Published October 30, 2012

About 49,000 sq ft at Delta House up for sale

Space made up of 2 strata units; Savills expects offers in the range of $1,100 psf

By kalpana rashiwala

[SINGAPORE] A total 49,053 sq ft of freehold strata industrial space at Delta House in the Alexandra /Delta Road vicinity has come on the market. The space comprises two strata units, one with about 36,308 sq ft occupying the entire fourth level of the eight-storey building and another unit of 12,745 sq ft on the third level.

The two units are owned by a group of high net-worth investors. Savills Singapore, which is marketing the space through an expression of interest exercise, said it anticipates offers in the range of $1,100 psf.

Based on a price of $1,100 psf, the lumpsum price works out to nearly $54 million.

Delta House was completed as an industrial building about 30 years ago, but under Urban Redevelopment Authority's current Master Plan 2008, the site is zoned for residential use with 2.1 plot ratio (ratio of maximum gross floor area to land area).

Delta House is on a site with land area of 88,537 sq ft and just about 200 metres from the upmarket Jervois Road residential belt.

A back of the envelope calculation shows that the site can be potentially redeveloped into a new condominium project with about 170 units of an average size of 1,000 sq ft.

"The residential zoning adds considerable additional value to the property.

The property offers potential for a collective sale in the medium term," said Craig Ward, senior director, capital markets at Savills.

"That said, the fundamentals of the property based on its existing industrial use, its prestigious location and ample carparking make it an exciting income- producing investment opportunity or suitable for an owner occupier," said Mr Ward.

Delta House has 82 surface carpark lots.

The space being offered is equivalent to strata share value of 20.7 per cent in Delta House. The space is currently vacant.

Urban Redevelopment Authority's All Industrial property price index has rise n 3 1.7 percent year-on-year in Q3 2012.