Verdun House at Farrer Park up for sale with S$55 million reserve price

VERDUN House at Farrer Park has been put up for an en bloc sale via tender with a reserve price of S$55 million, announced marketing agent Delasa (formerly known as Showsuite Consultancy) on Wednesday.

The four-storey freehold building stands at the corner of Verdun Road and Sam Leong Road, some 370 metres away from Farrer Park MRT.

Spanning 7,300 square feet (sq ft), the site is zoned commercial with a gross plot ratio of 4.2 and an allowable height of up to six storeys. Its reserve price reflects S$1,790 per square foot on the potential commercial gross floor area of 30,727 sq ft.

Built in the 1980s, the development's ground level currently hosts two shops and two eateries, while the upper levels house apartments.

The site could be redeveloped into a retail-cum-office building, said Karamjit Singh, chief executive officer of Delasa.

"With the commercial zoning, foreigners and public-listed entities could acquire the entire building for long-term hold even though the building comprises 12 apartments. Long-term investors could even choose to retain the building in its current form and defer their redevelopment plans until later. The current contracted rents deliver around 2 per cent per annum returns, which is reasonable for a freehold redevelopment site with no time pressure to rebuild," he added.

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The mixed-use property is just a stone's throw away from City Square Mall, Mustafa Centre, Park Hotel, Parkroyal on Kitchener Hotel and Connexion, a high-rise integrated healthcare and hospitality complex.

"From a location's perspective, Verdun House is set to benefit from the expanding commercial and medical tourism footprint around Farrer Park, and possibly spill-over business arising from its proximity to Health City Novena," added Mr Singh.

According to Delasa, owners of 93 per cent of the strata-titled units have consented to the sale.

The same property was previously launched for sale in March 2018, along with a S$60 million guide price.

The current tender will close on Sep 27 at 2.30pm.