Commercial site in CBD relaunched for collective sale at $216 mil
The structures 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 land, the entire location has a total estimated acreage of around 18,540 sq ft. The plot is zoned for industrial utilization as well as has a gross plot ratio of 5.6.
The site, that comprises 2 rows of commercial establishments and also a portion of remnant land in between them, has a reserve rate of $216 million. The cost is unmodified from the past tender released on Jan 19 for the place. The tender had actually finalized on March 22 without any proposals.
A 999-year leasehold commercial site bounded by Hoe Chiang Roadway as well as Lim Teck Kim Roadway in the Downtown Core are going to be relaunched for collective sale through tender on May 17, according to an announcement by promotion broker PropNex Real estate.
The reserve price translates to an estimated land premium of $2,610 psf per plot ratio (ppr) for an office development, including a land betterment charge (LBC) of $55 million. The customer likewise has the choice to redevelop the location as a resort development, and that would certainly put the land rate at $2,671 psf ppr, inclusive of the quoted LBC of $61.3 million, claims PropNex.
Tracy Goh, PropNex’s head of investment and collective sales, emphasize the business zoning of the place implies that it is not subjected to additional buyer’s stamp duty (ABSD). In addition, the main office industry stands durable, with rental fees increasing 5.1% q-o-q in 1Q2023. Goh anticipates the healthy workplace industry and the ABSD increases announced as portion of the new round of cooling down actions to result in restored financial investment interest in the business estate section.
Goh includes that the site is not impacted by constraints restricting the strata subdivision of industrial real estate in the CBD, which will certainly use even more flexibility to the purchaser to redevelop the plot into a strata-titled office complex. “The constraints on strata subdivision is assumed to crimp the supply of strata-titled office units in the city center, and also it will certainly aid to uphold up the need for and costs of such office.”
Thus, she expects the site at Hoe Chiang Roadway and also Lim Teck Kim Roadway to attract interest from buyers, specifically offered its place and tenure. “Currently, there are nothing else 999-year tenure industrial locations available for sale in the CBD,” she adds. The site is inside strolling distance of Tanjong Pagar MRT Terminal (East-West Line) along with two upcoming terminals – Cantonment and Prince Edward Roadway stations on the Circle Line – which are slated to be ready in 2026.
The tender for the site is going to shut on May 31 at 2pm.
