Raffles Education Square building on sale of $200 mil
By Timothy Tay
/ EdgeProp Singapore |
The property is located at 51 Merchant Road in District 1 in Clarke Quay.
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SINGAPORE (EDGEPROP) - Raffles Education Square, a four-storey commercial building attached to two rows of conserved buildings, has been put up for sale at a guide price of $200 million. The land rate translates to approximately $2,660 psf per plot at a potential gross plot ratio of 2.8, including the land betterment charge. Knight Frank is the marketing agent.
The property is located at 51 Merchant Road in District 1 in Clarke Quay. The entire premise sits on a 27,669 sq ft plot with a gross floor area of 71,111 sq ft and two basement carpark levels. Knight Frank says the property has a leasehold tenure for an unexpired term of 69 years from May 15, 1993.
The original structure was built in 1996 and refurbished in 2013 to house the corporate offices and college campus of Raffles Education. The premise has been vacant since the school and office were vacated, paving the way for the divestment of the asset, adds Knight Frank.
Details of plot and the surrounding transactions can be found on EdgeProp's Landlens tool. (Map: EdgeProp Singapore)
“The property is strategically located in an area with great potential for an uplift in asset value from the revitalisation of the Singapore River precinct,” says Chia Mein Mein, head of capital markets (land and collective sale), Knight Frank Singapore.
She adds: “This is a rare opportunity to acquire a commercial property that is set to benefit from the major urban renewal process that will transform the area into a new and vibrant lifestyle hub”.
According to Knight Frank, Raffles Education Square could potentially be redeveloped with the neighbouring The Riverside Piazza, a mixed-use strata commercial and residential development at 11 Keng Cheow Street. The agency says that the owners of Riverside Piazza are obtaining the requisite 80% approval to launch a collective sale. (Find Singapore commercial properties with our commercial directory)
Knight Frank says the property at 51 Merchant Road has a leasehold tenure for an unexpired term of 69 years from May 15, 1993. (Picture: Knight Frank)
“This possibility may allow the combined site to enjoy an uplift in gross floor area to capitalise on the rejuvenation initiatives for the area under the Urban Redevelopment Authority’s (URA) Strategic Development Incentive (SDI) scheme, subject to the authorities’ approval,” says Chia.
“Quality commercial assets are hard to come by as many are tightly held by institutional players and unavailable for sale. Private wealth also seeks commercial assets as this asset class is unaffected by the recent imposition of government cooling measures.”
The tender for the sale of Raffles Education Square will close on Aug 1.
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