Hoa Nam Building, a mixed development along Lavender Street/Jalan Besar has been put up for en bloc sale.
The owners have set an asking price of S$160 million for the mixed development.
Huttons Asia, the marketing agent for this sale has said that the price of S$1,866 psf is based upon the freehold building’s existing 85,744 sq ft gross floor area.
The GFA translates into 4.0133 times the site’s 21,365 sq ft plot size. Interestingly the 2014 Master Plan from the Urban Redevelopment Authority has fixed the plot ratio of 3.0 for this site.
There are 36 residential apartments along with 33 retail stores and 14 office units at Hoa Nam Building presently
The freehold property which is located in 27 Foch Road stands adjacent to Arc 380 the freehold mixed development which is a 16-level office tower having retail units in the ground level.
Completed in 2018, Arc 380 has become a landmark in the area and has been developed by a company that is linked to the Tong Eng Group.
Stephen Tan, Senior Group Director for Huttons Asia said that the site has good redevelopment potential and can be easily redeveloped into residential and commercial project up to its existing gross floor area.
He added that the developer can also exercise the option of altering the existing building.
Part of the city-fringe, Hoa Nam Building is located close to the Bendemeer MRT Station. Lavender and Farrer Park MRT Stations is only short walk away from the property.
Mr Tan said that the developers could explore the option of co-working and co-living spaces along the upper levels of the property while the lower levels can be used for eateries and retail shops.
Urban Redevelopment Authority has also advised that there is a possibility of rezoning this site for full commercial use with 3.0 plot ratio when few other conditions are met.
According to Mr Tan a potential buyer can avoid paying additional buyer’s stamp duty by opting for this option.
He concluded by saying that given the high development baseline for this property, development charges aren’t likely to be applicable.
Hoa Nam Building’s tender shall close on August 20, 2019.