SINGAPORE (EDGEPROP) - Verdun House, located at the corner of Verdun Road and Sam Leong Road in Farrer Park, has been launched for collective sale. The owners of 15 out of the 16 strata-titled units have consented to the sale so far, representing a mandate of over 93% of the development. (See also: Verdun House launched for sale at $60 million)

The four-storey block was built in the 1980s, and houses four shops and eateries on the ground floor and 12 apartments on the upper levels. The building sits on a freehold land area of 7,300 sq ft, which is zoned for commercial use with a plot ratio of 4.2 under the 2019 Master Plan.

The site can therefore be redeveloped into a new six-storey, retail-cum-office building with a gross floor area (GFA) of around 31,000 sq ft. Given its prominent corner frontage and location within 370m of Farrer Park MRT Station, Verdun House is “well-suited for a commercial school or a corporate office with showrooms or F&B on the ground level”, says Karamjit Singh, CEO of Delasa, a specialist in property consultancy and investment sales (formerly known as Showsuite Consultancy). Delasa is the appointed marketing agent for Verdun House.

“With the commercial zoning, foreigners and public-listed entities could acquire the entire building for long-term hold even though the building comprises 12 apartments,” points out Singh. The site will therefore appeal to long-term investors who may want to retain the existing building and defer redevelopment plans, he adds. Based on the current tenancies, the rental return is estimated at about 2% per annum. (See: Find Singapore commercial properties with our commercial directory)

The property has a reserve price of $55 million, which is $1,790 psf per plot ratio, based on the potential GFA of 30,727 sq ft. No development charge is payable upon redevelopment.

The owners of Verdun House had attempted a collective sale in 2018. The reserve price then was $60 million.

The Farrer Park area has undergone transformative changes over the years, notes Singh. “The city-fringe area used to be anchored by the iconic Mustafa Centre and nostalgic pre-war shophouses,” he says. Key landmarks in the area today include the 450,000 sq ft City Square Mall; Connexion, a high-rise integrated healthcare and luxury hospitality complex; medical suites at Farrer Square; and hotels such as Park Hotel and Parkroyal on Kitchener.

“From a locational perspective, Verdun House is set to benefit from the expanding commercial and medical tourism footprint around Farrer Park, and possibly spill-over business arising from its proximity to Health City Novena,” adds Singh.

There are also plans to introduce new private housing options in the areas surrounding Farrer Park MRT Station such as the current Farrer Park Field, which would bring about a higher live-in population, according to Singh. More recently, a government land sale site at Northumberland Road was sold in April this year to a joint venture between City Developments and MCL Land for $445.9 million or $1,129 psf ppr. The site may accommodate around 400 apartments. This is in addition to the existing 910-unit City Square Residences.

The tender exercise is scheduled to close at 2.30pm on Sept 27.

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