Raffles Education Square building on sale of $200 mil
The residential property stands at 51 Merchant Road in District 1 in Clarke Quay. The overall premise sits on a 27,669 sq ft plot with a gross flooring space of 71,111 sq ft plus two cellar carpark levels. Knight Frank states the real estate has a leasehold period for an unexpired term of 69 years from May 15, 1993.
” Quality commercial investments are tough ahead by as many are tightly supported by institutional players as well as unavailable for sale. Private assets also seeks commercial assets as this property class is untouched by the recent imposition of state cooling procedures.”
The original structure was constructed in 1996 and reconditioned in 2013 to house the business offices along with university campus of Raffles Education. The premise has actually been unused since the school and office were left, leading the way for the divestiture of the asset, adds Knight Frank.
” The real estate is strategically situated in a location with fantastic potential for an uplift in asset value from the resurgence of the Singapore River precinct,” states Chia Mein Mein, head of resources markets (land also cumulative sale), Knight Frank Singapore.
She adds: “This is a rare opportunity to acquire a business residential property that is set to gain from the significant urban renewal process that will certainly improve the area right into a brand-new and also dynamic way of life hub”.
According to Knight Frank, Raffles Education Square could possibly be redeveloped with the neighbouring The Riverside Piazza, a mixed-use strata commercial and also household development at 11 Keng Cheow Road. The firm claims that the owners of Riverside Piazza are securing the required 80% authorization to release a cumulative sale.
” This possibility might enable the mixed site to enjoy an uplift in gross flooring area to capitalise on the restoration campaigns for the location under the Urban Redevelopment Authority’s (URA) Strategic Development Incentive (SDI) system, subject to the authorities’ approval,” claims Chia.
Raffles Education Square, a four-storey business structure attached to two rows of preserved premises, has recently been put up for sale at a guide price of $200 million. The land price converts to about $2,660 psf per plot at a possible gross plot ratio of 2.8, including the land improvement cost. Knight Frank is the marketing representative.
The tender for the sale of Raffles Education Square will finalize on Aug 1.