Commercial site at Hoe Chiang Road and Lim Teck Kim Road up for collective sale at $216 mil
Tracy Goh, top head of investment and also collective sales at PropNex, observes that the two existing buildings on the plot are exclusively five-storeys high. “The successful purchaser can redevelop this site to construct a 35-storey tower to grasp possible profits from the plot ratio of 5.6 following the URA Master Plan,” she explains.
A 999-year leasehold commercial spot marked by Hoe Chiang Road and also Lim Teck Kim Roadway are going to be introduced for combined sale on Jan 19, according to a news release by marketing rep PropNex Realty, The site, which consists of 2 rows of business establishments and even a portion of portion land around them, has a reservation rate of $216 million.
The location is positioned near the Greater Southern Waterfront district and also is within strolling range to the Tanjong Pagar MRT Terminal, in addition to the upcoming Cantonment and even Prince Edward Road MRT Stations which schedule for completion in 2026. Goh also expects the site to even more gain from the recurring revitalization taking place in its area. Redevelopment projects in the area consist of Keppel South Central, Newport Tower and the past Real estate Centre, while upcoming mixed-use development One Bernam is even close.
The structures rise at 1 to 9 Hoe Chiang Roadway (odd numbers solely) together with 2 to 10 Lim Teck Kim Roadway (even numbers only). Together with the portion land, the entire site has a complete estimated land area of around 18,540 sq ft. The rectangular-shaped plot is zoned for business usage furthermore has a gross plot ratio of 5.6.
The reservation cost works out to an estimated land price of $2,602 psf per plot ratio (psf ppr) for an office property, inclusive of a land improvement charge of $54.1 million, according to PropNex. The consultant includes that the buyer has the option to redevelop the area right into an accommodation change, in which situation the reservation cost would certainly equate to a land rate of $2,662 psf ppr inclusive of a projected land enhancement charge of $60.4 million.
The collective sale tender for the site will close on Mar 22 at 2pm.
Offered the area’s location and redevelopment potential, Goh assumes avid acquiring enthusiasm for the plot. She includes that due to the building cooling solutions rolled out by the administration in December 2021 and September 2022, even more investor might transform their attention to business property sites, which are exempt to extra buyer’s stamp responsibility.
She adds that the site provides an excellent opportunity to construct a brand-new hotel or serviced flat to help visitors and company tourists. “As overseas traveling carries on post-pandemic and also the authorities having allowed about $500 million to kick-start the tourism industry, we project Singapore’s hospitality sector to observe a maintained revival over the next couple of years.”