A $50 million industrial building on Ubi Avenue 4 is on the market

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Watten House Bukit Timah

A five-storey industrial structure located at the 152nd floor of Ubi Avenue 4 is up for sale at a price of $50 million as part of the expression of interest (EOI) exercise. It is located in the JTC light industrial plant is located on a total area of 49,187 square feet. It is leased under an agreement for a 30-year lease that came into effective from February 1st 1997. Thus, there are four years left on the lease, and the option of renewal to another thirty years.

Watten House Bukit Timah offers peaceful environment, strong transport connections, proximity to essential amenities and serenity of lifestyle

The property is an area gross floor (GFA) of 9549 sq ft with the building can reach 4.5m high ceiling. The building is equipped with high-end flooring that is suitable for a variety of industrial applications. The basement parking space is enough to accommodate 56 vehicles. In the new 2019 Master Plan, the site is designated to “Business 1” use, with an 2.0 plot-to-plot ratio. It has been approved for use in the internet-based commerce and information and communication technology (ICT) industry.

The owner invested $5 million on renovations to the property. The work was completed in the year 2000. The work included updating the reception area, lobby and lift landings, the put green offices and landscaping within the complex. Solar panels were installed on the exterior to improve the sustainability of the building and energy efficient.

The building is equipped with high-end specifications, central air conditioning as well as modern firefighting equipment as well as security equipment. Two passenger lifts as well as two cargo lifts service the building.

Because it’s an industrial B1 building and has a maximum of 40% of the area could be used for office space, according to Sammi Lim, the founder as executive director at Brilliance Capital, who is marketing the property solely.

Smart Innovations Global, a ICT and telecom distributor and service provider, is the owner of the property as per an property Title Search. The company was previously called Armorcoat Technologies.

The area has access through Kallang Paya Lebar Expressway, Pan Island Expressway, Central Expressway and East Coast Park Expressway. It’s about 15 minutes drive from downtown CBD and a 9-minute walking distance up to Ubi MRT Station on the Downtown Line. MacPherson or Tai Seng Stations are also in the area.

The EOI process for the building is due to close on the 23rd of August.

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Foreigners must obtain permission to purchase ‘Commercial & Residential’ sites, according to MinLaw, SLA

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Watten House Condo

The Ministry of Law (MinLaw) and Singapore Land Authority (SLA) announced on the 19th of July 2023 that the ‘commercial and residential zone will be taken off the listing of zones for land uses.

The reason is that the ‘Commercial and Residential’ sites are primarily residential purposes, these developments will now be classified in the category of residential property and will be governed by the Residential Property Act (RPA). “This will better reflect the intention in the RPA to ensure the security of homes for Singaporeans,” according to the news release of July 19.

Watten House Condo features a gross plot ratio of 1.4 and an average building height of five storeys

The changes came into in effect at midnight on the 20th of July 2023, every foreign buyer – either an individual or company – that wants to buy an interest in an area of land or property that is zoned for commercial and residential’ purposes would need to submit an application for an approval from the RPA in accordance with the press announcement.

Foreigners who own of property or property with this zones are not required to obtain permission under the RPA in the event that their intention is to preserve the property in its current condition. However, they must to obtain an approval from the RPA should they decide to keep the property and then redevelop it. property.

The use of residential properties is not typically permitted within these zones of land use.

Sites designated as commercial & Residential’ is designed for mixed commercial and residential developments. Based on URA’s interpretation of the Zoning, commercial use is restricted to forty% from the total allowed floor area, whereas the residential component must be at minimum 60%.

Examples of mixed-use development with residential and commercial zoning are Bukit Timah Plazaand Sherwood Towers, Katong Shopping Centre and Sixth Avenue Centre. The majority of these were built during the 1970s and 1980s, and attempt to negotiate a collective sale.

The owners of the strata-titled Bukit Timah Plazaand Sherwood Towers mixed-use developments are seeking an auction. In the Master Plan 2019, the site is designated for commercial and Residential’ uses with the gross plot ratio being 3.0. The mixed-use development comes with an agreement for 99 years from the year 1976.

Katong Shopping Centre completed its fourth collective sales attempt on the 10th of July at an estimated amount of $638 million. The price remains the same as the previous auction that was announced on April 18 before closing in May 19.

The site is located at the corner at the intersection of Mountbatten located on the corner of Mountbatten Haig Road, Katong Shopping Centre is the benefit of a freehold site with 86,924 square feet. In the Master Plan 2019, Katong Shopping Centre is designated for residential and commercial usage at an average percentage of 3.0.

As per Edmund Tie, the marketing agent of Katong Shopping Centre, the site can be transformed to become an integrated development with the current area ratio of 3.223 and the possibility to convert the residence portion into serviced apartments subject to approval from authorities.

Sixth Avenue Centre is a freehold mixed-use site located at 805 Bukit Timah Road, was last launched for sale by tender in April 19th, 2022 by a marketing agents Cushman & Wakefield. Its reserve value was set at $85 million.

The building was completed in the mid-1980s. Sixth Avenue Centre comprises seven shops and 18 apartments. It’s located on an impressive corner area of 15,009 square feet located at the intersection between Bukit Timah Road, and Sixth Avenue. It is just three minutes of walking distance to Sixth Avenue MRT Station on the Downtown Line.

Zoned Commercial & Residential’ and with an average plot-to-plot ratio of 3.0 in the URA Master Plan 2019, the site has an area of gross floor of 45,028 square feet. As much as forty% of the floor space has to be devoted to commercial use, and the remaining 60% to be used for residential purposes.

Tan Hong Boon, executive director of capital markets at JLL believes that any impact on the market will be minor on collective sale sites that have “Residential & Commercial’ zoning. “Foreign developers who buy these collective sale sites to redevelop will require a second step to obtain permission,” says Tan. “It will be the same as applying for approval to purchase the residence collective sales site within the Qualifying Certificate (QC) scheme.”

Under the QC program, developers have to complete the residential development within five years and then sell out all apartments within 2 years after completion. In the event that they fail to do this, they will result in extension fees which are based on 8% or 16% as well as the 24% of the cost of purchasing land for the third, second and the first year according to. Extension charges are pro-rated in accordance with the amount of units that remain unsold.

As per Alan Cheong, executive director of research & consulting for research and consultancy at Savills Singapore, the properties that are most likely be affected are the conservancy shops and smaller mixed-use developments with commercial & Residential zone. Investors from abroad are abstaining from purchasing such properties because they must pay an additional buyer’s stamp tax (ABSD) for the residential part that has doubled between thirty% up to 60% on April 27 2023.

“So foreign currency is going to be sucked into commercially zoned shops and retail and commercial space that is strata-titled,” adds Cheong. Foreigners who own such shops are required to obtain approval for the addition of an extension at the rear. Anyone who owns an mixed-use property and want to renovate it should apply for approval.

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2Q2023 real estate investment sales fell 50.7% year on year to $3.29 billion

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Watten House

Investment sales in real estate fell 50.7% q-o-q to $3.29 billion in the 2Q2023 according to research conducted done by Savills Singapore. The decline was triggered by a decline in both commercial and residential segments and the residential segment being hit by an 9.8% q-o-q fall in investment sales, which amounted to $1.56 billion and commercial investment sales plummeted 77.9% q-o-q to $940.7 million.

Watten House was recently purchased for an astonishing $550.8 million, a whopping 10% above its initial asking price, highlighting its enormous potential in its outstanding location.

However, the industrial segment saw an increase in investment sales during the quarter, increasing 14.6% q-o-q to reach $791.2 million. Notable deals include the sale of six industrial assets that were not core located in Singapore from ESR-LOGOS Reit $327.3 million.

In the residential sector, Savills attributes the fall in the value of transactions to a variety of reasons, such as the shifting habits of ultra high net worth (UHNWI) as well as family offices, and developers who are prudent in purchasing properties through as well as GLS and private collective sales markets. Government Land Sales (GLS) Program as well as the private market for collective sales.

However, residential transactions comprised the majority of investment transactions during 2Q2023, accounting for 48.3% of the investment volume.

In the commercial sector, Savills highlights that sales of shophouses grew in 2Q2023, increasing 43.1% q-o-q to reach $390.3 million in sales. The total number of shophouse deals were recorded in the quarter, compared to 10 deals recorded in 1Q2023.

The firm says that the sales of strata offices have remained steady with $298.5 million recorded in transactions in the last quarter, across eight deals. This includes the total sales on levels 10, 14 of Solitaire in Cecil to companies that are part of The Thye Hua Kwan (THK) Group of Charities. The transaction was valued at $103.2 million, or $4140 per sq ft according to the area of strata.

Shophouses and strata offices in 2Q2023 were driven mainly in part by UHNWI or family office purchasers. Savills says that the recent increase in additional buyer’s stamp tax (ABSD) that foreigners are required to pay up to 60% might have diverted investor attention from residential properties to commercial properties.

Alan Cheong, executive director of Savills Research and Consultancy, believes that the conservation shophouses and strata offices will be able to continue to record an impressive amount of transactions due to growing demand from UHNWIs and family offices. However, Cheong notes that such buyers tend to not abide by lodging requirements, which makes it difficult to have an accurate picture of the amount of demand.

Marcus Loo, CEO of Savills Singapore notes that while the rising interest rates have affected the market for investment sales for high-end items, it remains strong for smaller-sized deals. “The current low interest rate environment continues to stifle demand from institutions and investors are naturally more cautious when looking at larger sites. As long as there is no confirmation that interest rates are at their highest in the near future, we expect that investment sales will be limited mostly to shophouses, Strata-titled offices, and government land sales,” he remarks.

Savills has maintained its full-year projection for Singapore real residential investment sales, which is about $24.7 billion.

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The freehold retail podium at 183 Longhaus is for sale for $35.1 million

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Watten House Bukit Timah

The retail platform located at The retail platform at Longhaus, a mixed-use freehold development located on Upper Thomson Road is available to auction via the expression of interest (EOI) procedure. The development comprises 10 shops and F&B units, which cover an area of 11,291 sq feet the property has an estimated value of $35.1 million, or $3,109 square feet, according to the marketing firm Knight Frank Singapore.

318 Longhaus is an eight-storey development developed from Amcorp Global (formerly Tee Land) which is scheduled to be completed on July of 2019. It features a retail platform as in addition to 40 apartments on the second and fourth floors. In March of this the year Amcorp Global had placed the podium for retail for sale via the EOI with a price guide that was $35 million ($3,366 per square foot).

Watten House Bukit Timah stands out for its spacious units, unparalleled location, and a variety of amenities tailored to fulfill the daily needs of its inhabitants.

The retail podium consists of the ground and basement floors of the building and has an expansive frontage of around 50m, facing Upper Thomson Road. Tenants currently include eateries SOD Cafe, Kow King of Wagyui and Woodlands Sourdough as well as fitness franchise F45 Training.

“The listing offers an opportunity for investors to purchase the sole freehold retail podium that is available within a mixed-use project in District 20,” says Tania Ong, senior manager for Capital markets (land and construction internationally real estate) at Knight Frank Singapore. Ong also explains that commercial units comprise the total of 27.9% of the development’s share price, which means the purchaser will receive the majority of the veto rights in the block.

Daniel Ding, Knight Frank Singapore’s managing director for Capital Markets (land and construction International real estate) anticipates a high level of attention to the property noting that the demand for retail units in strata remains strong. “The current cooling initiatives targeted towards residential properties as well as the open borders that are prevalent throughout the Asia-Pacific region and the limited supply of quality retail assets will increase the demand for investors towards commercial properties.”

The EOI for the podium retail will be closed on August 31 at 3pm.

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Woollerton Drive bungalow on the market for $30.33 million

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Watten House Condo

A detached two-story bungalow located on four Woollerton Drive is being offered through tender, with a suggested cost at $30.33 million. This is roughly $3,796 per square foot, which is in relation to the area of around 7,991 square feet.

The two-storey detached home is located within the Gallop Road/ Woollerton Park The property is located in the Gallop Road/ Woollerton Park Class Bungalow (GCB) area. It’s located on the site that has an area of 24m frontage and 30m of depth. The elevated position of the property lets the house enjoy beautiful views of lush vegetation that surrounds the area, says the marketing agent Huttons. The home has an attic as well as a basement level, and an overall gross floor space of 11,000 square feet.

Watten House Condo is an exquisite property spans 220,241 square feet on a land designated residential by the Urban Redevelopment Authority.

4 Woollerton Drive first bought this site at the end of August in 2012 for $12.44 million ($1,571 per square foot). They chose to tear down the old structure and construct the new two-storey house which was completed in.

According to Huttons that the house was constructed at a price “exceeding the sum of $6 million” which was included in the design to accommodate several generations comfortably. It has large spaces for dining and living with seven bedrooms that have en suites with entertainment and family rooms and a wine cellar and a huge car porch in the basement.

Huttons’ Suzie Mok, who is the marketing director for the property she says that the house is ready for a potential buyer and requires only minor renovations. The house is likely to be a hot topic and explains that bungalows located in the Woollerton region are not often offered for sale. “These properties draw ever-rising interest from people with high net worth and also among newly minted citizens, and Singapore citizens looking to own and transfer an asset that will last forever,” she adds.

The bid of the 4 Woollerton Drive will close on August 18 at 3pm.

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Hotel investment in Asia Pacific slows in the first half of 2023

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Watten House

Based on a study published by JLL, Asia Pacific (Apac) hotel investment numbers decreased by 51% year-over-year in 1H2023, which was influenced by macroeconomic issues and the increasing price of credit. “Coming off a strong base in 2022 and despite a positive market conditions, hotel investment decreased by US$3.13 billion ($4.14 billion) in the 1H2023 period, compared to US$6.41 billion in the same period in 2017,” the report indicates.

Watten House an affluent condominium estate located within the picturesque and serene area of Bukit Timah.

In Singapore the hotel transactions were US$30 million in the first half of 2023 which is which is a 95% year-on-year drop. The deal to sell Parkroyal located on Kitchener Road for US$388 million which was made public by UOL earlier in the month is expected to boost the sector in the second quarter. The hotel, which is situated at Little India, was purchased by Midtown Properties, a unit of the Worldwide Hotels Group. JLL was the advisor on the sale.

In the remainder part of Apac, China also saw an increase in investment in hotels by an average of 76% year-on-year to 300 million dollars. Contrastingly, Japan sustained robust hotel investment, increasing 56% over the same period up to US$1.54 billion. In the same way, hotel investment within Australia as well as New Zealand rose, with numbers rising at 189% year-on-year to reach US$820 million.

“We have seen the effects of a constant gap between the booming demand for tourism as well as geopolitical and macroeconomic issues in the first quarter of 2023. This creates an in-between of the expectations of sellers regarding pricing and buyers access to capital” claims Nihat Ercan, CEO, Asia Pacific, JLL Hotels & Hospitality Group.

With these factors, JLL has revised its 2023 full-year forecast for Apac hotel investment by US$8.7 billion, which is down 24% from the initial 2023 projection.

Despite the tepid investment volume in 1H2023, the company states that the industry of hotels has seen “considerable improvements” in terms of trading performance, aided by the rising average daily rates in the hotels of the region and China’s opening in January of this year. “Approaching the year 2024 we are expecting to see opportunities emerging in certain locations across Apac and the Pacific region, where the prices have been reduced which allows those interested to rethink their options,” Ercan adds.

JLL has provided advice on two other significant hotel transactions in recent times. In July, JLL was advising Crystal Plaza Resorts on the sale of its Amari Havodda Maldives Resort in the Maldives to Thai tourism group Minor International Public and its financial partner, Abu Dhabi Fund Development. It was in June that JLL confirmed the conclusion of the first hotel portfolio in Southeast Asia to be sold for to be sold in 2023 – Pullman Jakarta Central Park and the Ibis Saigon South and Capri by Fraser both within Ho Chi Minh City – to a total value of US$106.1 million.

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