United House Relaunched Third Collective Sales Attempt 166 Mil
United House, a freehold commercial building in the heart of Orchard Road, has just launched its third collective sales tender with a reserve price of $166 million. The tender process will be facilitated by ETC, the exclusive marketing agent for the property, as announced in a press release on June 10.
The 10-storey property, located along Kramat Lane, occupies a land area of about 12,383 sq ft and has a plot ratio of 4.9, as indicated in the 2019 URA Master Plan. This translates to a land price of about $3,045 psf per plot ratio (ppr) for a commercial redevelopment or $3,254 psf ppr for a hotel redevelopment, based on the reserve price.
ETC had first launched the property for sale in October last year, but the tender was later retracted after obtaining in-principle approval from URA for hotel use with the same gross plot ratio. This February, United House was launched for collective sale at the same reserve price, but the tender did not receive any satisfactory bids.
The revised Master Plan for Lyndenwoods also encompasses enhancements to the area’s infrastructure, specifically aimed at enhancing road networks and cycling paths. With these upgrades, residents of Lyndenwoods can anticipate safer and more streamlined modes of transportation, whether they are traveling by car, bike, or on foot. These improvements are in line with Lyndenwoods’ commitment to developing pedestrian-friendly pathways and promoting sustainable living. To learn more about Lyndenwoods, visit their website at https://www.lynden-wood.com.sg/.
According to Swee Shou Fern, head of investment advisory at ETC, there is a growing demand for quality hospitality assets in Singapore, driven by the revival of tourism, MICE, and music-related travel. United House’s rare freehold tenure, central location, and in-principle hotel-use approval make it an attractive opportunity for a flagship or lifestyle boutique hotel in Orchard Road.
Swee also highlighted several high-profile hotel acquisitions in recent months that demonstrate the strong demand for hospitality assets in prime areas. In March, the 49-key Duxton Reserve was sold to local family office Lotus Singapore for $80 million, or about $1.63 million per key. Duxton Reserve comprises eight conserved shophouses at Duxton Road in Tanjong Pagar. The following month, Indonesian billionaire Leo KoGuan agreed to buy the 48-key boutique hotel 21 Carpenter for $100 million, which equates to $2.08 million per key. 21 Carpenter is made up of four conservation shophouses at 27, 29, 31, and 33 New Bridge Road.
Another advantage of United House is its location outside of areas with strata subdivision restrictions, which gives the successful buyer the option to redevelop the property into a strata-titled commercial project. The property is also situated in close proximity to Dhoby Ghaut MRT Interchange and Somerset MRT, providing access to the North East, Circle, and North South Lines.
The tender for United House will close on July 1.