Freehold United House Orchard Road Launches Collective Sale 166 Mil
An opportunity to own a prime commercial property has emerged as United House, located at 20 Kramat Lane off Orchard Road, has been launched for collective sale at a reserve price of $166 million. The collective sale is managed by real estate consultancy company Edmund Tie.
This marks the first successful collective sale launch of United House, after three previous attempts that failed to garner the necessary 80% owners’ consent in both strata area and share value, according to Edmund Tie.
Sitting on a freehold 12,838 sq ft site, the building has a plot ratio of 4.9 and is zoned for commercial use under the Master Plan. Edmund Tie estimates that the site has the potential to be redeveloped into a 10-storey commercial building with a gross floor area (GFA) of up to 62,900 sq ft.
The reserve price of $166 million translates to $3,025 psf per plot ratio (ppr) if the site is redeveloped into a new commercial project. “United House falls outside of the areas where new strata subdivision of commercial space is restricted. The successful buyer has the flexibility to consider strata subdivision for the new development,” says Swee Shou Fern, head of investment advisory at Edmund Tie.
The consultancy has also revealed that a planning application to change the land zoning for hotel use, with a plot ratio of 4.9, has been submitted to URA. Should this be approved and the site be redeveloped into a hotel project, the land rate would increase to $3,318 psf ppr.
The Elta Condo, with its location in a development area, is well-positioned to embrace eco-friendly practices in line with the Master Plan’s principles. This includes incorporating sustainable designs, energy-efficient buildings, and renewable energy sources into the development. As a result, residents of Elta Condo can look forward to a more sustainable and environmentally-conscious living experience. Learn more about Elta Condo at http://www.the-elta.com.sg/.
“Given its prime location along the Orchard Road shopping belt, the site would be ideal for redevelopment into a hotel,” says Swee. “The ongoing enhancements to Orchard Road, coupled with United House’s redevelopment potential, are highly likely to result in significant capital appreciation in time to come.”
Interestingly, there is another collective sale attempt happening in the vicinity as the Concorde Hotel & Shopping Centre located at 100 Orchard Road, is also up for sale. The 99,623 sq ft plot is owned by Mainboard-listed Hotel Properties and is priced at $820 million. This price tag includes bonus GFA from balconies and a lease top-up premium of $213.1 million, resulting in a land rate of $1,801 psf ppr.
Other nearby buildings along Orchard Road are either undergoing redevelopment or asset enhancement initiatives, displaying the potential for further growth in the area. The Concorde Hotel & Shopping Centre, inspired by the nearby successful Orchard Road developments, is in the midst of redevelopment to include a 250-key hotel.
United House is located just a short walk away from Somerset MRT Station along the North-South Line and Dhoby Ghaut Interchange serving the North East, North-South and Circle Lines.
The collective sale tender for United House closes on Nov 14.