A freehold mixed-use development in the prime Bukit Timah district has been put for sale at an asking price of $118 million. The building hosts the popular Atlas Coffeehouse, Hello Arigato cafe and homegrown co-living operator The Assembly Place.
The four-storey building sits on a plot at the junction of Bukit Timah Road and Duke Road, and it is zoned for Commercial & Residential use with a gross plot ratio of 3.0 under the Master Plan.
The property’s address is 551/551A/511B/551C/553 Bukit Timah Road and 6/6A/6B/6C/8/8A/8B Duke’s Road. The sale is exclusively marketed by Cushman & Wakefield, and the property will be sold in an Expression of Interest (EOI) exercise.
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The total area of the land for sale is 18,512 sq ft, which includes a neighbouring remnant State land which was acquired by the owner. The property is reportedly owned by Pacific Eagle Real Estate, the private real estate investment and development arm of Indonesian businessman Sukanto Tanoto.
The property was previously acquired by Hillcrest Investments in a $53.9 million collective sale in 2021. Hillcrest Investments is an affiliate of Pacific Eagle Real Estate.
The sale of the property has been positioned as a chance to redevelop the site and intensify the land use. It has received Written Permission to be redeveloped into a new five-storey building, comprising two-storeys with a mezzanine level for commercial use and the upper three-storeys with an attic for residential use.
The allowable commercial component would feature six strata commercial units that would be approved for F&B, while the residential component would comprise 30 units.
At the asking price of $118 million, the land rate works out to be approximately $2,193 psf per plot ratio (ppr), assuming the new development is built up to the maximum plot ratio of 3.0.
Shaun Poh, Executive Director of Capital Markets at Cushman & Wakefield, noted that the owner has already unlocked substantial value in the property by securing the adjacent remnant land, fully paying the land betterment charge for a plot ratio of 2.77, and obtaining written permission for redevelopment.
“With these transformative steps already in place, this rare freehold site offers purchasers a highly attractive ready-to-build mixed-use development opportunity, allowing them to accelerate redevelopment and sales in a prime District 10 address.”
The nearby Serene Centre at 10 Jalan Serene was sold for $105 million two years ago, which translates to $2,212 psf based on its existing gross floor area. Cushman & Wakefield was the marketing agent for this transaction.
The mixed-use development for sale is located in a prime residential neighbourhood, surrounded by prestigious Good Class Bungalow (GCB) areas, landed housing, and upmarket condominiums.
The development also benefits from proximity to Botanic Gardens MRT Interchange, which connects to the Circle Line and Downtown Line. The proximity to this MRT station, along with several stations and bus stops down the road, makes this location extremely accessible via public transport.
Nearby food and retail establishments include Adam Road Food Centre, Serene Centre, Cluny Court, and Coronation Plaza.
With condominiums and popular schools (Nanyang Primary School and Raffles Girls’ Primary School are both within 1km from the site) lining almost the entire Bukit Timah Road, F&B and co-living are natural choices for businesses looking to cater to residents, students and visitors.
“There is a dearth of new retail/F&B developments in the area. Transactions in older freehold strata developments, such as Coronation Shopping Plaza and Holland Road Shopping Centre, have consistently traded at $4,000 - $5,000 psf,” says Poh.
He adds that if the site is redeveloped, the new freehold strata retail and F&B units will offer incoming purchasers a unique opportunity to establish a presence in this highly sought-after area. Alternatively, investors may retain the property as an income generating asset while land-banking for future development potential.”
The EOI for the sale of this mixed-use development will close on May 5.
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