SINGAPORE – CBRE, with joint marketing agent HRL Properties, has launched two freehold redevelopment sites located at 2 and 21 Cavan Road, off Lavender Street, for sale by public tender.
2 Cavan Road has a land area of approximately 20,100 square feet and currently accommodates a part-single-part-three-storey light industrial-cum-warehouse building which is understood to have been built in the 1950s.
Located just across the street, 21 Cavan Road is a smaller site of 8,529 square feet currently occupied by a four-storey light industrial building that was completed in 1975.
Under the 2014 Master Plan, both sites are zoned “residential with commercial at 1st storey” with a plot ratio of 3.0.
As the current gross floor area of both buildings are under-utilised, the successful buyer can consider maximizing the gross floor area of 2 Cavan Road to approximately 60,301 square feet and 21 Cavan Road to 25,588 square feet upon redevelopment.
Subject to relevant authorities’ approval, new extensions within the conservation guidelines of up to a six-storey building height are permitted, of which relevant development charges will be applicable. The two development sites belong to a single owner, so approval from strata titles board will not be required.
Indicative pricing for 2 Cavan Road is S$47.4 million and that for 21 Cavan Road is S$12.6 million.
Assuming the existing building at 2 Cavan Road is conserved and incorporated into the proposed redevelopment, the development charge for this site will be S$18.9 million.
Meanwhile, a development charge of S$15.5 million is payable for the redevelopment of the smaller site at 21 Cavan Road.
After factoring in these development charges, the guide price for each site works out to S$1,100 per square foot per plot ratio.
Mr Low Choon Sin, Manager, Capital Markets, CBRE said, “We expect keen interest from midsized developers and contractors due to the palatable quantum as well as the potential to redevelop both sites into a boutique mixed-use development. Such mixed-use developments typically have a strong appeal to home buyers due to the freehold tenure in a city fringe location. The short walking distance to both Bendemeer and Lavender MRT stations are strong plus factors.”
In recent years, the Lavender/Jalan Besar area has undergone a transformation into a vibrant lifestyle location with high-rise residential and commercial developments sprouting up, offering a diverse range of entertainment, cultural and lifestyle attractions including hipster cafes and bars that attract high footfall and immediate catchment.
Prominent landmarks include the newly completed ARC 380, City Square Mall, Jalan Besar Sports Centre, City Square Residences and the upcoming Sturdee Residences.
The subject property is also well-connected to the key precincts in Singapore, such as the CBD which is only a 10-minute drive or train ride away.
Interested parties may submit bids for either one or both sites. The public tender exercise closes on 30 April 2019 at 3 pm.
This article is contributed by CBRE.