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Maxwell House Up for Collective Sale at Reserve Price of $295 million

Christina Sim • 21/09/2020

maxwell-house

Maxwell House at No. 20 Maxwell Road is up for sale via a public tender. Cushman & Wakefield, the appointed property consultants for the collective sale has confirmed that owners holding not less than 80 per cent by strata area and share values have agreed to put the property to market at a reserve price of $295 million

Maxwell House is built on a trapezoidal island plot with views from all 4 sides of the building. It is currently a 13-storey commercial building and has a site area* of 3,883.45 sq m (41,801 sq ft approximately). Under the Master Plan 2019, the site is zoned “Commercial” of plot ratio 4.3.

According to Cushman & Wakefield, the URA had, in an advice given in January 2019, stated that they will support a mixed-use “Commercial & Residential” development of plot ratio of 5.6 with a gross floor area of 21,747.32 sq m (234,086 sq ft approximately). This results in an uplift of the plot ratio by some 30 per cent, subject to a successful rezoning. The commercial quantum shall not exceed 20 per cent of the total Gross Floor Area (GFA). The allowable building height has been increased to 75 Above Mean Sea Level or approximately 21 storeys high for the tower block.

Assuming 80 per cent of the total GFA is for residential use and the remaining 20 per cent GFA for commercial use, the blended land rate works out to approximately $1,691 psf per plot ratio, after factoring the seven per cent bonus balcony plot ratio for the residential component plus the differential premium and an estimated lease upgrading premium for the site.

Another possible development alternative is ‘Hotel’ which also has a plot ratio 5.6, subject to approval from the relevant authorities. The ‘Hotel’ option would increase the land rate to $1,998 psf per plot ratio, also inclusive of the differential premium and an estimated lease upgrading premium.

20 Maxwell Road will be one of the rare exceptional residential plots to be on the market, especially in a location where there are mostly retail, F&B outlets and office users. Located at the fringe of the CBD juxtaposed the charming enclave of Tanjong Pagar and Chinatown, it has the advantage of enjoying diversity in the old world charm of the conservation shophouses as well as taking in the new gleaming skyscrapers of Guoco Tower and several hotels in the vicinity. The expected completion of the Maxwell MRT Station which is part of the Thomson East Coast line will add the connectivity dimension to this site, the expected completion date being 2022.

According to Ms Christina Sim, Director of Capital Markets at Cushman & Wakefield, ‘Maxwell House is expected to be well received as there is a dearth of residential development land in this part of the business and heritage district. With the surrounding neighborhood filled with a plethora of entertainment and retail outlets plus a smorgasbord offering of much-loved Singaporean food, it will be one of the best ‘work-live-play’ sites to be made available. Added to this is the advantage of being in the Central Area where it is not constrained by the guideline on the maximum allowable number of units calculated based on an average size of 85 sqm per dwelling unit. Potential Developers have the creative flexibility of building studio units or dual key units, subject to the approval of the competent authority.’

The tender for 20 Maxwell Road will close on Tuesday 12 November 2020 at 3.00pm.

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