Verdun House En Bloc Sale 2021

Verdun House, a commercial site with a reserve price of S$55 million, has been put up in the collective sale market via tender on Wednesday.

The news was announced by Delasa, their marketing agent and according to them, this is the owners second attempt at en bloc sale.

They also mention that 93% of the strata-titled unit’s owners have consented to the sale.

Base on the reserve price and potential commercial (GFA) gross floor space of 30,727 sq ft, the land rate will be around S$1,790 per square foot.

The owners first launched their tender was back in March 2018, their asking price was set at S$60 million but with no success.

With improved market conditions and right timing, they try their luck again this year.

The four-story freehold development is located on the intersection of Sam Leong Road and Verdun Road around 370 meters away from the Farrer Park MRT station.

The land which is zoned for commercial, spans 7,300 square feet (sq ft) with a gross plot ratio of 4.2 and a maximum permissible height of six storeys.

Currently on the ground level of the commercial building, there are 2 eateries and 2 shops while apartments occupy at the upper levels.

Karamjit Singh, chief executive officer of Delasa said that the buyer has the redevelopment option which can redevelop the freehold site into a retail-cum-office building.

Because of the commercial zoning, foreigners and public-listed entities may buy the entire building for a long-term hold, despite the fact that it only has twelve apartments.

Long-term investors may opt to keep the building in its existing state and postpone their redevelopment plan for a later date.

He noted that the existing contracted rentals yield about 2% each year, which is acceptable for a freehold redevelopment site with no time constraint to reconstruct.

Mustafa Centre, City Square Mall, Parkroyal, Park Hotel and Connexion, a high-rise integrated healthcare and hotel complex, are all within walking distance of the mixed-use site.

Mr. Singh added that from a strategic location perspective, Verdun House is expected to benefit from the increasing commercial and medical tourist footprint around Farrer Park as well as any spill-over activity emerging from its closeness to Health City Novena.

The public tender for Verdun House enbloc site will close on Sep 27, 2021 at 2.30pm.