SINGAPORE - The Riverside Piazza near Clarke Quay will be put up for collective sale via tender at a reserve price of $198 million on Nov 5, marketing agent Colliers International announced on Monday (Nov 4).
The Riverside Piazza comprises 40 apartments and 24 commercial shops, with sizes ranging from 58 sq m to 333 sq m (624 sq ft to 3,584 sq ft). Depending on the size of their unit, each owner could stand to receive between $2.23 million and $9.47 million from the successful sale of the development.
The reserve price for the 99-year leasehold property works out to a land rate of S$2,606 per square foot per plot ratio (psf ppr), inclusive of the estimated differential premium to convert to hotel use, at the existing balance land tenure of about 72 years, Colliers said.
Located at 11 Keng Cheow Street, the site in prime District 1 spans 2,940 sq m.
Under the Urban Redevelopment Authority's Master Plan 2014, the site is zoned "commercial and residential" with a plot ratio of 2.8 and a maximum gross floor area of 8,260 sq m.
Following the submission of an outline application, URA has said it is supportive of alternative development options for the site, including hotel development.
Located on the fringe of the central business district (CBD) and near the Clarke Quay entertainment hub, as well as the Chinatown heritage district, the site is well-suited to be redeveloped into a signature hotel property, amid the "bright outlook for the tourism sector in Singapore and the region", said Colliers.
Tang Wei Leng, managing director at Colliers International, noted that prime development sites do not come up very often, especially near the Singapore River.
Said Ms Tang: "This site presents a unique opportunity to create a contemporary riverfront hotel in an area thriving with activity, buzzing nightlife, and rich history. We believe the excellent site attributes should appeal to developers who are looking to tap growing opportunities in the hospitality real estate sector."
Amenities in the vicinity include Fort Canning Country Club, Clarke Quay Central, Liang Court and Chinatown Point, among others.
The Riverside Piazza sits on a regular-shaped plot and offers dual frontage along Merchant Road and Keng Cheow Street. It is served by public transport near three MRT stations: Clarke Quay station on the North East Line (NEL); Fort Canning station on the Downtown Line (DTL); as well as Chinatown interchange station which connects the NEL and DTL.
Colliers added that the areas surrounding the site are being revitalised, starting with the nearby State Court Towers which is set to open in 2020.
"When completed, the State Court Towers will be the tallest government building in Singapore and will reportedly provide spaces for law firms, tech companies, academics, and students. This is expected to inject more buzz as businesses and the legal fraternity converge on the area," Colliers said.
Meanwhile, the Singapore River area has also been earmarked for further rejuvenation by the URA, with enhancements including better pedestrian connectivity.
Wendy Tan Siew Cheng, chairman of The Riverside Piazza collective sale committee, said: "This is our first attempt at collective sale and we are hopeful of garnering a positive response for the tender owing to the site's attractive location near the Singapore River, Chinatown, and the CBD. We believe the redevelopment of The Riverside Piazza could help to further transform the area, alongside ongoing placemaking efforts to revamp riverfront offerings."
Tender for The Riverside Piazza will close at 3pm on Dec 19.
Correction note: An earlier version of this story incorrectly stated that the reserve price for The Riverside Piazza works out to a land rate of S$2,602 psf ppr. Colliers has since corrected this figure to S$2,606 psf ppr.