SINGAPORE (THE BUSINESS TIMES) - Verdun House in Farrer Park has been sold to Fragrance Group's chief executive James Koh for $55.1 million after he emerged as the highest bidder.
At this price, apartment owners will receive between $2.1 million and $2.8 million, while shop owners will receive between $5.7 million and $7.5 million, said property consultancy and investment sales specialist Delasa on Wednesday (Apr 27).
Built in the 1980s, the property currently comprises four shops and eateries on the ground level, and 12 apartments on the upper levels.
The owners of 15 out of the 16 strata-titled units have consented to the sale, pending approval from the Strata Titles Board.
They were seeking $55 million for the collective sale, Delasa said previously.
The development was relaunched for collective sale on March 23.
It was also launched for sale in March 2018, with a guide price of $60 million.
The final sale price of $55.1 million reflects $1,793 per sq ft on the potential commercial gross floor area of 30,727 sq ft.
The site has a land area of 7,300 sq ft, and is zoned for commercial use under the Urban Redevelopment Authority's 2019 Master Plan with a plot ratio of 4.2.
No development charge is payable upon its redevelopment to its potential gross plot ratio, Delasa said.
Delasa chief executive Karamjit Singh said the marketing exercise for Verdun House required a "differentiated approach" from most typical collective sales, which tend to be sold to property developers for their immediate redevelopment potential.
"While Verdun House may be redeveloped, it offered better prospects as a value-add proposition, which would see the investor sprucing up the building before refreshing the tenancies and income," he said, adding that interest garnered was mainly from long-term local property investors who know this space well.