Verdun House relaunched for sale at $55 mil
/ EdgeProp Singapore |
Verdun House has been relaunched for sale at a reserve price of $55 million (Photo: Delasa)
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SINGAPORE (EDGEPROP) - Verdun House, a mixed-use development located at the corner of Verdun Road and Sam Leong Road in Farrer Park, has been relaunched for sale by tender with a reserve price of $55 million. The owners of 15 out of the 16 strata-titled units at Verdun House have consented to the sale, representing a mandate of over 93% of the development.
Map and overview of Verdun House (Source: EdgeProp LandLens)
The four-storey property, which houses four shops and eateries on the ground level and 12 apartments on the upper levels, was built in the 1980s. It sits on a freehold 7,300 sq ft plot of land that is zoned for commercial use under the 2019 Master Plan with a plot ratio of 4.2. (Find Singapore commercial properties with our commercial directory)
To that end, the site could potentially be redeveloped into a six-storey retail-cum-office building with a gross floor area (GFA) of around 31,000 sq ft, notes Karamjit Singh, CEO of Delasa. Delasa, a property consultancy and investment sales specialist, has been appointed as the marketing agent for the property.
The reserve price of $55 million works out to $1,790 psf based on the potential GFA of 30,727 sq ft. No development charge is payable upon its redevelopment.
Verdun House was previously launched for collective sale last August at the same guide price of $55 million. Prior to that, the owners had previously attempted a collective sale in 2018, with an asking price of $60 million.
The property is located some 370m from Farrer Park MRT Station. Combined with its central location and easy access to eateries and shopping amenities, Singh believes the property is suited for a variety of uses, including as a commercial school, co-living space, or as a corporate office with showrooms or F&B outlets on the ground level.
As a commercial school building, Verdun House could potentially fit some 30 classrooms on the upper levels, accommodating 700 to 800 students. “Of late, we have been receiving increasing enquiries from international schools for space. Ideally, they would prefer premises with open grounds but the supply of such properties is extremely tight. Such schools are beginning to consider city campuses as a viable option provided it is well-served by public transport and amenities,” Singh explains.
Strong demand is also anticipated from investors keen to tie-up with co-living operators to manage the 12 apartment units on the upper levels. Given Verdun House’s commercial zoning, foreigners and public-listed entities would be able to acquire the entire building even though the building comprises residential units.
“We expect investors to retain the building in its current form and refurbish the apartments catering to the strong rental market. In doing so, investors could look towards gross returns of about 3% per annum,” Singh highlights.
Recent commercial sales transactions within 1km vicinity of Verdun Road (Source: EdgeProp Research tool)
The tender exercise is scheduled to close on April 26 at 2.30pm.
Check out the latest listings near Verdun House, Farrer Park MRT Station
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