Selangor Dredging looks to sell conserved freehold building at guide price of S$18.9m

The property along Kallang River is fully approved for restaurant use on ground floor, office use on second floor

Aug 27, 2021



WITH Jui Residences recently sold out, Malaysian developer Selangor Dredging Berhad (SDB) is putting a conserved freehold commercial building, which is integrated with the residential development, up for sale at an indicative price tag of S$18.9 million.

SDB purchased the parcel of land along Serangoon Road from National Aerated Water Company in December 2016 for S$47 million, although there were additional development charges to intensify the land use from industrial to residential.

In December 2017, the Urban Redevelopment Authority announced that the main building of the former bottling factory would be partially conserved to salvage a piece of Kallang's industrial history, after the sale reportedly incited some concern among the heritage community that it may be torn down.

"As a boutique property developer with projects in Singapore and Malaysia, our main aim is to develop and sell the product," a spokesperson for SDB said, explaining its rationale for putting the commercial building up for sale. "By doing this, we are able to explore other opportunities and new developments along the way. We also do not intend on being (a) landlord at this point of time."

SDB has two other residential projects under construction in Singapore presently - One Draycott at Draycott Park and Myra in Potong Pasir.

Built in 1954, the factory used to house the National Aerated Water Co and was used to bottle popular soft drinks, such as Sinalco, Royal Crown Cola and Kickapoo Joy Juice. Since the sale of the defunct factory to SDB, it has been refurbished and is integrated with the 117-unit freehold Jui Residences, which was fully sold as of last month.

Residential units within the 18-storey tower in District 12 were sold at S$1,600 per square foot (psf) to about S$2,000 psf, the developer said. Jui Residences was soft-launched back in September 2018.

The indicative price of S$18.9 million for the commercial building works out to about S$2,883 psf based on the strata area of about 6,555 sq ft. The two-storey art deco-styled industrial building has a 30-metre-long main road frontage, and features a communal roof terrace (not part of the strata area) with views of the Kallang River. It also offers access to the park connectors along Kallang River.

The property is fully approved for restaurant use on the ground floor and office use on the second floor. It is being put up for sale as a whole, under one strata title, SDB said.

The sale is being conducted through an expression of interest exercise, which kicked off in mid August and will close on Sept 21 at 3pm.

Clemence Lee, senior director (capital markets) for the appointed marketing agent, CBRE, said: "Subject to approval from the relevant authorities, the successful buyer can explore multiple value-add opportunities to unlock further value of the asset. Some options include utilising the sizeable porch as an outdoor refreshment area, or converting the roof terrace into a rooftop cafe, which will appeal to the ready catchment of about 4,900 residential units in the immediate vicinity."

Mr Lee expects that a successful buyer could reap "strong capital appreciation" in the medium to long term, given the building's attributes which include a prime location, freehold tenure, approvals for F&B use on the ground floor, and proximity to two MRT stations. The property is situated 650 metres from Potong Pasir MRT station and 850 metres from Boon Keng MRT station.

Steven Ming, managing partner at Sakal Real Estate Partners, finds the indicative price tag palatable and suggested that the commercial building could potentially attract buyers such as high-net-worth individuals, family offices and boutique real estate funds.

With a location by the riverfront promenade and within walking distance of MRT stations, "the property will appeal to a certain group of occupiers," said Mr Ming. "It offers a different kind of dining experience, while the conservation status adds character."

Mr Ming expects that the F&B space could appeal to hipster restaurant and cafe concepts, while the office space could suit some occupiers seeking an alternative office experience. "There's a general emerging trend of people seeking decentralised office locations nearer (to) homes. This might tick those boxes," he added.