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Thong Sia building (pictured), a 26-storey residential and commercial building in Orchard Road has been put up for sale on Wednesday (10 December), exclusive marketing agent JLL said. The owners of the property are expecting offers between S$400 million and S$420 million.
Built in 1981, this is the first time the entire building has been put up for sale. According to JLL, over 80 percent of the owners, measured both by share value as well as strata floor area, have consented to the collective sale.
Located along Bideford Road near The Paragon shopping mall, the property has a land area of approximately 21,602 sq ft, and currently comprises seven levels of commercial space and a 19-level residential tower of 37 apartments.
Thong Sia Building has an existing gross floor area (GFA) is approximately 156,300 sq ft with a plot ratio of about 7.236, higher than the gross plot ratio (GPR) of 4.9 plus under the Urban Redevelopment Authority (URA) 2014 Master Plan.
JLL said the asking price translates to a rate of approximately $2,559 to $2,687 per sq ft. “If the government allows the sale of an adjoining road that just serves Thong Sia Building, the purchaser’s costs could go down to $2,414 to $2,532 per sq ft,”the agency added.
“A purchaser could choose to refurbish the building, or have the whole property redeveloped. With 100 per cent control over the asset, the purchaser is also free to change the name of the building, which is great for branding purposes,” Karamjit Singh, International Director at JLL, said.
He added that the purchaser could also consider using the commercial space for medical space to capitalize on the site’s proximity to Mount Elizabeth Hospital, Gleneagles Hospital and Paragon Medical, and consider converting the residential component into serviced apartments.
The tender exercise for Thong Sia Building will close on Wednesday, 28 January 2015.
Image source: JLL
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg.
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