An opportunity for developers and investors to create an exclusive suburban project with hip retail, lifestyle and residential concepts in District 10
Cushman & Wakefield, a leading global real estate services firm has today announced that Sixth Avenue Centre, a ‘Commercial and Residential’ site located at 805 Bukit Timah Road will be launched for collective sale via tender on 9 November 2021.
The projected $18-$20 billion sales tally for 2021 is in light of the vaccine optimism and economic recovery post-COVID-19. The total investment volume in Q4 2020 came up to $3.33 billion, and the full-year 2020 investment tally stood at $23.7 billion.
Cushman & Wakefield, the exclusive agent for the collective sale, added that owners holding not less than 80% by share values and strata area have agreed to put the 40-year-old building up for en bloc sale for $85 million. The reserve price of $85 million translates to a land rate of $1,861 psf per plot ratio (psf ppr) inclusive of a nominal development charge payable to build up to plot ratio 3.0 and for the bonus balcony space.
An estate in perpetuity interest, Sixth Avenue Centre sits on a trapezoidal land plot with a site area of 1,394.4 sq m (approximately 15,009 sq ft). Zoned “Commercial & Residential” with a Gross Plot Ratio of 3.0 under the Urban Redevelopment Authority (URA) Master Plan 2019, it has a maximum allowable Gross Floor Area (GFA) of 4,183.20 sq m (approximately 45,028 sq ft) - up to 40% of the total GFA is allowed for commercial use and the remaining 60% to be used for residential purpose.
The URA in an Outline Application in 2018 had given approval for the residential portion to be retained as serviced residences. Additionally, it also requires the future developer to amalgamate a small portion of remnant land at the splayed corner junction. This extra state land, spanning an estimated 85 sqm, is expected to reduce the average land cost even lower to $1,788 psf ppr on the overall site.
Located at the bustling junction of Sixth Avenue and Bukit Timah Road, Sixth Avenue Centre is a mixed-use building comprising a total of 7 retail shops and 18 residential units. It has a prominent frontage to Bukit Timah Road. Developers can capitalize on building a new retail and residential concept befitting of its upcoming new neighbours at Royal Green and Fourth Avenue Residences. The proximity to the Sixth Avenue MRT Station (Downtown Line) - which is just a 3-minute walk away - is also a huge boon to the development and connects the locale from Newton to Cashew.
Christina Sim, Director of Capital Markets at Cushman & Wakefield, said, “Sixth Avenue Centre presents a compelling opportunity for developers and investors to build and own an exclusive suburban boutique project with guaranteed robust demand for hip retail, lifestyle and residential concepts. Located within the affluent suburbia precincts of District 10, coupled with a young population and high purchasing power, Sixth Avenue Centre will certainly be a prominent landmark and a limited edition offering.”
The collective sale tender will close at 3 pm on Thursday, 6 January 2022.