S$26 million price tag for freehold site in Novena

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A freehold residential site located at 2 Derbyshire Road has received an expression of interest for its sale at an estimated price of around $26 million (SGD).

Situated just near Thomson Road, a 4-storey building currently sits on the site, which has a land area of 6,768 sqft. The gross floor area has been calculated to be approximately 8,742 sqft.

2 Derbyshire Road Freehold Site Sale

Owned by a Singaporean family, the property is currently leased to a the NAFA Arts Kindergarten.

According to property consultants, the current income from the tenancy and the approval given for using the property to operate a child care centre/kindergarten is certainly an attractive option to potential investors.

On top of that, there may be a possibility for investors to change the use of the site for residential development, as the land parcel is nestled within residential developments – such as the latest new launch project, 6 Derbyshire.

Back in year 2008, interim permission was actually given by the Urban Redevelopment Authority of Singapore to construct an 8-storey apartment with basement parking and a communal pool – with a plot ratio approved at around 2.4.

However the owner did not proceed with the redevelopment due to the interest received from the current tenant for child care operations.

Market watchers expect the site to receive strong interest from profiles such as boutique property developers, child care service operators and investment funds.

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