A 99-year leasehold six-storey industrial building that features a car showroom on the ground floor has been listed for $49 million. Located at 1 Chang Charn Road, the property, which is also known as OC Building, is reportedly being sold by local auto-finance dealer Orchard Credit Group.
However, there is about 31 years left on the land lease, which will impact any long-term plans for the next owner. The sale of OC Building will be conducted in an Expression of Interest (EOI) exercise by ETC, the marketing agent.
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The property sits on a 29,720 sq ft that is zoned for ‘Business 1’ use with a plot ratio of 2.5. The indicative guide price works out to a land rate of $599 psf on the existing gross floor area of 81,836 sq ft.
In addition to the car showroom on the ground floor, the rest of the building features a mix of media production spaces, warehousing and ancillary office uses.
The property is suitable for business owners, end-users, and investors. The building’s regular and spacious floor plates also provide flexibility to be reconfigured to accommodate a range of operational and business needs.
Located at the junction of Chang Charn Road and Hoy Fatt Road, the property enjoys a combined street frontage of 137m, and this offers tenants and owners a strong branding exposure. The area is known as one of Singapore’s most established automotive belts, housing premium showrooms and distributors.
“Standalone assets within the Leng Kee automotive cluster are tightly held and seldom available for sale,” says Swee Shou Fern, Head of Investment Advisory at ETC. She adds that the property would be a compelling opportunity for automotive players, lifestyle showroom operators and light industrial occupiers seeking strong visibility within a well-established commercial cluster.
Road connectivity in the area is supported by major arterial roads and expressways including Jalan Bukit Merah, Alexandra Road and the Ayer Rajah Expressway. With Redhill MRT station about 500m away, it is also easily accessible to a wide range of amenities including retail malls and food centres.
Past notable transactions in the Leng Kee area include Thye Hong Centre, which sold for $112.5 million in 2020. The 6-storey freehold industrial building was purchased by SLB Development, a Lian Beng subsidiary.
In 2019, two industrial properties at 3 Leng Kee Road and 19 Leng Kee Road were on the market for $15 million and $23 million, respectively.
The EOI for the sale of 1 Chang Charn Road will close on 6 May.
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