999-year Leasehold Commercial Site To Be Sold Via En Bloc Sale For S$216mil
SINGAPORE – A 999-year leasehold commercial site in Tanjong Pagar, on which stands two 5-storey commercial blocks, is poised to be put up for en bloc sale on Thursday (19 January) with a reserve price of S$216 million, reported The Business Times on Wednesday noon (18 January, SGT).
Exclusive marketing agent PropNex revealed that if the land plot would be redeveloped into an office project, the reserve price will translate to a land rate of S$2,602 psf per plot ratio, inclusive of a land betterment charge (LBC) of around S$54.1 million.
The new owner also has the option to redevelop the commercial site into a hotel project. In this case, the reserve price will work out to S$2,662 psf per plot ratio, inclusive of an LBC of about S$60.4 million.
Completed in 1959, the pair of commercial buildings are located at 1, 3, 5, 7 and 9 Hoe Chiang Road as well as 2, 4, 6, 8 and 10 Lim Teck Kim Road. Their rear faces each other, with a strip of remnant land lying between them.
The land plot along Hoe Chiang Road measures 8,449 sq ft, while the site at Lim Teck Kim Road spans 8,450 sq ft. Combining the sites of the two blocks and the remnant land will increase the overall land area to around 18,540 sq ft. This will create a rectangular-shaped land plot that would be suitable for a Grade A office project or a hotel development, noted PropNex.
Under the 2019 Master Plan, the commercial site has a gross plot ratio of 5.6. The buyer can redevelop the land plot into a 35-storey building to realise potential gains from its plot ratio, disclosed PropNex’s Head of investment & en bloc sales, Tracy Goh.
Previously, it was reported last September that the collective sale committee attained the mandated approval from at least 80 percent of the unit owners. PropNex then announced that the sites will be launched jointly for collective sale after an exercise to confirm their gross floor area (GFA) is completed.
Moreover, the land plot is near one existing and two future rail stations. Respectively, these are Tanjong Pagar, Cantonment, and Prince Edward Road. The last two are expected to be operational by 2026.
“In view of the site’s strong location attributes and redevelopment potential, we expect keen buying interest for this collective sale plot,” Goh added.
The tender shall close at 2pm on 22 March 2023, and the transaction is not subject to additional buyer’s stamp duty (ABSD).