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Freehold site in Novena up for sale for S$26m


The 6,768 sq ft freehold site at 2 Derbyshire Road comes with an existing four-storey building and its gross floor area is about 8,742 sq ft

May 19, 2016


CBRE has launched an expression of interest (EOI) for the sale of a freehold site at 2 Derbyshire Road.

Nestled in Novena within an established residential enclave, the 6,768 sq ft site comes with an existing four-storey building and its current gross floor area is about 8,742 sq ft. The guide price is about S$26 million.

Located just off the main junction of Thomson Road, the site is zoned for "civic and community institution". It is served by various transport nodes with easy accessibility to town, and is within walking distance from Novena MRT station. The property is currently held by a Singaporean family and rented out to Nafa Arts Kindergarten.

CBRE director for investment properties Sammi Lim noted that the approval for use as a child care centre and kindergarten is considered a plus point for the site, and the current rental income will be attractive to an investor. The buyer can also explore further change of use of the property or the premise, subject to approval from the authorities.

"Buyers will also be attracted to the naming and signage rights for this property," Ms Lim said. "With the property being next to residential developments, there may be an opportunity to explore change of use to a residential zone plot for a boutique residential development."

Back in 2008, the owner was granted provisional permission from the Urban Redevelopment Authority for a proposed eight-storey flat comprising 14 residential units with a basement car park and a swimming pool, with an approved plot ratio of 2.423. But the owner decided not to proceed after receiving interest from the current tenant.

Ms Lim said she expects keen interest from high net worth individuals, private family funds, developers, and also owner-occupier buyers in the likes of associations, clubs, child care operators, performing academies and welfare homes operators, among others.

CBRE is the sole marketing agent for the EOI exercise, which closes on June 30.