Noel Building in Tai Seng is being sold off collectively for $70 million
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Noel Building, the freehold development located on 50 Playfair Road in the Tai Seng area, is available for auction with a suggested price of $70 million. The eight-storey building is situated on 2679 square feet of site which is zoned to “Business 1 and White” usage with an area size of 3.5. It is situated 400m away from Tai Seng MRT Station on the Circle Line.
“Sites that are zoned for “Business 1 – White usage are very rare, with just some scattered sites throughout Singapore,” notes Swee Shou Fern director of advisory services for investment for Edmund Tie, which marketing the property. She believes that the property located at 50 Playfair Road offers a unique opportunity for owners looking to create and build their own corporate headquarters. One option could be convert the property into strata factories to allow all-light industrial use.
The site could be developed to provide an area of gross floor space of 93,770 sq feet with the possibility of using all of the space for business 1 as well as light industrial purposes or, alternatively, at minimum 66,978 square feet can be allocated for light industrial uses as well as the remaining 26,791 square feet could be repurposed for “White” usage, says Edmund Tie. Permitted uses in this zoning include cafes, restaurants, shops showrooms offices, associations, and recreation clubs, among others. subject to approval by appropriate authorities.
The price guide of Noel Building works out to the land rate of $776-$986 psf in plot proportions (psf ppr) dependent on the percentage of white and industrial usage.
Swee notes that high-quality strata factories that are located near transportation hubs like MRT and surrounded by amenities are sought-after. “This is evident by the nearby AZ@PayaLebar which was completed in 2014, and in which the cost of factories for strata have increased by about six% between an average $1,389 for square foot in the 2H2022 period and $1,472 for a sq ft for the 1H2023 period,” she says.
Swee says that the most significant transaction that took place for the site that had “Business 1 – White” zone within the private sector was a sale of Citimac which is currently Grantral Mall at MacPherson. The site was bought in bulk in 2017 for $430.1 million ($1,047 psf per ppr) in the year 2017. The deal was mediated through Edmund Tie.
A tender to purchase Noel Building will close on November 22 at 3pm.