Two freehold redevelopment sites along Cavan Road launched for public tender

Indicative pricing for 2 Cavan Road is at $47.4m and $12.6m for 21 Cavan Road.

Two freehold redevelopment sites located at 2 and 21 Cavan Road have been launched for sale by public tender, an announcement by CBRE revealed.

The site at 2 Cavan Road has a land area of approximately 20,100 sqft and accommodates a part-single-part-three-storey light industrial-cum-warehouse building said to have been built in the 1950’s. Located just across the street, 21 Cavan Road is a smaller site of 8,529 sqft which is occupied by a four-storey light industrial building completed in 1975.

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Under the 2014 Master Plan, both sites are zoned “residential with commercial at 1st storey” with a plot ratio of 3.0. As the current gross floor area (GFA) of both buildings are under-utilised, the successful buyer can consider maximizing the gross floor area of 2 Cavan Road to approximately 60,301 sqft and 21 Cavan Road to 25,588 sqft upon redevelopment, CBRE highlighted.

“Subject to relevant authorities’ approval, new extensions within the conservation guidelines of up to a six-storey building height are permitted, of which relevant development charges will be applicable,” CBRE said. “The two development sites belong to a single owner, so approval from strata titles board will not be required.”

Indicative pricing for 2 Cavan Road is at $47.4m and $12.6m for 21 Cavan Road.

“Assuming the existing building at 2 Cavan Road is conserved and incorporated into the proposed redevelopment, the development charge for this site will be $18.9m,” CBRE noted. “Meanwhile, a development charge of $15.5m is payable for the redevelopment of the smaller site at 21 Cavan Road. After factoring in these development charges, the guide price for each site works out to S$1,100 per square foot per plot ratio.”

Interested parties may submit bids for either one or both sites. The public tender exercise will close on 30 April at 3 p.m.