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Mon, September 21, 2020-11: 22 am
The COMMERCIAL Maxwell House building has been released for collective sale through a public tender, designated real estate consultant Cushman & Wakefield announced Monday.
Homeowners who own no less than 80 percent by strata area and share value have agreed to put the property on the market at a reserve price of S $ 295 million.
Located at 20 Maxwell Road, the 13-story property is built on a trapezoidal island plot with views from all four sides of the building.
The site encompasses an area of approximately 41,801 square feet (square feet), zoned for commercial use with a parcel ratio of 4.3 under the Urban Redevelopment Authority (URA) 2019 Master Plan.
Cushman & Wakefield said that URA, in advice given in January 2019, stated that it will support a mixed-use residential and commercial development with a 5.6 parcel ratio and gross area of approximately 234,086 square feet.
Subject to a successful rezoning, this will result in an increase in gross parcel ratio by 30%.
Maxwell House was built in 1971, and the site has a 99-year leasehold as of 1969.
The commercial quantity will not exceed 20 percent of the total gross area (GFA). Assuming that 80% of the total GFA is for residential use, while the remainder is for commercial use, the combined land fee is around S $ 1,691 per square foot per parcel ratio (psf ppr), after factor a 7% bonus balcony parcel ratio for the residential component plus the differential premium and an estimated lease improvement premium for the site, Cushman & Wakefield noted.
He added that the building’s allowable height has been increased to 75 meters above mean sea level, or roughly 21 stories high for the block of flats.
Subject to approval by authorities, the property may alternatively be remodeled for hotel use with a 5.6 parcel ratio, suggested Cushman & Wakefield.
This hotel option will increase the land rate to S $ 1,998 psf ppr, which also includes the differential premium and an estimated lease improvement premium, the property consultant added.
Situated in an area that primarily comprises retail properties, food and beverage outlets and offices, 20 Maxwell Road will be “one of the rare exceptional residential parcels” available on the market, Cushman & Wakefield said.
Christina Sim, director of capital markets for Cushman & Wakefield, said Maxwell House is likely to be “well received” given the dearth of residential development land in this part of the business and heritage district.
It will become one of the best “work-live-game” sites out there, as it is surrounded by a wealth of entertainment and outlets, according to Ms. Sim.
“To this is added the advantage of being in the central area, where it is not limited by the guideline on the maximum allowed number of units calculated based on an average size of 85 square meters per housing unit.
“Potential developers have the creative flexibility to build studio units or dual key units, subject to approval by the competent authority,” he added.
Maxwell House is located on the periphery of the central business district and is also close to the conservation shops in Tanjong Pagar and Chinatown.
On foot, it’s one minute from the Maxwell Food Center, four minutes from the Tanjong Pagar MRT station, eight minutes from the Chinatown MRT station, nine minutes from the Telok Ayer MRT station, and 10 minutes from the Outram Park MRT station.
The property will also be about a three-minute walk from the upcoming Maxwell MRT underground station, expected to be completed in 2022, along the Thomson East Coast Line.
Bidding for 20 Maxwell Road will close on November 12 at 3 pm.
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