GB Point, a 99-year leasehold commercial building at 535 Kallang Bahru, is on sale for $55 million. The entire three-storey commercial property sits on a 22,283 sq ft site that faces the main road.
The sale is more than a straightforward ownership of a commercial asset, it also opens the opportunity to redevelop the site into a new commercial building that nearly doubles the existing gross floor area (GFA).
The 99-year leasehold site is zoned for commercial use with a gross plot ratio of 3.0 under the Master Plan. The land tenure started in 1975, with about 48 years left on its lease.
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However, the existing building has a GFA of 36,207 sq ft. The new owner could significantly unlock greater value by redeveloping the site into a new commercial building, to up the permissible GFA of 66,850 sq ft, subject to approvals.
GB Point is nearly fully leased to multiple tenants, including a restaurant, a fitness centre, service centres, and offices.
The guide price of $55 million translates to about $1,519 psf based on the existing GFA, or $823 psf based on the maximum allowable GFA. The sale of the property is jointly marketed by CBRE and Cushman & Wakefield, and the development will be sold in an expression of interest (EOI) exercise.
“535 Kallang Bahru represents a strategic investment play, combining stable in-place income with the potential to optimise and reposition the asset over time to benefit from the precinct’s ongoing transformation,” says Sophia Lim, director of capital markets, Singapore at Cushman & Wakefield.
The commercial building is located in the Geyland Bahru precinct within the city-fringe Kallang district. The development has a prominent position at the junction of Kallang Bahru and Geylang Bahru, and this dual street frontage provides exceptional visibility.
Moreover, the site is next to Geylang Bahru MRT station on the Downtown Line (DTL), and the area is served by two major expressways, the Pan-Island Expressway (PIE) and the Kallang-Paya Lebar Expressway (KPE).
Some of the areas around Kallang Bahru are also poised for redevelopment.
The closest is the future redevelopment of the former Kallang Basin Swimming Complex, which shut down last year. The site has since been zoned for residential use. Meanwhile, the vacant site of the former Victoria School at 3 Geylang Bahru Lane is also earmarked for future residential development.
The site is also close to Kampong Bugis, a riverfront plot next to the Kallang Riverside Park which will also see the development of new homes in the future. Stacked recently revisited this area, and you can read our article here.
Taken together, the site at 535 Kallang Bahru is a strategic location within proximity to established business clusters and of convenient reach to the city centre. “Thus, 535 Kallang Bahru represents a versatile site offering significant upside potential through creative repositioning or a full-scale redevelopment,” says Joshua Giam, director of capital markets, Singapore at CBRE.
He adds that the site could be redeveloped to accommodate a variety of commercial uses, such as corporate headquarters, a medical centre, a commercial school, or a childcare centre.
The EOI for the sale of 535 Kallang Bahru will close on Wednesday, April 22.
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