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News Release

Singapore

Ultra-prime Freehold Redevelopment Site off Orchard Road for Sale by Trustees

Suitable for hotel or high-rise residential development


​SINGAPORE, 4 APRIL 2016 – An ultra-prime freehold site located along Cuscaden Road, off Orchard Road, has just been put up for sale by tender. The existing detached house is now being sold by the trustees of the estate of the late owner, who purchased it in the 1950s. JLL has been exclusively appointed by the trustees to market the property.

With a land area of 25,741 sq ft, the site is zoned 'Hotel' in the 2014 Master Plan, with an allowable gross plot ratio (GPR) of 4.2. The Urban Redevelopment Authority (URA) has advised that it is also prepared to consider a redevelopment proposal into a 20-storey residential development. In both proposals, commercial space on the first storey may be allowed. This offers purchasers with two distinct and attractive redevelopment options, subject to design, approval and payment of development charges.  ​

Flanked by spanking new high-rise developments, the property is located within a prestigious enclave a mere 200 metres off Orchard Road. The immediate vicinity includes upscale developments such as The St Regis Singapore, St Regis Residences, Cuscaden Residences, Four Seasons Hotel, Orchard Parade Hotel, and Forum The Shopping Mall. The Orchard MRT station is within walking distance, while the upcoming Orchard Boulevard MRT, which is part of the new Thomson-East Coast Line, is approximately 500 metres away.

Said Mr Karamjit Singh, International Director at JLL: "This detached house stands out as one of the last remaining undeveloped plots at Cuscaden Road. Such opportunities to acquire development sites in and around Orchard Road, especially freehold ones, are rare to come by, be it for residential or hotel use."

He added: "We anticipate strong interest from developers and investors, both locally and regionally. Properties located within the Orchard area are regarded as prized assets and are often highly sought-after. Supply, however, is tightly-held by institutions and generational owners."

The last sale of a prime high-rise residential redevelopment site in Singapore took place three years ago, when Swire Properties of Hong Kong acquired Hampton Court at Draycott Park for $155 million. This worked out to a reported rate of $2,526 psf per plot ratio, inclusive of development charges (DC) payable.

As for freehold hotels and sites for hospitality developments in and around Orchard Road, there were only two major transactions over the last three years. Last year, Thong Sia Building changed hands in a collective sale at a price of $380 million, reflecting $2,431 psf on the allowable gross floor area. The buyer is reported to be considering redeveloping it into a mixed-use development comprising retail, medical suites and serviced apartments. Nearby, the 308-room Grand Park Orchard Hotel was sold in 2013 for $1.16 billion. This reflects $4,640 psf on the existing gross floor area which includes the Knightsbridge retail podium. Both these deals were brokered by JLL.  

"This site at Cuscaden Road is the first redevelopment site for hotels to be made available for sale in the Orchard planning area in more than 10 years. It could also very well be one of the last opportunities for strategic investors to acquire land for hotel development in this location for many years to come," said Mr Nihat Ercan, Executive Vice President of JLL's Hotels & Hospitality Group.

Mr Singh added: "A purchaser could redevelop the site into a mid to upscale hotel with around 300 rooms, depending on the design. Alternatively, a residential developer may be able to accommodate as many as 185 small 'shoebox' apartments with an average size of 540 sq ft, or 50 units of 2,000 sq ft apartments, depending on the configuration of the building and subject to approval from the relevant authorities."

The vendors are expecting offers in the region of $160 million to $170 million. Interested parties are invited to submit their tenders by 2.30 pm on Thursday, 12th May 2016.

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Notes to Editors:

A high-resolution image of the property can be downloaded here.