Owners holding not less than 80 per cent by strata area and share value have agreed to put the property on the market at a reserve price of $295 million, property consultant for the sale Cushman & Wakefield said on Monday (Sept 21).
Located at 20 Maxwell Road, the 13-storey building comprises mainly of offices. It sits on a trapezoidal island land parcel with views from all four sides of the building.
The site covers a land area of about 41,801 sq ft, zoned for commercial use with a plot ratio of 4.3 under the Urban Redevelopment Authority’s (URA) Master Plan 2019.
But Cushman & Wakefield said that URA had said in advice given in January 2019 that it will support a mixed-use commercial and residential development with a 30 per cent higher plot ratio of 5.6, and a gross floor area (GFA) of 234,086 sq ft. This is subject to a successful rezoning. Another caveat is that the commercial quantum if the new development must not exceed 20 per cent of the total GFA.
The allowable building height has also been increased to about 21 storeys for the tower block.
Assuming 80 per cent of the total GFA is for residential use and the remaining 20 per cent for commercial use, the blended land rate works out to approximately $1,691 per sq ft per plot ratio, after factoring in a 7 per cent bonus balcony plot ratio and differential premium and estimated lease upgrading premium for the site.
Cushman & Wakefield also said that the Maxwell House site could possibly be redeveloped for a hotel, with a plot ratio of 5.6, subject to approval from the relevant authorities. The hotel option would increase the land rate to $1,998 per sq ft per plot ratio, also inclusive of the differential premium and estimated lease upgrading premium.
Maxwell House sits at the fringe of the Central Business District, but is also near the conservation shophouse enclaves of Tanjong Pagar and Chinatown. It is within a few minutes’ walking distance to Maxwell Food Centre and the Tanjong Pagar and Chinatown MRT stations. The upcoming underground Maxwell MRT station along the Thomson East Coast Line is expected to be completed in 2022.
Given that it is located in an area comprising mainly shops, food and beverage outlets and offices, the Maxwell House site will be “one of the rare exceptional residential plots” available on the market, Cushman & Wakefield said.
Ms Christina Sim, director of capital markets at Cushman & Wakefield, said: “Maxwell House is expected to be well received as there is a dearth of residential development land in this part of the business and heritage district. With the surrounding neighbourhood filled with a plethora of entertainment and retail outlets plus a smorgasbord offering of much-loved Singaporean food, it will be one of the best ‘work-live-play’ sites to be made available.”
The property also has the advantage of being in the central area where it is not constrained by the guideline on the maximum allowable number of units calculated based on an average size of 85 sq m per dwelling unit, she added..
This means potential developers have the creative flexibility of building studio units or dual key units, subject to approval, she said.
The public tender for the site will close on Nov 12 at 3pm.