Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold business spot bounded by Hoe Chiang Roadway and also Lim Teck Kim Roadway in the Downtown Core will be relaunched for shared sale by means of tender on May 17, according to a press release by promotion agent PropNex Real estate.
The buildings 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 place, the entire site has a total estimated land area of around 18,540 sq ft. The plot is zoned for industrial use as well as has a total plot ratio of 5.6.
The tender for the spot is going to close on May 31 at 2pm.
Goh includes that the spot is not influenced by limitations restricting the strata neighborhood of industrial estate in the CBD, and that will certainly supply more flexibility to the customer to redevelop the plot into a strata-titled office building. “The restrictions on strata class is anticipated to crimp the supply of strata-titled office units in the city centre, as well as it will help to prop up the need for and rates of such workplace.”
Tracy Goh, PropNex’s head of investment and also cumulative sales, emphasize the industrial zoning of the site suggests that it is exempt to additional buyer’s stamp duty (ABSD). In addition, the prime workplace sector continues to be durable, with rental fees rising 5.1% q-o-q in 1Q2023. Goh expects the healthy workplace industry as well as the ABSD hikes publicized as section of the recent round of cooling down measures to result in restored investment attention in the commercial real estate sector.
The reserve rate converts to an estimated land price of $2,610 psf per plot ratio (ppr) for a workplace development, consisting of a land betterment charge (LBC) of $55 million. The customer additionally has the choice to redevelop the site as a resort development, and that would certainly place the real estate rate at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, says PropNex.
As such, she prepares for the site at Hoe Chiang Roadway and Lim Teck Kim Road to pull attention from customers, especially given its place and term. “Currently, there are no other 999-year tenure business spots available for sale in the CBD,” she includes. The website is inside walking range of Tanjong Pagar MRT Station (East-West Line) along with two upcoming stations – Cantonment and Royal prince Edward Road stations on the Circle Line – which are register to be all set in 2026.
The site, which makes up 2 rows of commercial buildings and a piece of remnant land between them, has a reservation rate of $216 million. The cost is the same from the former tender released on Jan 19 for the spot. The tender had already sealed on March 22 with no proposals.
