Plots for education and for mixed-use project up for sale

The plot at Hillside Drive was formerly the premises of CHIJ St Joseph's Convent.
The plot at Hillside Drive was formerly the premises of CHIJ St Joseph's Convent.PHOTO: JLL AND CUSHMAN & WAKEFIELD

A Serangoon site used for education and one in East Coast for mixed-use development were put on the market yesterday.

The plot at 11 Hillside Drive, Serangoon, was formerly the premises of CHIJ St Joseph's Convent and then used as a training school for foreign domestic workers. It is now tenanted to international school Hillside World Academy, which has about eight years left on its lease.

The property, which has a land area of 81,457 sq ft and gross floor area of 46,753 sq ft, is approved for education use and held under a 103-year leasehold tenure from 2012, said JLL and Cushman & Wakefield, the joint marketing agents.

"(It) has has been recently enhanced to provide updated teaching facilities... Well-located, long- leasehold sites of this nature are very rarely available for sale," they added.

"We expect very strong interest from educational operators and investors who are looking to enter the Singapore market, or established groups looking to expand their presence and offering in Singapore."

The owners are expecting upwards of $70 million for the property, with expected yield to be about 4 per cent. A buyer could further maximise the asset's potential as it has an approved plot ratio of 0.8.

The site is zoned for residential use under the 2014 Master Plan, which means it could be redeveloped as residential in the future.

The other site on sale is Lodge 77, a freehold, three-storey residential development in Upper East Coast Road that houses two food and beverage outlets and a clinic on the first storey. It has a land area of 13,123 sq ft and a gross plot ratio of 3.0.

The plot, which is zoned for use as residential with commercial on the first floor, can be redeveloped into a four-storey mixed-use development, said sole marketing agent Knight Frank.

The seller expects offers of above $34.2 million, which means a land rate of about $1,100 per square foot per plot ratio, including an estimated development charge of about $9 million. The acquisition will not require Strata Titles Board approval.

"We continue to see strong interest for redevelopment opportunities in the eastern part of Singapore. In the past two months, two redevelopment sites, at Sea Avenue and East Coast Avenue, were transacted," said Mr Ian Loh, executive director and head of investment and capital markets at Knight Frank. "We expect this property to also attract strong interest in view of its location and relatively affordable investment size."

Rennie Whang

A version of this article appeared in the print edition of The Straits Times on November 12, 2015, with the headline 'Plots for education and for mixed-use project up for sale'. Print Edition | Subscribe