The site could be developed into a “prominent mixed-use development that caters to the lifestyles of residents in the vicinity. Photo: OrangeTee Advisory
Siglap Shopping Centre along East Coast Road has been relaunched for collective sale via public tender with the guide price unchanged at $120 million, revealed marketing agent OrangeTee Advisory.
Featuring eight commercial units on the ground floor and eight apartments, the three-storey development in District 15 was completed in the 1980s and sits on a 39,635 sq ft site.
OrangeTee noted that there is an adjoining state land of around 5,005 sq ft that could be combined with the freehold site to form a bigger plot of about 44,640 sq ft, subject to the relevant authorities’ approval.
“Together with an estimated development charge of $47.47 million and an estimated alienation cost of $7.2 million for the state land, the reserve price works out to $1,235 per sq ft per plot ratio (psf ppr), after factoring in a 7% bonus residential gross floor area for private outdoor spaces,” it said.
OrangeTee Advisory Executive Director Edmund Lee said the reserve price for Siglap Shopping Centre now looks relatively attractive considering “how bid prices for similarly designated leasehold government land sites have risen quite substantially”.
Notably, a 651,001 sq ft site at Lentor Central was recently awarded for $1,204 psf ppr, which was 7% higher compared to the winning bid of $1,129 psf ppr for the Northumberland Road site awarded in April this year. It was also 30% higher than the $930 psf ppr winning bid for the Tanah Merah Kechil Link site awarded in September last year. All three land parcels come with 99-year lease tenure.
Lee said the site could be developed into a “prominent mixed-use development that caters to the lifestyles of residents in the vicinity”.
“It is a sweet spot for developers seeking investments with a redevelopment quantum of around $200 million,” he added.
The tender for Siglap Shopping Centre closes on 1 September.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email: email@example.com