Three plum residential properties close to Orchard Road, and ripe for redevelopment, have been put on the market.
Estimated to fetch $200 million combined, the three multi-storey buildings are owned by a group of three investment holding firms.
The owners are said to be part of a trust operating out of Britain, The Business Times reported earlier this month. The assets are reportedly under a London-based wealth management firm that makes investments for rich people, families and charitable endowments.
The three properties are leased, with the occupancy rate across the entire portfolio at about 50 per cent.
Of the three, the 12-storey block at 3 Cuscaden Walk is the oldest and has the most redevelopment potential. Built in the early 1990s, it has 11 units of large four-bedroom apartments, and is a stone’s throw from Orchard MRT station. It sits on a land area of 21,560 sq ft.
The property is ripe for redevelopment into a modern luxurious high-rise residential tower with, for example, 30 units of 2,000 sq ft apartments.
It could attract offers of more than $100 million, or about $1,900 per sq ft per plot ratio (psf pr).
The second property, an 11-storey block of 18 flats at 120 Grange Road, is near the Indonesian embassy and the upcoming Orchard Boulevard MRT station, while the third property at 8 Hullet Road, the smallest and newest of the three, is a 10-storey block with 18 units within walking distance of Somerset MRT station.
The land size is 15,780 sq ft and 10,733 sq ft respectively.
Ballpark figures of $50 million for the Grange Road property and $35 million for the Hullet Road building are expected.
The investment company also owns two apartments at The Claymore..
Mr Eugene Lim, ERA Realty key executive officer, said that buying sentiment has improved in the high-end segment of the market. Developer interest could also be piqued by the redevelopment potential of the buildings, he said.
“The smaller buildings could be more popular, given their more palatable quantum. Even if the projects are redeveloped, a fewer number of units would mean less risk to the developer as well.”
Adapted from: The Straits Times, 29 September 2016