Raffles Education Square building on sale of $200 mil
The residential property is located at 51 Merchant Road in District 1 in Clarke Quay. The overall facility sits on a 27,669 sq ft plot with a gross floor space of 71,111 sq ft and 2 cellar carpark levels. Knight Frank says the property has a leasehold period for an unexpired term of 69 years from May 15, 1993.
The initial construct was built in 1996 and restored in 2013 to house the business offices along with college university of Raffles Education. The facility has actually been abandoned since the school and workplace were vacated, paving the way for the divestiture of the property, adds Knight Frank.
She includes: “This is an uncommon chance to obtain an industrial property that is set to benefit from the significant urban renewal method that will transform the area into a brand-new and dynamic lifestyle hub”.
According to Knight Frank, Raffles Education Square can possibly be redeveloped with the neighbouring The Riverside Piazza, a mixed-use strata commercial and also property development at 11 Keng Cheow Street. The company states that the owners of Riverside Piazza are obtaining the essential 80% approval to launch a collective sale.
” The real estate is strategically located in an area with fantastic potential for an uplift in investment value from the resurgence of the Singapore River precinct,” claims Chia Mein Mein, head of funding markets (land and cumulative sale), Knight Frank Singapore.
Raffles Education Square, a four-storey commercial building affixed to two rows of preserved buildings, has already been sold at an overview price of $200 million. The land cost equates to about $2,660 psf per plot at a potential gross plot ratio of 2.8, consisting of the land betterment fee. Knight Frank is the advertising broker.
” Quality commercial investments are tough to come by as lots of are firmly supported by institutional users and nonexistent for sale. Private assets likewise seeks commercial assets as this property class is uninfluenced by the latest demand of government air-cooling procedures.”
The tender for the sale of Raffles Education Square is going to close on Aug 1.
” This possibility might allow the mixed site to enjoy an uplift in gross floor area to capitalise on the restoration campaigns for the location under the Urban Redevelopment Authority’s (URA) Strategic Development Incentive (SDI) system, subject to the authorities’ approval,” claims Chia.