Verdun House sold for $55.1 mil to Fragrance Group CEO

By
/ EdgeProp Singapore
|
April 27, 2022 3:57 PM SGT
The successful sale comes after the development was relaunched for en bloc sale in March 2022. (Picture: Delasa)
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SINGAPORE (EDGEPROP) - James Koh, the executive chairman and founder of Fragrance Group, has won the en bloc tender for Verdun House, a mixed-use development at the corner of Verdun Road and Sam Leong Road in Farrer Park.
According to a press release on April 27 by Delasa, the marketing agent for the en bloc sale of Verdun House, the commercial property was sold for $55.1 million in a tender exercise that closed on April 26. (See potential condos with en bloc calculator)
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The price translates to $1,793 psf on the potential commercial gross floor area of the site. No development charge is payable to redevelop the site up to its potential plot ratio of 4.2.
Verdun House is a four-storey development that comprises four shops and F&B outlets on the ground floor, as well as 12 apartments across the upper floors. The building was built during the 1980s.
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Fifteen of the 16 strata-title owners of Verdun House gave their consent to the sale. But the transaction is still subject to the Strata Titles Board’s approval. If the sale is approved, each apartment owner stands to gain proceeds of between $2.1 million and $2.8 million, while each shop owner would receive between $5.7 million and $7.5 million.
The successful sale of Verdun House comes after several attempts. The development was initially launched for collective sale in 2018 with a reserve price of $60 million. The owners tried again in August 2021 at a reserve price of $55 million, and the en bloc tender was relaunched at the same reserve price in March 2022.
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“While Verdun House may be redeveloped, it offered better prospects as a value-add proposition, which would see the investor sprucing up the building before refreshing the tenancies and income. True enough, the interest it garnered was mainly from long-term local property investors who know this space well,” says Karamjit Singh, CEO of Delasa.
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