Compare price trend of Condo new sale vs EC new sale
The commercial building, United House, located at 20 Kramat Lane, has recently been put up for collective sale at a reserve price of $166 million. The sale is being managed by real estate firm, Edmund Tie. This is the fourth time that United House has been put up for collective sale, with the previous three attempts failing to secure the necessary 80% approval from the owners in terms of strata area and share value.
According to Edmund Tie, the freehold site covers an area of 12,838 sq ft and has a plot ratio of 4.9. It is zoned for commercial use under the Master Plan and 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.
This means that the reserve price translates to $3,025 per square foot per plot ratio (psf ppr) if the site is redeveloped into a new commercial project. Swee Shou Fern, the head of investment advisory at Edmund Tie, explains that United House is not subject to the restrictions on strata subdivision in certain areas. This allows the successful buyer to consider strata subdivision for the new development.
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Edmund Tie has also submitted a planning application to change the land zoning of United House to hotel use, with a plot ratio of 4.9. If approved, the land rate would increase to $3,318 psf ppr. The consultancy believes that the prime location of United House along Orchard Road, coupled with its redevelopment potential, makes it an ideal site for a hotel.
The ongoing enhancements to Orchard Road, along with the redevelopment potential of United House, are likely to result in significant capital appreciation in the future, says Swee. The Concorde Hotel & Shopping Centre, next to United House, is also attempting a collective sale. The 99,623 sq ft plot is priced at $820 million, including bonus GFA from balconies and a lease top-up premium of $213.1 million, bringing the land rate to $1,801 psf ppr.
Amidst the flurry of redevelopment and asset enhancement initiatives along Orchard Road, United House is conveniently located within walking distance to Somerset MRT Station on the North-South Line, as well as Dhoby Ghaut Interchange, which serves the North East, North-South and Circle Lines.
Interested parties can submit their bids for the collective sale tender of United House until November 14.