Verdun House for sale at S$55m reserve price

Housing shops, eateries and apartments, it is ripe for long-term hold: marketing agent

Aug 26, 2021


VERDUN House in Farrer Park has been put up for en bloc sale via tender with a reserve price of S$55 million, announced marketing agent Delasa (formerly known as Showsuite Consultancy) on Wednesday.

The four-storey freehold building stands at the corner of Verdun Road and Sam Leong Road, some 370 metres away from Farrer Park MRT station.

Spanning 7,300 square feet (sq ft), the site is zoned commercial with a gross plot ratio of 4.2 and an allowable height of up to six storeys. Its reserve price works out to S$1,790 per square foot on a potential commercial gross floor area of 30,727 sq ft.

Built in the 1980s, the development's ground level now hosts two shops and two eateries; the upper levels house apartments.

The site could be redeveloped into a retail-cum-office building, said Karamjit Singh, chief executive officer of Delasa.

"With the commercial zoning, foreigners and public-listed entities could acquire the entire building for long-term hold, even though the building comprises 12 apartments. Long-term investors could even choose to retain the building in its current form and defer their redevelopment plans. The current contracted rents deliver around 2 per cent per annum returns, which is reasonable for a freehold redevelopment site with no time pressure to rebuild," he added.

The mixed-use property is just a stone's throw from City Square Mall, Mustafa Centre, Park Hotel, Parkroyal on Kitchener Road hotel and Connexion, a high-rise integrated healthcare and hospitality complex.

"From a location perspective, Verdun House is set to benefit from the expanding commercial and medical tourism footprint around Farrer Park, and possibly spillover business arising from its proximity to Health City Novena," added Mr Singh.

Delasa said that owners of 93 per cent of the strata-titled units have consented to the sale.

The property was previously launched for sale in March 2018, with a S$60 million guide price.

The current tender closes at 2.30 pm this Friday.