An exceptional opportunity for investors to acquire a rarely available asset set to benefit from the ongoing rejuvenation plans for Orchard Road
Singapore, 2 October 2024 – Edmund Tie & Company (EDMUND TIE), the exclusive marketing agent for the collective sale of United House, is pleased to offer for sale a prime freehold commercial redevelopment site located in Orchard Road – Singapore’s most iconic shopping, entertainment and lifestyle district.
United House sits on a rectangular freehold land plot of approximately 1,192.7 sq m. It enjoys a 51-metre frontage along Kramat Lane and a depth of approximately 23 metres. Under the Master Plan 2019, the property is zoned for ‘Commercial’ use with a plot ratio of 4.9.
The site can be redeveloped into a modern 10-storey commercial building with a gross floor area of up to 62,900 sq ft, complete with exclusive naming rights that is a rare opportunity in prime Orchard Road.
As United House falls outside of the areas where new strata subdivision of commercial space is restricted, the successful buyer has the flexibility to consider strata subdivision for the new development. Transactions of strata office units in Orchard Road have been active and a benchmark price of S$4,988 per sq ft has just been recorded last month in September for the sale of two office floors at Tong Building – underscoring the appeal of freehold commercial properties in prime Orchard Road.
Additionally, given its prime location in Orchard Road popular with tourists, the property is ideal for redevelopment into a hotel. Planning application for “Hotel” use with a plot ratio of 4.9 has already been submitted and is currently pending approval from the Urban Redevelopment Authority.
For the first time, United House has achieved the 80% owners’ consent in both strata area and share value, following three earlier collective sale attempts that did not manage to reach this stage. Consequently, this marks a significant milestone that the site is now officially available for sale.
At a reserve price of S$166 million, this works out to a land rate of S$3,025 per sq ft per plot ratio for commercial redevelopment. For hotel redevelopment, subject to planning approval, the land rate will be S$3,318 per sq ft per plot ratio.
Ms Swee Shou Fern (徐晓芬), Head of Investment Advisory of EDMUND TIE, says, “United House’s launch comes at a pivotal time, as Orchard Road is undergoing exciting transformation into a thriving lifestyle destination. The ongoing enhancements to Orchard Road, coupled with United House’s redevelopment potential, are highly likely to result in significant capital appreciation in time to come. The successful buyer will, therefore, benefit from this rare opportunity to capitalise on Orchard Road’s future growth, which will continue to attract both local and international interest.”
Construction works is in progress for Faber House which will be redeveloped into 250-key hotel and a major revamp of The Cathay is expected to complete by end of this year. Other potential major redevelopment or asset enhancement projects underway include Tanglin Shopping Centre, Ming Arcade, Delfi Orchard, Stamford Court and Wilmer House.
Also in the pipeline is Hotel Properties Limited tapping into the Strategic Development Incentive (SDI) scheme to redevelop Voco Orchard Singapore, Forum The Shopping Mall and HPL House into a mixed-use project.
Ms Swee adds, “Investors can also consider seeking bonus plot ratio under the SDI scheme by redeveloping United House and its neighbour(s) together, subject to planning approval.”
United House boasts a prime location in the vibrant Orchard Road/Dhoby Ghaut precinct and is within a short walking distance to both Dhoby Ghaut MRT interchange and Somerset MRT station. Key landmarks – such as The Istana, Singapore Management University, Plaza Singapura, Paragon, Ngee Ann City, ION Orchard, Mount Elizabeth Hospital, Singapore Art Museum and the National Museum of Singapore – are all easily accessible on foot, further enhancing its appeal to investors seeking excellent connectivity and proximity to amenities.
The tender for United House will close on 14 November 2024 at 3.00pm.
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