CBRE is expecting "keen interest" from mid-sized developers and contractors for two freehold redevelopment sites launched for sale in Singapore.

Available via public tender, 2 and 21 Cavan Road  are zoned “residential with commercial at the 1st storey”.

The site at 2 Cavan Road comprises approximately 20,100 square feet and currently accommodates a part-single-part-three-storey light industrial-cum-warehouse building.

Sitting directly opposite, 21 Cavan Road is a smaller site of 8,529 square feet currently occupied by a four-storey light industrial building that was completed in 1975.

As the current gross floor area of both buildings are under-utilised, the successful buyer can consider maximising the gross floor area of 2 Cavan Road to approximately 60,301 square feet and 21 Cavan Road to 25,588 square feet upon redevelopment.

Subject to relevant authorities’ approval, new extensions within the conservation guidelines of up to a six-storey building height are permitted, of which relevant development charges will be applicable.

21 Cavan Road.  Source: CBRE

The two development sites belong to a single owner, meaning approval from strata titles board will not be required. 

According to CBRE, indicative pricing for 2 Cavan Road is S$47.4 million and that for 21 Cavan Road is S$12.6 million.

Assuming the existing building at 2 Cavan Road is conserved and incorporated into the proposed redevelopment, the development charge for this site will be S$18.9 million.

Meanwhile, a development charge of S$15.5 million is payable for the redevelopment of the smaller site at 21 Cavan Road.

After factoring in these development charges, the guide price for each site works out to S$1,100 per square foot per plot ratio.

Mr Low Choon Sin, Manager, Capital Markets, CBRE said both sites had potential for mixed-use developments.

“We expect keen interest from midsized developers and contractors due to the palatable quantum as well as the potential to redevelop both sites into a boutique mixed-use development," he said.

"Such mixed-use developments typically have a strong appeal to home buyers due to the freehold tenure in a city fringe location.

"The short walking distance to both Bendemeer and Lavender MRT stations are strong plus factors.”

The public tender exercise closes on 30 April 2019 at 3pm.

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