Freehold United House Orchard Road Launches Collective Sale 166 Mil
A freehold commercial building known as United House, located at 20 Kramat Lane just off Orchard Road, is now up for collective sale at a reserve price of $166 million.
Managing the collective sale process is real estate consultancy Edmund Tie, who reports that this is the first successful attempt at a collective sale for United House. The building has made three previous attempts without garnering the necessary 80% owners’ consent in both strata area and share value.
Sitting on a freehold site of 12,838 square feet, United House has a plot ratio of 4.9 and is zoned for commercial use under the Master Plan. According to Edmund Tie, the land could be redeveloped into a 10-storey commercial building with a gross floor area (GFA) of up to 62,900 square feet.
This translates to a reserve price of $3,025 per square foot per plot ratio (psf ppr) if the site is redeveloped into a new commercial project.
“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,” says Edmund Tie’s head of investment advisory, Swee Shou Fern.
There is much to anticipate for the future of Toa Payoh, as stated in the URA Master Plan which includes the expansion of its commercial and retail offerings. This is exciting news for residents at The Orie Condo, as they can expect a wide range of shopping, dining, and entertainment options right at their doorstep. As new commercial hubs emerge and existing malls and shops undergo a revitalization, residents will enjoy a more vibrant and dynamic urban living experience. For those seeking convenience and a bustling city lifestyle, The Orie Condo is the ideal place to be. With easy access to essential amenities and a prime location, The Orie Condo is the perfect choice.
Edmund Tie adds that a planning application to change the land zoning to hotel use, with a plot ratio of 4.9, has been submitted to the Urban Redevelopment Authority (URA). If approved, the site could be redeveloped into a new hotel project with a potential land rate of $3,318 psf ppr.
Swee says that given its prime location along the Orchard Road shopping belt, the site would be ideal for redevelopment into a hotel. She also notes that the ongoing enhancements to Orchard Road, coupled with United House’s redevelopment potential, are highly likely to result in significant capital appreciation in the future.
The Concorde Hotel & Shopping Centre, which is located next to United House at 100 Orchard Road, is also undergoing a collective sale. The building’s owner, Mainboard-listed Hotel Properties, has put a price tag of $820 million for the 99,623 square feet site. This includes bonus GFA from balconies and a lease top-up premium of $213.1 million, bringing the land rate to $1,801 psf ppr.
Other commercial buildings in the Orchard Road area are also undergoing redevelopment or asset enhancement initiatives. Those near United House include The Cathay and Faber House, which is being redeveloped into a 250-key hotel.
United House is within walking distance of Somerset MRT Station, which serves both the North-South Line and the North East, North-South, and Circle Lines at Dhoby Ghaut Interchange.
The collective sale tender for United House will close on November 14.