A Freehold commercial and residential building in the Orchard Road area is up for collective sale with offers expected to reach $420 million.
The 26-storey Thong Sia Building, which is on Bideford Road and opposite Paragon mall, has a land area of more than 21,000 sq ft. There are seven levels of commercial space and a 19-level residential tower of 37 apartments.
The building used to be occupied by watchmaker Seiko but most of the retailers have left.
The expected price of between $400 million and $420 million translates to about $2,559 to $2,687 per sq ft (psf) over the gross floor area of about 156,300 sq ft.
Sole marketing agent Jones Lang LaSalle Property Consultants (JLL) noted yesterday that if the Government allows the sale of an adjoining road that serves only Thong Sia Building, the price could go down to $2,414 to $2,532 psf.
Mr Karamjit Singh, international director at JLL, said owning a property in the Orchard Road district, “especially freehold, is a matter of great prestige, privilege and value”.
He cited a JLL study showing there are only 50 non-residential buildings directly on or off Orchard Road; 31 are freehold or 999-year leasehold while the rest have 99-year leases or less.
He added that effectively, there are “only nine or so potentially tradable freehold assets in and around Orchard Road”.
“From this perspective, it is clear that an opportunity to own the freehold Thong Sia Building is truly valuable,” said Mr Singh.
The tender closes at 2.30pm on Jan 28.