Freehold United House Orchard Road Launches Collective Sale 166 Mil
United House, a freehold commercial building located at 20 Kramat Lane, just off Orchard Road, has been put up for collective sale with a reserve price of $166 million. The sale is being managed by property consultancy firm, Edmund Tie.
This is the fourth attempt at a collective sale for United House, with previous attempts failing to meet the necessary owners’ consent of 80% in both strata area and share value, according to Edmund Tie.
The site, measuring 12,838 sq ft, has a plot ratio of 4.9 and is zoned for commercial use under the Master Plan. Edmund Tie estimates that the site can be redeveloped into a 10-storey commercial building with a gross floor area (GFA) of up to 62,900 sq ft.
Read also: A freehold strata retail unit at Lucky Plaza is also up for sale at $32 million
Based on the reserve price, the cost of redeveloping the site into a new commercial project would amount to $3,025 per square foot per plot ratio (psf ppr).
“United House is situated outside of the areas where new strata subdivision of commercial space is restricted. This gives the successful buyer the flexibility to consider strata subdivision for the new development,” says Swee Shou Fern, head of investment advisory at Edmund Tie.
The consultancy further reveals that a planning application has been submitted to the Urban Redevelopment Authority (URA) to change the land zoning for hotel use, with a plot ratio of 4.9. If this is approved and the site is redeveloped into a new hotel project, the land rate would increase to $3,318 psf ppr.
“With its prime location along the Orchard Road shopping belt, the site has great potential for redevelopment into a hotel,” says Swee. “The ongoing enhancements to Orchard Road, coupled with United House’s potential for redevelopment, are likely to result in significant capital appreciation in the future.”
The adjacent Concorde Hotel & Shopping Centre at 100 Orchard Road is also currently attempting a collective sale. The 99,623 sq ft plot is owned by Mainboard-listed Hotel Properties and is priced at $820 million. This 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 buildings along Orchard Road are also undergoing redevelopment or asset enhancement projects. Two notable projects nearby are The Cathay and Faber House, which is being redeveloped into a 250-key hotel.
Read also: A strata office unit at Samsung Hub was recently sold for $14.8 million, equating to $4,117 psf.
United House is conveniently located within walking distance to Somerset MRT Station, serving the North-South Line, and Dhoby Ghaut Interchange, which serves the North East, North-South, and Circle Lines.
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The collective sale tender for United House will close on November 14. Ask BuddyCompare price trends between new sale condominiums and executive condominiums (ECs)Recently launched projectsPast condominium rental transactionsMost unprofitable landed transactions in the past yearCompare price trends between new sale condominiums and ECsCompare price trends between new sale condominiums and ECsRecently launched projectsPast condominium rental transactionsMost unprofitable landed transactions in the past yearCompare price trends between new sale condominiums and ECs