Situated off Lavender Street, two Freehold redevelopment properties are now for sale and open for a public tender. Joint marketing agents HRL Properties and CBRE reveal the indicative selling price of 21 Cavan Road at S$12.6 million and of 2 Cavan Road at S$47.4 million.
2 Cavan Road property houses a light industrial warehouse building with its approximately 20,100 square feet. The building was built during the 1950s.
It is projected that its development can cost S$18.9 million considering its conservation and proposed redevelopment integration.
The smaller light industrial building 21 Cavan Road, which is located just across the street, has a land area measuring 8,529 square feet. The four-storey building was completed in 1975. Its development costs S$15.5 million, which is payable for the site’s redevelopment.
It is noted that the guide pricing rate for each of these sites is S$1,100 psf ppr. Such rate came after the development charge factoring.
Both properties belong to the residential with commercial at first storey zone. They have a 3.0 plot ratio based on the 2014 Master Plan of the Urban Redevelopment Authority.
As indicated in the statement, the existing gross floor area of these buildings is less utilized. This allows potential buyers to maximize the 21 Cavan Road’s gross floor area to 25,588 square feet and that of 2 Cavan Road to 60,301 square feet upon their respective redevelopment.
It permits new extensions for these sites guidelines to as much as a six-storey building height under certain conservation and still subjective to the approval of relevant authorities.
For this case, charges for significant development will be applicable. Strata Titles Board approval is not necessarily a requirement since both sites are owned by the same person.
CBRE capital markets manager Low Choon notes the avid interest of mid-sized contractors and developers.
Choon points out that such interest is already expected because of the potential redevelopment into a multi-purpose boutique development and the palatable quantum of these estates.
He stresses that typically, these mixed-used developments are very attractive to homebuyers mainly due to a city fringe location’s freehold tenure.
He adds the plus factors of the short walking distance of the sites to Lavender and Bendemeer MRT stations.