Malaysia-listed developer Selangor Dredging is buying a freehold site in Serangoon Road from National Aerated Water Company for $47 million.
The plot at 1177 Serangoon Road has a two-storey art-deco-styled industrial building on the site.
National Aerated Water Company, which was known for its distributorship of soda pops such as Sinalco and Kickapoo Joy Juice, operated a bottled soft drinks factory there until operations ceased in the 1990s.
Selangor Dredging told Bursa Malaysia in a Wednesday filing that the acquisition was made via Tiara Land, a unit of Champsworth Development, which is a 50 per cent-owned associate company of its subsidiary SDB International.
Savills Singapore, the property's exclusive marketing agent, told The Straits Times that the tender attracted "healthy interest from both local and foreign developers".
Apart from the $47 million land cost, there would be an additional $22.66 million payable in estimated development charges to intensify land use from an industrial to residential purpose, Savills added.
The total outlay translates to $785 psf per plot ratio.
Selangor Dredging said the acquisition will be funded by a mix of "internally generated funds and/or bank borrowings by Tiara Land".
The site, which is along the Kallang River, has a land area of 31,705 sq ft and an allowable gross floor area of 88,775 sq ft based on a plot ratio of 2.8.
It could potentially yield 117 apartments averaging 70 sq m (about 754 sq ft) each, Savills added.
Selangor Dredging noted that the property is in the "prime District 12" and in an established city-fringe residential location, near commercial and recreational amenities.
Savills noted that the site is also near the Potong Pasir MRT station.
"In view of the strategic location of the property, Selangor Dredging is optimistic on the prospects of the proposed development to be undertaken on the land," it said in the stock exchange filing.
It added that the acquisition is subject to risks inherent in Singapore's property development industry, including adverse changes in real estate market prices, changes in demand and competition from other developers.