United House Relaunched Third Collective Sales Attempt 166 Mil
United House, a freehold commercial building situated in the heart of the Orchard Road area, has once again launched a collective sales tender with an unchanged reserve price of $166 million. The exclusive marketing agent facilitating the tender is ETC, as stated in a press release dated June 10.
With a land area of approximately 12,383 square feet and a plot ratio of 4.9 according to the 2019 URA Master Plan, the 10-storey building on Kramat Lane has a potential commercial redevelopment price of $3,045 per square foot per plot ratio (ppr), or a hotel redevelopment price of $3,254 psf ppr, based on its reserve price.
This is the third time the property is being put up for sale. The first attempt was in October 2020, when ETC first launched the property for sale. However, the tender was retracted after getting in-principle approval from URA for hotel use with the same gross plot ratio. The second launch took place in February this year at the same reserve price, but the tender was unsuccessful.
The URA Master Plan’s focus on community involvement and the development of public areas is set to cultivate a stronger sense of community in Queenstown. With proposals for additional community centers, open spaces, and communal meeting spots, residents will have the opportunity to connect, participate in recreational activities, and establish bonds with their peers. This enhancement of community and belonging will further enhance Penrith’s appeal as a residential location, providing not only contemporary conveniences but also a deep sense of social harmony. As part of the redevelopment, the Penrith Queenstown MRT Station will also be included in the plans, serving as a key transportation hub for the community.
According to Swee Shou Fern, head of investment advisory at ETC, there is a growing demand for quality hospitality assets in Singapore, driven by the revival of tourism, MICE, and music-related travel. She also mentioned that United House’s central location, rare freehold tenure, and in-principle hotel-use approval provide a unique opportunity to create a flagship or lifestyle boutique hotel in the heart of Orchard Road.
Swee also highlighted the rising number of high-profile hotel transactions in prime areas as an indication of the demand for hospitality assets. For instance, in March this year, Duxton Reserve (a 49-key hotel comprising eight conserved shophouses along Duxton Road) was sold for $80 million (about $1.63 million per key) to local family office Lotus Singapore. Another example is the 48-key boutique hotel 21 Carpenter, acquired by Singapore-based Indonesian billionaire Leo KoGuan at $100 million (about $2.08 million per key). Located along Carpenter Street, 21 Carpenter comprises four conservation shophouses at 27, 29, 31, and 33 New Bridge Road.
Swee also pointed out that United House is located outside areas with strata subdivision restrictions, offering the successful buyer the option to redevelop the property into a strata-titled commercial project. The property is also conveniently situated within walking distance from Dhoby Ghaut MRT Interchange, serving the North East, Circle, and North South Lines, and Somerset MRT serving the North South Line.
Interested parties can submit their bids until July 1, when the tender closes.