Jalan Besar commercial site, Park House in Orchard put up for sale

A commercial property in bustling Jalan Besar and an upmarket development site off Orchard Road have been put up for sale.

The freehold commercial site at the former New World Amusement Park in Jalan Besar Road is being sold at an indicative guide price of about $13.5 million, reflecting a unit land rate of about $1,392 per square foot per plot ratio (psf ppr), marketing agent JLL said yesterday. No development charge is payable to intensify the 3,230 sq ft site.

Mr Clemence Lee, JLL’s associate director for capital markets, said that after factoring in the development cost, the blended break-even for the new development would be around $1,925 psf. “This compares favourably to the average price of $5,000 to $5,500 psf achieved for the strata retail units and $2,400 to $2,500 psf for the strata office units at the nearby Arc 380 and Centrum Square,” he added.

Potential commercial uses for the new development include food and beverage services, offices, co-working and retail.

JLL said written permission has been obtained by the existing owner to develop the site to accommodate two four-storey units with a temporary eating house on the ground floor and office use for the upper floor. The approved gross floor area is 9,694 sq ft. There is also no additional buyer’s stamp duty or seller’s stamp duty imposed on the purchase of the property, JLL said. The sale exercise closes on May 30.

Separately, Park House in Orchard is up for sale by tender with a guide price of $308 million.

This reflects a land rate of about $2,387 psf ppr, or $2,170 psf ppr after taking into consideration the 10 per cent bonus gross floor area allowed for balconies.

Owners at the 56 apartments will receive at least $5 million each, while owners of four shops in the development will get no less than $6.65 million each, said marketing agent CBRE. The 46,084 sq ft freehold site has an allowable plot ratio of 2.8. Development charges are not payable as the baseline plot ratio is equivalent to about 3.66, CBRE said.

Located at the junction of Orchard Boulevard and Tomlinson Road, Park House is close to the malls like Paragon, ION Orchard, the St Regis Hotel and Four Seasons Hotel. It was completed about 50 years ago.

Mr Jeremy Lake, managing director of capital markets at CBRE, said he expects at least eight to 10 tender bids from developers based here and overseas in places like Hong Kong, Malaysia and China.

“We have talked about a collective sale on and off for the last 12 years or so but this time we were able to achieve 80 per cent support from the owners with the help of CBRE,” Mr Edward Ong, chairman of the sales committee, said. “Each of the residential owners should be able to get a handsome amount which is a very generous budget to buy a replacement property.”

The tender closes on May 31.