SINGAPORE - Two freehold redevelopment sites located off Lavender Street are up for sale by public tender, with indicative pricing for 2 Cavan Road at $47.4 million and that for 21 Cavan Road at $12.6 million, joint marketing agents CBRE and HRL Properties said on Tuesday (March 19).
2 Cavan Road has a land area of about 20,100 square feet (sq ft) and houses a part-single-part-three-storey light industrial-cum-warehouse building, which is understood to have been built in the 1950s. If the property's existing building is conserved and incorporated into the proposed redevelopment, the development charge for this site will be $18.9 million.
The smaller of the two sites, 21 Cavan Road, which has a land area of 8,529 sq ft, is across the street. A four-storey light industrial building that was completed in 1975 sits on the site. A development charge of $15.5 million is payable for the redevelopment of this site.
After factoring in development charges, the guide price for each site works out to $1,100 per square foot per plot ratio. Both sites are zoned "residential with commercial at first storey" with a plot ratio of 3.0 under the Urban Redevelopment Authority's 2014 Master Plan.
The statement added that the current gross floor area of both buildings are underutilised, hence the buyer can consider maximising the gross floor area of 2 Cavan Road to about 60,301 sq ft, and that for 21 Cavan Road to 25,588 sq ft upon redevelopment.
New extensions within the conservation guidelines of up to a six-storey building height are permitted, subject to relevant authorities' approval. Relevant development charges will also be applicable. As both sites belong to the same owner, approval from the Strata Titles Board will not be required.
Low Choon Sin, manager, capital markets, CBRE said that keen interest from mid-sized developers and contractors are expected due to the "palatable quantum" as well as the potential to redevelop both sites into a boutique mixed-use development.
"Such mixed-use developments typically have a strong appeal to homebuyers due to the freehold tenure in a city fringe location. The short walking distance to both Bendemeer and Lavender MRT stations are strong plus factors," he added.