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A freehold site located along Cuscaden Road, off Orchard Road, has just been put up for sale by tender, JLL announced in a press release on Monday (4 April).
According to JLL, the existing detached house is now being sold by the trustees of the estate of the late owner, who purchased it in the 1950s.
The site, zoned for hotel use under the 2014 Master Plan, has a land area of 25,741 sq ft and comes with an allowable gross plot ratio (GPR). “The Urban Redevelopment Authority (URA) has advised that it is also prepared to consider a redevelopment proposal for a 20-storey residential development. In both proposals, commercial space on the first storey may be allowed. This offers purchasers with two distinct and attractive redevelopment options, subject to design, approval and payment of development charges.”
JLL expects strong interest from developers and investors, borth locally and regionally. “This detached house stands out as one of the last remaining undeveloped plots at Cuscaden Road. Such opportunities to acquire development sites in and around Orchard Road, especially freehold ones, are rare to come by, be it for residential or hotel use,” said Karamjit Singh, international director at JLL.
“Properties located within the Orchard area are regarded as prized assets and are often highly sought-after. Supply, however, is tightly-held by institutions and generational owners,” he added.
There were only two major transactions over the last three years for freehold hotels and sites for hospitality developments in and around Orchard Road, the property consultancy said.
Thong Sia Building changed hands in a collective sale at a price of $380 million last year, reflecting $2,431 per sq ft on the allowable gross floor area. The buyer is reported to be considering redeveloping it into a mixed-use development comprising retail, medical suites and serviced apartments. Nearby, the 308-room Grand Park Orchard Hotel was sold in 2013 for $1.16 billion. This reflects $4,640 per sq ft on the existing gross floor area which includes the Knightsbridge retail podium. Both these deals were brokered by JLL.
“This site at Cuscaden Road is the first redevelopment site for hotels to be made available for sale in the Orchard planning area in more than 10 years,” said Nihat Ercan, executive vice president at JLL’s Hotels & Hospitality Group. “It could also very well be one of the last opportunities for strategic investors to acquire land for hotel development in this location for many years to come,” he added.
According to the press release, the vendors are expecting offers in the region of S$160 million to S$170 million. Tender exercise for this site will close on 12 May.
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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