Property
Published October 17, 2006
Kim Seng Plaza for sale
Commercial/residential site next to S'pore River could go for $128m
By UMA SHANKARI
KIM Seng Plaza, a freehold commercial and residential site on Kim Seng Road and next to the Singapore River, is up for collective sale by tender, and market observers said that the site should be able to fetch at least $128 million.
The 60,400 sq ft site, zoned for 'commercial/residential' use, has a 3.1 plot ratio, giving it a maximum floor area of 187,200 sq ft. The maximum building height is 35 storeys. Including an estimated development charge (DC) of about $14 million for a residential development, the price for any developer will work out to about $760 per sq ft per plot ratio (psf ppr).
However, the DC payable will depend on the mix of the development. For example, if the buyer intends to build a project that is 40 per cent commercial and 60 per cent residential, the DC payable will be substantially less and is estimated at about $6 million. The psf ppr price will, therefore, be a slightly lower $716.
In comparison, the Lippo Group bought an adjacent site for $739 psf ppr early this year from OCBC Bank and is expected to launch a condominium there at between $1,500 and $1,600 psf.
For the Kim Seng Plaza site, an upcoming development could house 95 apartments with an average size of 1,500 sq ft each and some 88 retail units with an average size of 300 sq ft each, said Jones Lang LaSalle (JLL), which is marketing the property.
'To capitalise on its central area location, the other viable redevelopment options include a luxurious condominium or small office home office (soho) units, subject to the relevant authorities' approval,' said JLL. 'The latter would appeal to those who prefer to work from home and live in a neighbourhood that offers a host of leisure, recreational and entertainment activities at their doorstep.'
Right now, the 18-storey Kim Seng Plaza comprises a 4-storey podium with shops located on the first and second storeys, a 28-lane bowling alley on the fourth storey and residential apartments from the 6th to 18th storeys in the tower block. Prominent developments such as Great World City and the Grand Copthorne Waterfront Hotel are located near Kim Seng Plaza. The tender will close at 3pm on Nov 15.
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