Raffles Education Square building on sale of $200 mil
According to Knight Frank, Raffles Education Square could potentially be redeveloped with the neighbouring The Riverside Piazza, a mixed-use strata business as well as residential development at 11 Keng Cheow Road. The firm claims that the proprietors of Riverside Piazza are obtaining the required 80% approval to introduce a collective sale.
The property is located at 51 Merchant Road in District 1 in Clarke Quay. The entire facility remains on a 27,669 sq ft plot with a gross floor space of 71,111 sq ft and two basement carpark levels. Knight Frank claims the estate has a leasehold tenure for an unexpired term of 69 years from May 15, 1993.
The original structure was built in 1996 as well as restored in 2013 to house the company workplaces and even college campus of Raffles Education. The premise has been unused since the school and workplace were vacated, paving the way for the divestment of the asset, adds Knight Frank.
” Quality business properties are tough ahead by as lots of are securely supported by institutional players and unavailable for sale. Exclusive wealth additionally seeks commercial properties as this asset course is unaffected by the recent imposition of state cooling steps.”
The tender for the sale of Raffles Education Square will close on Aug 1.
Raffles Education Square, a four-storey commercial structure connected to two rows of saved premises, has recently been sold at a guide price of $200 million. The land cost equates to about $2,660 psf per plot at a prospective gross plot ratio of 2.8, consisting of the land betterment cost. Knight Frank is the marketing agent.
She includes: “This is an unusual possibility to get an industrial building that is set to profit from the significant urban renewal process that will improve the area into a brand-new and also dynamic lifestyle hub”.
” This possibility may enable the mixed area to enjoy an uplift in gross floor area to capitalise on the renewal campaigns for the area under the Urban Redevelopment Authority’s (URA) Strategic Development Incentive (SDI) plan, based on the authorities’ authorization,” claims Chia.
” The building is tactically located in a place with excellent potential for an uplift in investment market value from the resurgence of the Singapore River precinct,” says Chia Mein Mein, head of capital markets (land also cumulative sale), Knight Frank Singapore.