Maxwell House up for en bloc sale for $295 mil

Maxwell House sits on a 3,883.45 sq m (41,801 sq ft) trapezoidal island plot that is zoned “Commercial” under the 2019 URA Master Plan with a plot ratio of 4.3. Photo: Cushman and Wakefield

Maxwell House, a 13-storey commercial building at No. 20 Maxwell Road, has been put up for collective sale via public tender with a reserve price of $295 million.

This comes after the owners holding not less than 80% by share values and strata area have consented to the en bloc sale of the property, revealed Cushman & Wakefield.

Maxwell House sits on a 3,883.45 sq m (41,801 sq ft) trapezoidal island plot that is zoned “Commercial” under the 2019 URA Master Plan with a plot ratio of 4.3.

In a January 2019 advice, the URA stated that it will support a mixed-use “Commercial & Residential” development on the site, with a gross floor area (GFA) of 21,747.32 sq m (234,086 sq ft) and plot ratio of 5.6.

This results in a 30% uplift of the plot ratio, subject to a successful rezoning. The allowable building height was also raised to about 21 storeys for the tower block or 75 above mean sea level.

“Assuming 80% of the total GFA is for residential use and the remaining 20% GFA for commercial use, the blended land rate works out to approximately $1,691 per sq ft per plot ratio (psf ppr), after factoring the 7% bonus balcony plot ratio for the residential component plus the differential premium and an estimated lease upgrading premium for the site,” said Cushman & Wakefield.

Another possible development alternative for the site is ‘Hotel’ with a plot ratio of 5.6 also, subject to the relevant authorities’ approval. This option would raise the land rate to $1,998 psf ppr, inclusive of the differential premium as well as the estimate lease upgrading premium.

“Maxwell House is expected to be well received as there is a dearth of residential development land in this part of the business and heritage district. With the surrounding neighbourhood filled with a plethora of entertainment and retail outlets plus a smorgasbord offering of much-loved Singaporean food, it will be one of the best ‘work-live-play’ sites to be made available,” said Christina Sim, Director of Capital Markets at Cushman & Wakefield.

Located at the fringe of Central Business District, the site will benefit from the connectivity offered by the upcoming Maxwell MRT Station that is part of the Thomson-East Coast Line which is set for completion in 2022.

The tender for 20 Maxwell Road closes on 12 November.

Source: CommercialGuru, 21 Sep 2020