The commercial enbloc property market is gathering steam. High Street Centre, the mixed-use tower in the Central Business District is launching for collective sale on Tuesday (June 16).
The site which is approved for hotel and commercial use has set an S$800 million reserve price in its public tender.
The property was launched for sale after owners who hold more than 80% of the share value and strata area in this residential cum commercial property agreed to the collective sale.
This was disclosed by Cushman & Wakefield who have been appointed as the official marketing agent for this sale.
Spanning total area of 60,299 sq ft (5,601.9 sq m), the High Street Centre has 466,085 sq ft (43,300.72 sq m) of GFA (Gross Floor Area) and has an impressive GPR (Gross Plot Ratio) of 7.72.
According to the marketing agents of the sale, the URA (Urban Redevelopment) would approve redevelopment of 60% of the gross floor area for commercial use which may be used for retail that included F&B and also for office use.
The remaining 40% in the redevelopment can be used for developing a hotel, residential properties or serviced apartments.
According to the agents, the URA would approve a 450-key hotel at this site. The Collective Sales Committee has also applied for topping-up of the lease tenure to a new 99-year term.
Taking note of the reserve price of S$800 million, the land rate would stand S$2,257 and S$2,439 psf ppr depending on differential premium payment and also the fee for increasing the lease tenure. This was informed by an official of the Cushman & Wakefield.
Christina Sim, Cushman & Wakefield’s Director of Capital Markets in a statement said that 1, North Bridge Road offers a great investment opportunity for a developer looking for a footprint in the Central Business District.
Such sites are hard to find and don’t hit the market too often. She added that this site offers great prospects of growth and return on investment given the fact that commercial spaces would be scarce in this area till 2025.