A vast majority of owners of Verdun House, a development constructed in 1982, agreed to sell the property en bloc when they met recently in an extraordinary general meeting.
Their asking price is S$60 million, and the public tender is set to close on Apr 18, 2018.
Verdun House is a mixed-use property with twelve apartments and four shops, but the site has now been zoned for commercial use.
The owners of the 7,316 sq ft site have sought clarification regarding the area development baseline, and they are awaiting response from the relevant authorities.
Based on the property reserve price, the land rate is S$2,100.
If the new developer constructs units whose average size is 550 sq ft, the site would hold up to 50 units for commercial use, and the total gross floor area (GFA) would be 30,728 sq ft subject to relevant approvals.
According to Andy Gan, head of investment sales at Singapore Realtors Inc (SRI), it is rare that owners of a mixed-use property like Verdun House reach consensus quickly, but the owners of Verdun House hit the 80% consent mark in one sitting.
Gan explained that it is usually a big challenge for property owners to come to an agreement in a collective sale, when their individual properties fall under different use-types.
He said the method of apportioning sales proceeds is usually a bone of contention, but in this case the owners were very cordial to one another and signed for consent amicably by great majority.
In his opinion, it is indication that Verdun House owners are not only united, but also eager to sell their property en bloc.
The Verdun House site is easily accessible with Farrer Park MRT Station close by. The Freehold site is best use for Commercial Development due to High human traffic in the area.