Freehold United House Orchard Road Launches Collective Sale 166 Mil
United House, a freehold commercial building situated at 20 Kramat Lane near Orchard Road, has recently been put up for collective sale with a reserve price of $166 million. The marketing and sale of this collective sale will be managed by property consultancy firm Edmund Tie, who says that this is the first successful launch for United House after three previous attempts that failed to secure the necessary 80% owners’ consent in both strata area and share value.
The site, which covers an area of 12,838 sq ft, has a plot ratio of 4.9 and is zoned for commercial use under the Master Plan. According to Edmund Tie, the site has the potential to be redeveloped into a 10-storey commercial building with a gross floor area (GFA) of up to 62,900 sq ft. At the reserve price of $166 million, this translates to a land rate of $3,025 per square foot per plot ratio (psf ppr) for a new commercial project.
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“United House falls outside of the areas where new strata subdivision of commercial space is restricted. The successful buyer has the flexibility to consider strata subdivision for the new development,” explains Swee Shou Fern, head of investment advisory at Edmund Tie.
The consultancy has also revealed that a planning application has been submitted to the Urban Redevelopment Authority (URA) to change the site’s land zoning to allow for hotel use, with a plot ratio of 4.9. If this application is approved and the site is redeveloped into a new hotel project, the land rate would increase to $3,318 psf ppr.
Swee adds, “Given its prime location along Orchard Road, the site is highly suitable for redevelopment into a hotel. With the ongoing enhancements to Orchard Road and the potential for redevelopment, we believe that United House has the potential for significant capital appreciation in the future.”
Adjacent to United House is the Concorde Hotel & Shopping Centre at 100 Orchard Road, which is also attempting a collective sale. The site has an area of 99,623 sq ft and is owned by mainboard-listed Hotel Properties. It has been priced at a whopping $820 million, which includes bonus GFA from balconies and a lease top-up premium of $213.1 million. When these costs are factored in, the land rate increases to $1,801 psf ppr.
Edmund Tie adds that there are also other buildings along Orchard Road that are undergoing redevelopment or asset enhancement initiatives, such as The Cathay and Faber House, which is being redeveloped into a 250-key hotel.
United House is conveniently located within walking distance of Somerset MRT Station on the North-South Line and Dhoby Ghaut Interchange which serves the North East, North-South and Circle Lines.
The collective sale tender for United House closes on November 14.