http://www.businesstimes.com.sg/arch...-sale-20130611

Published June 11, 2013

RMG puts units in Thong Sia up for tender sale

Commercial podium space priced from $2,500 psf to over $6,000 psf

By Nisha Ramchandani


AFTER failing to get the necessary approvals to convert the commercial podium at Thong Sia Building into a medical centre, Raffles Medical Group (RMG) is offering the units for sale through a tender.

Located opposite the Paragon shopping and medical centre, Thong Sia Building is a freehold mixed-use commercial and residential property.

RMG is selling the commercial podium - consisting of eight strata-titled units which are located on levels one to seven - owned by its wholly-owned subsidiary Raffles Medical Management. The retail and office units range in size from 710 square feet to 8,826 square feet, and are being priced between $2,500 per square foot (psf) and up to over $6,000 psf.

This puts the units at $6.5 million to $35 million in price, according to Jones Lang LaSalle (JLL), which has been appointed the exclusive agent to handle the sale.

"This offering provides an opportunity to acquire freehold, retail and office strata units within the Orchard Road vicinity. As the strata units are being offered on a vacant possession basis, it allows investors the flexibility to sub-divide units and occupiers to immediately take possession for their own use," said Ashish Manchharam, JLL's regional director of investments.

He expects the lower floors to attract end-users who might potentially look at flagship stores, while the upper floors could cater to offices.

In March this year, RMG announced that its second submission to the Urban Redevelopment Authority for the change of use of the commercial podium at 30 Bideford Road to a medical centre was unsuccessful. RMG had said at the time that it was exploring various options with respect to the property. RMG had paid $92 million for the podium block in 2011.

"The site will benefit from the upcoming completion of several new residential developments such as The Laurels, Urban Suites and 111 Emerald Hill, and will be further enhanced on completion of a new serviced apartment and residential project in 2017 on the former Cairnhill Place site next door," added Mr Manchharam. "These developments will provide future catchment for a standalone retail centre, and also a flagship retail store."

The tender exercise ends at 3 pm on July 15.

Shares in RMG closed at $3.25 yesterday, unchanged.