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Two freehold redevelopment sites off Lavender Street have been put up for sale, with 2 Cavan Road priced at $47.4 million and 21 Cavan Road at $12.6 million, revealed joint marketing agents CBRE and HRL Properties.
With a land area of about 20,100 sq ft, 2 Cavan Road is currently occupied by a part-single-part-three-storey light industrial-cum-warehouse building that is understood to have been constructed in the 1950s. The smaller site at 21 Cavan Road has a land area of 8,529 sq ft and currently houses a four-storey light industrial building completed in 1975.
The marketing agents noted that the two sites are zoned residential with commercial at first storey under the 2014 Master Plan with a plot ratio of 3.0.
Since the current gross floor area (GFA) of the two buildings are under-utilised, the buyer can consider maximising the GFA of 2 Cavan Road to around 60,301 sq ft and 21 Cavan Road to 25,588 sq ft upon redevelopment.
“Subject to relevant authorities’ approval, new extensions within the conservation guidelines of up to a six-storey building height are permitted, of which relevant development charges will be applicable,” the marketing agents said.
And since both sites belong to a single owner, approval from the Strata Titles Board will no longer be required.
Should the existing building at 2 Cavan Road be conserved and incorporated within the proposed redevelopment, a development charge of $18.9 million would be payable for the site. The redevelopment of 21 Cavan Road, on the other hand, would require a development charge of $15.5 million.
CBRE capital markets manager Low Choon Sin expects the two sites to “attract keen interest from mid-sized developers and contractors due to the palatable quantum as well as the potential to redevelop” the sites into a boutique mixed-use development.
“Such mixed-use developments typically have a strong appeal to home buyers due to the freehold tenure in a city fringe location. The short walking distance to both Bendemeer and Lavender MRT stations are strong plus factors,” he added.
The tender for the sites will close on 30 April.
Photo: CBRE
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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