Thong Sia Building up for sale, owners expect at least S$400m

Thong Sia Building, a 26-storey residential and commercial building off Orchard Road, has been put up for sale with the owners expecting between S$400 million and S$420 million.

The building, located along Bideford Road near the Paragon shopping mall, sits on a freehold site with a land area of around 21,602 square feet. The building currently comprises seven levels of commercial space and a 19-level residential tower of 37 apartments.

Jones Lang LaSalle (JLL), which is marketing the property, on Wednesday (Dec 10) said the asking price works out to S$2,559 to S$2,687 psf. If the Government allows the sale of an adjoining road that just serves Thong Sia Building, the price goes down to S$2,414 to S$2,532 psf. More than 80 per cent of the owners of Thong Sia Building – measured both by share value as well as strata floor area – have consented to the collective sale, JLL added.

Thong Sia Building has a gross floor area of around 156,300 square feet, which translates to a gross plot ratio (GPR) of about 7.236. This is above the GPR of 4.9 plus under the Urban Redevelopment Authority’s 2014 Master Plan.

Karamjit Singh, International Director at JLL, said potential buyers could convert part of the commercial space to medical suites to capitalise on the site’s proximity to Mount Elizabeth Hospital. They could also consider converting the residences to serviced apartments.

“With 100 per cent control over the asset, the purchaser is also free to change the name of the building, which is great for branding purposes,” he added.

The tender exercise for Thong Sia Building closes on Jan 28, 2015.

Source : Channel NewsAsia – 10 Dec 2014

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