Recently launched projects Past Condo rental transactions Most unprofitable landed transactions in past 1 yearIn a recent announcement, Edmund Tie revealed that the freehold commercial building, United House, located at 20 Kramat Lane just off Orchard Road, has been put up for a collective sale with a reserve price of $166 million. The collective sale is being managed by the renowned real estate firm.
This marks the first successful collective sale launch of United House, following three previous attempts that failed to garner 80% of owners’ consent in both strata area and share value, according to Edmund Tie.
Standing on a 12,838 sq ft site, the property has a plot ratio of 4.9 and is zoned for commercial use under the Master Plan. Edmund Tie states that the site has the potential to be redeveloped into a 10-storey commercial building with a gross floor area (GFA) of up to 62,900 sq ft.
Accordingly, the reserve price translates to $3,025 psf per plot ratio (ppr) if the site is redeveloped into a new commercial project.
“The location of United House falls outside of the areas where new strata subdivision of commercial space is restricted. This allows the successful buyer to consider strata subdivision for the new development,” explains Swee Shou Fern, head of investment advisory at Edmund Tie.
The consultancy has also revealed that a planning application to change the land zoning for hotel use, with a plot ratio of 4.9, has been submitted to the URA. If approved and the site is redeveloped into a new hotel project, the land rate would increase to $3,318 psf ppr.
With its prime location along the Orchard Road shopping belt, the site is ideal for redevelopment into a hotel, adds Swee. She also points out that ongoing enhancements to Orchard Road, coupled with United House’s redevelopment potential, would highly likely result in significant capital appreciation in the future.
Adjacent to United House, the Concorde Hotel & Shopping Centre at 100 Orchard Road is also attempting a collective sale. The 99,623 sq ft plot is owned by Mainboard-listed Hotel Properties and has been priced at $820 million. This price tag includes bonus GFA from balconies and a lease top-up premium of $213.1 million, bringing the land rate to $1,801 psf ppr.
Other buildings along Orchard Road are currently undergoing redevelopment or asset enhancement initiatives, such as The Cathay and Faber House, which is being redeveloped into a 250-key hotel.
United House is situated within walking distance from Somerset MRT Station along the North-South Line and Dhoby Ghaut Interchange serving the North East, North-South, and Circle Lines.
The collective sale tender of United House closes on Nov 14.