Its redevelopment may yield 10 storeys.
According to a release, Knight Frank Singapore announced the sale of 71 & 73 Oxley Rise, a mixed-use redevelopment site located at the fringe of Orchard Road’s shopping belt, to Oxley Rise Pte Ltd (a unit of Oxley Holdings Ltd) for $130 million.
The sale was brokered by Knight Frank Pte Ltd, the sole marketing agent for the property.
This is Knight Frank Singapore’s second successful investment deal in the prime Orchard Road vicinity in recent months. The first was Chateau Eliza (18 Mount Elizabeth), a residential collective sale site, which was sold for $92.2 million in September 2012, achieving the highest land rate of $1,743 psf per plot ratio (psf/pr) since Westwood Apartments was sold in late 2007.
71 & 73 Oxley Rise is strategically located at the fringe of Orchard Road’s premier shopping belt in prime District 9. The freehold site has a land area of 2,381.1 sq m (approx. 25,630 sq ft).
Under the 2008 Master Plan, the site is zoned “Commercial & Residential” with a Gross Plot Ratio (GPR) of 4.2+. The site has the potential to be redeveloped into a 10-storey development with a total Gross Floor Area of approximately 107,646 sq ft.
Under URA’s guidelines, a commercial quantum not exceeding 40% of the maximum allowable floor area is allowed in the development.
Currently on-site, is an existing 2-storey building being used by the Manasseh Meyer International School. Knight Frank Pte Ltd was appointed as the sole marketing agent by the Trustees to advise them on the divestment and sale of the asset.
Mr Ian Loh, Director & Head of Investment at Knight Frank, says “The successful sale price of $130 million translates to an equivalent land rate of approximately $1,453 psf per plot ratio (psf/pr) including an estimated development charge of approximately $26 million, assuming the developer proposes a mix of 60% residential and 40% commercial in the new development”.
“The appeal of the site lies in its strategic location just steps away from the Dhoby Ghaut MRT station as well as the flexibility in the residential and commercial mix. The site is ideal to be redeveloped into a unique residential development with retail shops on the lower levels that offers an array of amenities and dining options that blends in with the surroundings, or a mix of office units which synergises with the neighbouring Visioncrest,” says Mr Loh.
“Since the start of the global financial crisis, there has not been any successful sale of redevelopment sites in the prime Orchard Road area until recently. The only other redevelopment site that was transacted in the prime Orchard Road area since late 2007 was that of Chateau Eliza (18 Mount Elizabeth), a residential collective sale site which was sold for $92.2 million in September this year, also brokered by Knight Frank. These two recent sales in the Orchard Road vicinity would hopefully spur developers’ confidence level in the high-end market,” says Mr Loh.
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