Verdun House launched For En Bloc Sale For S$55mil
SINGAPORE – Verdun House, a mixed-use project at the intersection of Sam Leong Road and Verdun Road in Farrer Park has been put up for collective sale, reported The Edge on Thursday afternoon (16 August, SGT).
Its reserve price of $55 million translates to S$1,790 psf per plot ratio based on its potential gross floor area (GFA) of 30,727 sq ft. The buyer doesn’t need to pay any development charge to redevelop the site. Previously, the unit owners attempted an en bloc sale in 2018. Back then, the reserve price was S$60 million.
The launch of the tender for the en bloc sale comes after owners representing 15 out of the 16 strata-titled units in the commercial property have signed the collective sale agreement.
Completed in the 1980s, the 4-storey building contains 4 shops and eateries on the ground level and 12 residential units on the upper floors. The development stands on a 7,300 sq ft freehold land plot. The site has a plot ratio of 4.2 and is zoned for commercial use.
As such, the project can be potentially redeveloped into a 6-level building with a GFA of nearly 31,000 sq ft that contains retail and office space.
Thanks to its prominent corner frontage and being just 370 metres from Farrer Park MRT Station, the property is “well-suited for a commercial school or a corporate office with showrooms or F&B on the ground level”, said Karamjit Singh, Chief Executive of property consultancy Delasa, which has been appointed as marketing agent of Verdun House.
“With the commercial zoning, foreigners and public-listed entities could acquire the entire building for long-term hold even though the building comprises 12 apartments,” Singh explained.
Hence, the property could be attractive for long-term investors, who may want to keep the existing building and defer redevelopment plans. However, the current rental return of Verdun House is just 2 percent per year.
“From a locational perspective, Verdun House is set to benefit from the expanding commercial and medical tourism footprint around Farrer Park, and possibly spill-over business arising from its proximity to Health City Novena,” Singh added.
Key landmarks in the city-fringe area include the Mustafa Centre, the 450,000 sq ft City Square Mall, Farrer Square with its medical suites, Park Hotel and Parkroyal on Kitchener, as well as Connexion, a high-rise healthcare & luxury hospitality project.
The tender exercise for Verdun House will close on 27 September at 2:30pm.