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 re-launched for collective sale via a second tender on 19 April 2022.
Cushman & Wakefield had originally launched the first tender for Sixth Avenue Centre at the end of 2021 and closed it on 6 January 2022. Unfortunately, the market then was reeling from a round of cooling measures which came into effect on 16 December 2021. Among the several measures was the increased levy of Additional Buyers’ Stamp Duty from 25% to 35% on entities purchasing residential properties. As such, most developers were hesitant to commit to properties with any residential element and preferred to ‘wait and see’ how the market would react during that period.
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% is for residential use.
The reserve price of $85 million for Sixth Avenue Centre remains unchanged at $85 million and this 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.
In 2018, the URA had given approval for the residential portion to be retained as serviced residences in an Outline Application. Additionally, it also requires the future developer to amalgamate a small portion of remnant land at the splayed corner junction at Sixth Avenue. 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 of 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, “In addition to its prime location within the affluent suburbia precincts of District 10, and coupled with a young population and high purchasing power, 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, 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, 26 May 2022.