For a reserve price of S$60 million, ICB Shopping Centre is prepped up for a collective sale.
The freehold site launched its first public tender last January 22, 2018, Monday.
This is one of the manifestations of the collective sale trend, taking over Singapore by storm in the previous years.
In 2017, the overall transaction value for commercial and residential en bloc sales reached S$8.73 billion compared to its S$1 billion, the year before.
The site for ICB Shopping Centre is past the Upper Serangoon Road, a location targeted for mixed-use development.
The S$60 million reserve price is quite appealing, which is translated to S$1,401 (psf ppr) per square foot per plot ratio.
It is worth noting that the collective sale is but a second attempt for the property.
The ICB Shopping Centre owners recently hired CBRE Singapore for their services as a marketing agency.
Moreover, the developers needed to comply with the S$5.37 million payment for the development charge.
It will be an allocation for the intensification of the site’s land use.
CBRE’s Capital Markets director, Galven Tan, stated that there are two reasons why the transaction will be a remarkable opportunity for ICB Shopping Centre developers.
First, there is huge incentive because 100% of the property owners gave their consent.
Secondly, it offers a unique potential for ICB developers due to the property’s multi-use site.
It attracts a much wider scope of customers, particularly those who would consider it a great investment later on.
CBRE also added that ICB Shopping Centre has huge potentials for maximum permissible development for its 15,547 square feet location, along with an ideal 3.0 plot ration.
The ICB site category is for both residential and commercial purposes, based on the 2014 Master Plan.
The plot depth is 50 meters, which means developers could enjoy immense flexibility when it comes to redevelopment experimentation in the site.
ICB site enjoys a Freehold Status along with a 3.0 Plot Ratio
There is no need for STB approval because the owners gave 100% approval, allowing developers to save time
It offers timing and speed for developers especially in terms of buying, designing, redeveloping, and fast launching
Ideal investment for small developers
It is a “Sweet Spot” (below $100 million) for developers
Property’s potential for redevelopment into mixed-use or new projects due to the freehold site’s commercial and residential use zone, making it appealing to current Home Buyers
Close proximity to Serangoon MRT Station
Numerous schools within the local area or district
Developers are constantly looking for a freehold property with corresponding great price.
What will attract them the most is that a property they call “Sweet Spot” or those under S$100 million.
There is lower risk for this price range and it is easily profitable as well. Developers also consider amenities as essential features.
The proximity of Kovan MRT Station and Serangoon MRT Station is within a range of 1 kilometer.
ICB Shopping Centre enjoys good transportation access as you can find numerous bus stops conveniently located near the property. These stops are within the Nan Peng Centre district.
The site is quite near the Highland Centre and Serangoon Shopping Centre, which are easy to reach. Several eateries are within reach such as Rahim Muslim Food and “Have You Eaten” café.
Other properties nearby include NTUC fair price supermarket for groceries and other related items.
The ICB Shopping Centre site neighborhood is also consisting of many schools as well as the Serangoon Stadium. You can reach the DPS International School Singapore and St. Gabriel’s Secondary School.
Just 1 km away is Paya Lebar Methodist Girl’s Primary School.
Retail and residential local areas make ICB Shopping Centre the ideal investment for commercial property developers.
It promises potentials for facilities in the residential and medical niches.