Tai Wah Building, a four-storey building along Killiney Road, has been sold to private equity investment firm Lucrum Capital Pte Ltd for $84.9 million, revealed marketing agent Edmund Tie & Co.
This works out to around $2,209 psf per plot ratio.
Completed in the mid-1980s, the freehold building comprises two shops and six apartment units.
The site, which was zoned “residential with commercial at first storey”, has a land area of around 1,221.5 sq m (13,148 sq ft).
Edmund Tie & Co noted that Lucrum Capital plans to redevelop the site into a serviced apartment with commercial use on the first storey.
In fact, it has already submitted an application for such use which has received in-principle approval from the authorities.
As such, Lucrum Capital can redevelop the site up to its existing gross floor area of 3,568.81 sq m (about 38,414 sq ft), exceeding the permissible plot ratio of 2.8 as indicated in the 2014 Master Plan, but subject to authorities’ approval, it said.
“This is a unique and rare acquisition that allows us to plan and execute imminent and exciting real estate trends, and yet the new asset will complement existing bustling business activities in the immediate vicinity,” said Lucrum Capital.
Notably, Tai Wah Building is strategically situated in the heart of the Orchard Road shopping belt, near Somerset MRT Station.
This article was edited by Keshia Faculin.