Thursday, March 12, 2009

$36m paid for Mohd Sultan building

THE $35.8million sale of a Mohamed Sultan Road building has been completed, six months after the contract was first signed.

The acquisition by Ka$h International of Le Mercier House at 65 Mohamed Sultan Road is rare today given the depressed state of the property market, said Isabel Redrup Agency managing director Susan Ye. Her property agency brokered the deal.

Ka$h already owns the site next door, which houses the Hansgrohe showroom.

Although the deal was clinched with seller Le Mercier's Fine Furnishings during better economic times, Ka$h went through to completion and at the agreed price, added Mrs Ye.

Le Mercier has occupied the four-storey building for the past decade and is still running its high-end furniture store there.

It will rent the space from Ka$h - whose major shareholder is Mr Cheong Keng Hooi - but is looking for more upmarket premises.

Mrs Ye said the property is zoned for warehouse/residential use and can be converted into a 15-storey block of apartments.

The land size is 14,200 sq ft and the current built-up space is around 52,000 sq ft. However, the site is over-built.

'It has a plot ratio of 2.8, so rebuilding it will not allow for more than 39,000 sq ft of gross floor area in the future,' she said.

However, the location is desirable for those who like to live close to Orchard Road but outside the ERP zone, she said.

Many investors steered clear of the market for much of last year but are now starting to return, said Mrs Ye.

She added that they were a mixture of both individuals and companies.

Source: Straits Times, 12 Mar 2009

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