Former People’s Insurance Bldg Approved For Redevelopment
SINGAPORE – Following a report about the sale of a 5-storey commercial building in the Singapore River planning area for S$13.58 million, more details emerged about the off-market deal, according to a recent report from Mingtiandi.
For instance, the buyer is Singapore-listed builder SLB Development, while the seller is a subsidiary of local real estate player Hwa Hong Corporation. While the building is presently occupied by a unit of the seller, the commercial property was sold with vacant possession.
Notably, the low-rise office building along 38 and 40 South Bridge Road stands on two sites that measures 1,300 sq ft and 1,324 sq ft, and both land plots are already approved for redevelopment.
According to planning documents filed with the Urban Redevelopment Authority (URA), Hwa Hong Corporation’s subsidiary had obtained in April 2022 approval to redevelop the sites into a six-storey office block with F&B space on the first floor that can have a maximum gross floor area (GFA) of 11,020 sq ft. Based on the maximum GFA, the selling price works out to about S$1,232 psf.
“We are proud to have brokered the sale of 38 & 40 South Bridge Road,” wrote Savills Singapore’s Deputy Managing Director for the investment sales & capital markets division Galven Tan in a recent LinkedIn post.
“This off-market transaction is testament to Savills’ unparalleled outreach and understanding of investors requirements,” he added.
However, real estate consultancy Savills refused to comment further on the sale of the commercial property formerly known as the People’s Insurance Building.
