Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold business location bounded by Hoe Chiang Roadway as well as Lim Teck Kim Roadway in the Downtown Core will be relaunched for collective sale using tender on May 17, according to an announcement by marketing representative PropNex Real estate.
The site, which makes up 2 rows of business establishments and a part of remnant land between them, has a reserve price of $216 million. The rate is the same from the previous tender kicked off on Jan 19 for the site. The tender had finalized on March 22 without any offers.
Goh adds that the spot is not impacted by limitations limiting the strata community of industrial real estate in the CBD, and that will certainly supply more flexibility to the purchaser to redevelop the plot right into a strata-titled office complex. “The constraints on strata neighborhood is expected to crimp the supply of strata-titled workplace units in the city center, and also it will certainly assist to set up the need for and prices of such workplace.”
Tracy Goh, PropNex’s head of investment and also collective sales, emphasize the industrial zoning of the site means that it is exempt to additional buyer’s stamp duty (ABSD). Furthermore, the prime office market stands resistant, with leas rising 5.1% q-o-q in 1Q2023. Goh expects the healthier workplace industry and the ABSD increases declared as portion of the latest round of cooling steps to create renewed investment attention in the retail real estate section.
The buildings are at 1 to 9 Hoe Chiang Road (odd numbers only) and 2 to 10 Lim Teck Kim Roadway (even numbers only). Along with the portion area, the entire location has a total approximated land area of around 18,540 sq ft. The plot is zoned for industrial use as well as has a total plot ratio of 5.6.
The tender for the location will close on May 31 at 2pm.
The reserve cost equates to an approximated land rate of $2,610 psf per plot ratio (ppr) for a workplace enhancement, consisting of a land betterment charge (LBC) of $55 million. The buyer likewise has the alternative to redevelop the site as a hotel development, and that would put the area rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, claims PropNex.
Because of this, she anticipates the location at Hoe Chiang Roadway and also Lim Teck Kim Road to pull attention from customers, especially given its place and also tenure. “Currently, there are no other 999-year term business sites for sale in the CBD,” she adds. The website is within strolling distance of Tanjong Pagar MRT Station (East-West Line) along with 2 upcoming stations – Cantonment and Prince Edward Roadway stations on the Circle Line – that are slated to be prepared in 2026.