Realty Centre, an office development which located in District 2 Tanjong Pagar, has sold en bloc for S$148 million.
However, it was sold below the reserve price (S$165 million) set by Cushman & Wakefield, the appointed Marketing agent for this collective sale.
This will be the first CBD en bloc sold in 2019 with many more sites aim to launch within this year.
The Place Holdings, who is the buyer is a Singapore-listed company and has plan to redevelop the commercial property into a mix-use tower consist of residential and commercial which require approvals from the authority.
According to Singapore Exchange (SGX) filings, the new development may serve as the company’s headquarters.
The Place Holdings which deals with tourism-related business development and events organising, is supported by China’s The Place Investment Group.
Under the Urban Redevelopment Authority’s 2014 Master Plan, the Realty Centre site is zoned for commercial use and has plot ratio of 5.6 and has 35 storeys maximum storey height permissible. The freehold site sits in an area of 11,000 sq feet.
With the newly excitable announced CBD Incentive Scheme, it is noted that Realty Centre fall within the Anson precinct.
Which means that the freehold property is predicted to have bonus plot ratios which is between +25% and +30%.
Should there be change of use to residential and commercial, it will have a bonus of +25% and if change to residential with commercial on 1st storey then it will be higher which is +30%.
It needs to be mention that the Realty Centre en bloc site is sitting at the Right location where the whole area is undergoing “massive urban rejuvenation and transformation”. It is according to Christina Sim who is the director of capital markets.
In term of connectivity, it has 2 MRT Stations located close to the attractive site which are Tanjong Pagar MRT (East-West Line) and much anticipated Prince Edward station (Circle Line).