Tai Wah Building at Killiney Road has found a buyer. Lucrum Capital, a private equity investment firm focused on real-estate primarily in the Asia-Pacific, has placed a top bid about S$84.89 million for the mixed-use development.
This is about 5% above its asking price of S$81 million. The price translates to about S$2,209 per sq ft per plot ratio.
Lucrum Capital plans to redevelop the property into a serviced apartment with commercial use on the first storey.
Completed in the mid-1980s, Tai Wah Building is a four-storey building comprising two shops and six apartments. It sits on a freehold plot with a land area of about 13,148 sq ft and is zoned for “residential with commercial at first storey” under the Master Plan 2014.
Subject to authorities’ approval, the site can be redeveloped up to its existing gross floor area of about 38,414 sq ft, exceeding the permissible plot ratio of 2.8 as indicated in the master plan.
The application for a serviced apartment with commercial use on the first storey has received in-principle approval from the authorities.
Meanwhile, another mixed-use development launched on the same day as Tai Wah Building, Jalan Besar Plaza in Kallang, which also located on freehold land, has yet to confirm a buyer a week after its Nov 10 tender close date.
The matter under discussion was not the price, but rather the land use.
The developer has an option to incorporate a mix of residential, commercial and serviced residence use into the redeveloped buildings. The sales team was asking for S$390 million.
Adapted from: The Business Times, 17 November 2017