds in that the spot is not influenced by constraints limiting the strata subdivision of business property in the CBD, which will provide even more adaptability to the purchaser to redevelop the plot into a strata-titled office complex. “The constraints on strata subdivision is anticipated to crimp the supply of strata-titled office units in the urban area centre, and it will aid to uphold up the need for and prices of such office.”
The reserve rate equates to a projected land price of $2,610 psf per plot ratio (ppr) for a workplace development, consisting of a land betterment charge (LBC) of $55 million. The buyer likewise has the option to redevelop the location as a hotel project, and that would place the land rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, claims PropNex.
Therefore, she expects the area at Hoe Chiang Roadway and also Lim Teck Kim Road to draw attraction from purchasers, particularly offered its area and also term. “Presently, there are no other 999-year tenure industrial sites for sale in the CBD,” she adds. The site is throughout walking distance of Tanjong Pagar MRT Terminal (East-West Line) along with 2 upcoming terminals – Cantonment also Royal prince Edward Roadway stations on the Circle Line – that are slated to be all set in 2026.
Tracy Goh, PropNex’s head of investment and cumulative sales, emphasize the business zoning of the site indicates that it is not subjected to additional buyer’s stamp duty (ABSD). Furthermore, the prime office sector stands durable, with rents climbing 5.1% q-o-q in 1Q2023. Goh anticipates the healthy workplace industry and also the ABSD hikes publicized as part of the latest round of cooling procedures to lead to restored financial investment attention in the retail real estate section.