Thong Sia Building, located near Singapore’s famed shopping street Orchard Road, was sold to private investment company SIN Capital Group for SGD 380 million, making it the largest ever mixed use collective sale in the country.
Thong Sia, a 26-storey building completed in 1981, has a land area of approximately 21,602 square feet, and comprises seven levels of commercial space and a 19-level residential tower of 37 apartments. The freehold building is located along Bideford Road, directly opposite The Paragon shopping mall.
The Urban Redevelopment Authority of Singapore has verified the existing Gross Floor Area (GFA) of the building to be in the region of 156,300 square feet, reflecting an equivalent Gross Potential Rent (GPR) of about 7.23. The price equates to $2,430 psf over the existing gross floor area.
“In response to an Outline Application, the planning authority has advised that they are prepared to support the redevelopment of the site into a mixed residential and commercial development with at least 60 per cent of the space set aside for residential or serviced apartments,” says Mr Karamjit Singh, International Director, JLL, who represented the owners.
The sale of Thong Sia Building makes it the second largest collective sale over the last seven years, after Serangoon Plaza, as well as the largest ever mixed-use collective sale in Singapore, according to Mr Singh. Serangoon Plaza, a fully commercial development, was sold for $400 million in 2013.
“While en bloc sales tend to take place when the market is on the uptrend, which is not the case now in particular for the residential market, there would still be takers for attractive and well-priced assets such as Thong Sia Building,” says Mr Singh.