Set to cater to growing demand for space from international schools and co-living operations
Verdun House, an en bloc site located at the corner of Verdun Road and Sam Leong Road in Farrer Park, has been relaunched for sale by tender by property consultancy and investment sales specialists, Delasa.
Owners of 15 out of the 16 strata-titled units have consented to the sale, representing a mandate of 93% of the development.
Their reserve price of $55 million reflects $1,790 psf on the potential commercial use gross floor area of 30,727 sf. No development charge is payable upon its redevelopment up to its potential GPR of 4.2 Commercial use.
Located some 370 metres to Farrer Park MRT station, the property has a squarish and island plot configuration with a land area of 7,300 sqft. It is zoned ‘Commercial’ in the 2019 Master Plan with a plot ratio of 4.2. It currently comprises four shops and eateries on the ground level and 12 apartments at its upper levels. The development was built in the 1980s.
“With its central location and easy access to MRT, eateries and shopping, Verdun House could be well-suited for multiple business groups – such as a commercial school, co-living operations or a corporate office with showrooms or F&B on the ground level,” said Mr Karamjit Singh, CEO of Delasa. “The subject site may be redeveloped to a new 6-storey retail-cum-office building with a gross floor area of around 31,000 sf, subject to approval from the planning authorities. It would enjoy a prominent corner frontage which would be great for branding and signages.”
“Of late, we have been receiving increasing enquiries from international schools for space. Ideally, they would prefer premises with open grounds but the supply of such properties is extremely tight. Such schools are beginning to consider city campuses as a viable option provided it is well-served by public transport and amenities. As a commercial school building, Verdun House could potentially fit some 30 classrooms accommodating 700 to 800 students on three levels, whilst retaining the ground floor for F&B, subject to design and approvals. Schools would greatly benefit from the ease of accessibility and shopping convenience that this property offers,” added Mr Singh.
“Separately, we also see strong demand from investors keen to tie-up with co-living operators to manage the 12 existing apartments at the upper levels. With the commercial zoning, foreigners and public-listed entities could acquire the entire building for long-term hold even though the building comprises residential units. We expect investors to retain the building in its current form and refurbish the apartments catering to the strong rental market. In doing so, investors could look towards gross returns of about 3% per annum”.
The tender exercise is scheduled to close at 2.30 pm on Tuesday, 26 April 2022.