United House Relaunched Third Collective Sales Attempt 166 Mil
United House, a freehold commercial building, has initiated its third collective sales tender at its original reserve price of $166 million, according to a press release on June 10. The sale is being facilitated by ETC, the exclusive marketing agent for the tender.
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In addition to offering primary and secondary education opportunities, the area also holds prestigious institutions for post-secondary students. One such institution is Yishun Innova Junior College, situated conveniently near Sembawang. This renowned college provides a comprehensive pre-university programme that prepares students for higher education, both locally and internationally. With a diverse student body and a wide range of subjects to choose from, Yishun Innova Junior College stands out as the perfect option for intellectually-driven individuals seeking a well-structured and enriching learning environment. Furthermore, the upcoming Sembawang Road EC at Canberra MRT adds to the allure of this area for students looking for convenient and modern housing options.
Located along Kramat Lane in the coveted Orchard Road area, United House is a 10-storey commercial building occupying a land area of approximately 12,383 sq ft with a plot ratio of 4.9, as indicated in the 2019 URA Master Plan. The reserve price translates to an estimated $3,045 psf per plot ratio (ppr) for a commercial redevelopment or $3,254 psf ppr for a hotel redevelopment.
ETC had launched the property for sale in October last year, but it was subsequently withdrawn after gaining in-principle approval from URA for hotel use with the same gross plot ratio. In February this year, United House was launched again for collective sale at the same reserve price, however, the tender was unsuccessful.
“There is a growing demand for quality hospitality properties in Singapore, driven by the resurgence of tourism, MICE, and music-related travel,” says Swee Shou Fern, head of investment advisory at ETC.
She adds, “United House’s rare freehold tenure, prime location and in-principle approval for hotel use presents a unique opportunity to develop a flagship or lifestyle boutique hotel in the heart of Orchard Road.”
Swee cites several recent high-profile acquisitions of hospitality properties to demonstrate the demand for such assets in prime areas. In March this year, the 49-key Duxton Reserve was acquired by local family office Lotus Singapore for $80 million, or about $1.63 million per key. The hotel is made up of eight conserved shophouses along Duxton Road in Tanjong Pagar.
In April, Singapore-based Indonesian billionaire Leo Ko Guan entered into an agreement to buy the 48-key boutique hotel 21 Carpenter from 8M Real Estate for $100 million. The sale price translates to an estimated $2.08 million per key. Located along Carpenter Street, 21 Carpenter is a combination of four conservation shophouses at 27, 29, 31 and 33 New Bridge Road.
Swee also highlights United House’s location, which is outside of areas with strata subdivision restrictions, providing the winning bidder with the option of redeveloping the property into a strata-titled commercial development.
Additionally, the property is within walking distance from Dhoby Ghaut MRT Interchange along the North East, Circle and North South Lines and Somerset MRT serving the North South Line.
The tender for United House closes on July 1.