SINGAPORE - Serene Centre, a prime mixed-use development at the corner of Bukit Timah Road and Farrer Road, will be launched for sale via tender for the first time on Friday at a reserve price of $120 million.
Built in the 1980s, the freehold four-storey commercial/residential development in 10 Jalan Serene comprises 30 retail/F&B units, 10 apartment units and carpark facilities, and is owned by a single family owner, according to marketing agent Cushman & Wakefield.
Located near the Botanic Gardens MRT interchange station, Serene Centre sits on a 32,225 sq ft site area with gross floor area of 47,475 sq ft. Under the 2019 Master Plan, the site is zoned as "commercial/residential" and eligible for purchase by foreigners.
The tender will close at 3pm on Nov 14.
"This is an old asset and the seller doesn't want to put in more money to redevelop the property. They have also been receiving unsolicited offers from investors, and are therefore going through a competitive tender exercise to try to get the best offer," Mr Shaun Poh, executive director of capital markets at Cushman & Wakefield, told The Straits Times.
"Flanked by the nearby Cluny Hill/Park and Nassim Road good class bungalow clusters and the Botanic Gardens, we expect the asset's location and attributes will be appealing to developers and investors. The buyer can enjoy immediate rental income with a full occupancy and rental upside.
"Alternatively, investors can consider a full redevelopment of the property for strata sale or revamp it through an Asset Enhancement Initiative. For instance, the 10 apartments can be converted into serviced residence or a co-living concept, subject to approval," he added.
Meanwhile, the collective sale tender for Sultan Plaza, a 45-year-old commercial building, at a lower reserve price of $325 million, is expected to close on Oct 26, if the requisite 80 per cent mandate from owners for the lower price is obtained.
The 52,471 sq ft commercial-zoned site comprises 211 commercial units and 33 offices, totalling 244 strata lots.
"We just need one to two more units to cross the 80 per cent threshold, which will happen very soon," Mr Sieow Teak Hwa, managing director of marketing agent Teakhwa Real Estate, said on Wednesday.
Sultan Plaza relaunched in September at $325 million, after a previous tender at $360 million closed on June 28 with no buyers. Its first attempt to sell en bloc in 2019 was at $380 million.
At $325 million, owners of the shops stand to get between $147,000 and $41.8 million, while the office owners will get $560,000 to $1.85 million, Mr Sieow added.
The proposed reserve price will translate into a land rate of $1,545.80 psf plot per ratio (ppr), including estimated costs to buy the state land, the differential premium and the lease top-up premium. It will average down to $1,504.30 psf ppr after factoring in an 8 per cent bonus gross floor area (GFA).
The site can be redeveloped for mixed use, with the proposed commercial GFA to not exceed 40 per cent of total GFA.
Serviced apartments can be considered for residential use.
It can also be redeveloped into a 700-room hotel with shopping and commercial space.
There is no additional buyer's stamp duty payable for the commercial site.