Tai Wah Building sold to Lucrum Capital for $84.9 mil

Updated, Nov 16, 2017, 10:00 p.m., to change the Tai Wah Building site area to 38,414 sq ft instead of 39,809 sq ft as previously published.
Tai Wah Building at Somerset has been sold on Nov 16 to Singapore-based private equity investment firm Lucrum Capital at $84,888,888. According to Edmund Tie & Company (ET&Co), who brokered the collective sale, this translates to a land rate of $2,209 psf per plot ratio (ppr).
Lucrum Capital plans to redevelop the property into a serviced apartment with a commercial component on the first level. ET&Co says it has submitted an application for the proposed redevelopment of the site, which has received in principle approval from authorities.
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100% of the owners at Tai Wah Building have agreed to the collective sale, which will make for smoother deal completion, says ET&Co.
Source: ET&Co
Completed in the mid-1980s, the four-storey Tai Wah Building comprises two shops and six apartments.
Located at Killiney Road, the freehold Tai Wah Building site spans approximately 13,148 sq ft. Under the 2014 Master Plan, the site is zoned ‘Residential with Commercial at first storey”.
Subject to authorities’ approval, the site can be redeveloped up to its existing gross floor area of 38,414 sq ft, exceeding the permissible plot ratio of 2.8 as stated in the 2014 Master Plan, says ET&Co.