SINGAPORE - Property developer Oxley Holdings emerged as the most suitable candidate among more than 80 parties for the purchase of a 99-year leasehold plot owned by the Huang Shi Zong Hui Singapore (Huang Clan Association), the agent for the sale Edmund Tie & Company said on Thursday (Feb 8).
Edmund Tie also said that it had conducted in December 2014 an expression-of-interest exercise on the 2,219.6 sq m site, which has a plot ratio of 2.8, with the intention of seeking joint-venture proposals to redevelop the property.
This follows news on Monday that the property developer's wholly owned subsidiary Oxley Pearl purchased the plot - Lot 98849K of Mukim 24 - along Lorong 35 Geylang for S$13 million, with the intention of turning it into an eight-storey mixed-use development to be named Sixteen35 Residences.
The plot, which houses the clan association's headquarters, is zoned for residential/institution use under the Urban Redevelopment Authority's 2014 Master Plan.
Sixteen35 Residences will house the clan association's future 22,500 sq ft association premises on the second and third storeys.
It will have a range of facilities including a multi-purpose hall, a cultural and heritage exhibition room, a library, meeting rooms and an office, and will be transferred back to the association for use as its headquarters.
Oxley will inherit the apartment units for sale, which will be from the fourth to eighth storeys of Sixteen35 Residences. The development will have communal facilities, a swimming pool and a basement car park, Oxley added.
The consideration for the sale took into account current market prices of properties in the surrounding area and Oxley's assessment of the redevelopment potential of the land.
Association chairman Ng Poh Wah said that it has had the vision of having an upgraded headquarters for many years.
"We are proud to announce this milestone on behalf of all our members and are pleased to have brought on board a reputable developer to help us fulfil this dream," he said.
The association is temporarily moving its administrative office to York International Building at 10 Upper Aljunied Link. They are expected to move to their new premises in the first half of 2021.
Oxley shares were trading down S$0.005 or 0.8 per cent at S$0.635 as at 3.12pm on Thursday.
Separately, a site with a 60m frontage along Lorong 18 Geylang, near its intersection with Geylang Road, is up for sale by tender.
The property is offered for sale based on a 99-year leasehold tenure. It has a total site area of about 1,696.3 sq m and is located within an area that was rezoned in 2015 from "residential/institution" use to "commercial/institution" use under the URA Master Plan 2014.
At a gross plot ratio of 2.8, it can be redeveloped into an eight-storey development with a maximum allowable gross floor area of 4,749.6 sq m.
The property is held under single ownership.
"A development site of this size is rarely available as ownership of land plots in the Geylang area is mostly fragmented," said Ms Swee Shou Fern, senior director of investment advisory at Edmund Tie & Company (SEA), which is marketing the site.
The asking price for the property is $36 million, which reflects a land rate of $948 per square foot per plot ratio (ppr) for commercial use, or $704 ppr for institution use.
To redevelop the site for commercial use at a plot ratio of 2.8, an estimated development charge of $12.5 million is payable, said Edmund Tie in a statement. If the site is developed for institution use, no development charge is payable.
The tender closes on March 22.