A 33-year-old mixed development at Orchard Road is up for collective sale for the first time, revealed marketing agent JLL.
Located opposite The Paragon shopping mall, the freehold Thong Sia Building (pictured) sits on 21,602 sq ft of land, consisting of seven levels of commercial space and another 19 floors of 37 apartment units.
The Urban Redevelopment Authority (URA) confirmed the existing gross floor area (GFA) is approximately 156,300 sq ft with a plot ratio of about 7.236.
The site could be redeveloped with 40 percent of the GFA set aside for commercial space and the remaining 60 percent for residential use.
More than 80 percent of the building’s owners, measured both by share value as well as strata floor area have consented to the sale.
According to JLL, the owners are expecting offers in the range of $400 million and $420 million, which translates to around $2,559 to $2,687 psf on the GFA. But the sale price could be lowered to $2,414 – $2,532 psf if the government decides to allow the sale of an adjoining road that just serves the building.
Responding, Karamjit Singh, International Director at JLL said: “Singapore’s Orchard Road is world renowned, and in the top league alongside London’s Bond Street, Paris’ Champ Elysees and Tokyo’s Ginza. Property ownership in this district, especially freehold, is a matter of great prestige, privilege and value.”
The tender for Thong Sia Building will close on 28 January 2015.
Image: Exterior of Thong Sia Building. (Photo by JLL)
Romesh Navaratnarajah, Singapore Editor of PropertyGuru Group, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg
