Real estate services firm C B Richard Ellis has announced the public tender sale of Pasir Panjang Village.

Located at the junction of South Buona Vista Road and Pasir Panjang Road, the freehold Pasir Panjang Village consists of a row of 14 conserved two-and-a-half-storey shophouses that are adjacent to the Village Centre.

The 22,000-sq-ft site is zoned for both commercial and residential use. With a gross plot ratio of 3.0 in the 2003 Master Plan, there is a possibility of maximising the plot ratio to convert it into a boutique hotel, given its proximity to Sentosa.

Pasir Panjang Village is surrounded by residential developments and is across the road from Pasir Panjang Distripark. It is also a short drive from the Pasir Panjang Wholesale Centre, West Coast Car Mart, the Science Park and the National University of Singapore.

“The asking price of Pasir Panjang Village is $30 million. At this price, the potential buyer can expect a return of above 3-per-cent yield, which is quite attractive, compared to the banks’ fixed deposit rates and current yield payouts by some listed Reits,” said Mr Charles Hoon, director of investment properties at C B Richard Ellis.

The company has also announced the public tender sale of 18 Howard Road.

The freehold industrial 42,800-sq-ft site is located at the corner of Howard Road and MacTaggart Road, off MacPherson Road. Zoned for Business 1 in the 2003 Master Plan, it lies within a well-established industrial estate near the future site of the Tai Seng MRT station.

The asking price for 18 Howard Road is $18 million, or $164 per square foot (psf) per plot ratio. Potential developers can expect a breakeven price of slightly above $300psf.

“The industrial sector is currently laggard and has great potential for future growth, compared to the office, retail and industrial sectors where prices are close to the previous peak of 1996/1997.

“Optimism in the industrial sector is also fuelled by expectations that the economy is set to grow by five per cent for the next five years,” said Mr Hoon.

C B Richard Ellis is the sole marketing agent for both properties. The tender exercises for 18 Howard Road closes on June 12 at 3pm. The tender for Pasir Panjang Village closes on June 13 at 3pm.

Source: Weekend Today, 19 May 2007