Commercial site in CBD relaunched for collective sale at $216 mil
A 999-year leasehold business site bounded by Hoe Chiang Roadway and also Lim Teck Kim Roadway in the Business district Core are going to be relaunched for shared sale through tender on May 17, according to a press release by promotion broker PropNex Real estate.
The reservation price converts to a projected land price of $2,610 psf per plot ratio (ppr) for an office development, including a land betterment charge (LBC) of $55 million. The buyer additionally has the option to redevelop the location as a hotel innovation, and that would put the area price at $2,671 psf ppr, inclusive of the estimated LBC of $61.3 million, states PropNex.
Thus, she prepares for the area at Hoe Chiang Road and also Lim Teck Kim Roadway to pull attraction from customers, specifically given its place and term. “Presently, there are nothing else 999-year tenure industrial sites available for sale in the CBD,” she includes. The site is inside walking distance of Tanjong Pagar MRT Terminal (East-West Line) as well as 2 upcoming stations – Cantonment including Royal prince Edward Roadway stations on the Circle Line – that are slated to be all set in 2026.
The establishments are at 1 to 9 Hoe Chiang Road (odd numbers only) as well as 2 to 10 Lim Teck Kim Roadway (even numbers only). Alongside the remnant place, the overall site has a total approximated acreage of around 18,540 sq ft. The plot is zoned for industrial usage and also has a gross plot ratio of 5.6.
The tender for the spot will close on May 31 at 2pm.
Goh adds that the spot is not influenced by constraints restricting the strata community of industrial real estate in the CBD, and that will supply more versatility to the buyer to redevelop the plot into a strata-titled office complex. “The constraints on strata community is assumed to scrunch the supply of strata-titled office space units in the city center, as well as it will aid to set up the need for and prices of such office spaces.”
The area, that consists of 2 rows of business structures and a part of remnant land between them, has a reservation price of $216 million. The cost is unchanged from the former tender released on Jan 19 for the place. The tender had closed on March 22 without any proposals.
Tracy Goh, PropNex’s head of investment and also cumulative sales, highlights the industrial zoning of the area means that it is not subjected to additional buyer’s stamp duty (ABSD). On top of that, the prime workplace industry stands resistant, with rents climbing 5.1% q-o-q in 1Q2023. Goh expects the healthier workplace industry and also the ABSD hikes declared as part of the recent round of cooling down actions to lead to revived financial investment attention in the business real estate sector.