KH Kea Properties seeking partner to develop building

20140211-bt-kh-kea-properties-seek-partner-develop-building THE owner of the small building next to Bras Basah Complex and with McDonald's as tenant on the lower floors is seeking a joint-venture partner to tap on the highest and best use for the property.

KH Kea Properties Pte Ltd, controlled by an Indonesian family with business interests across Asia, owns the nine-storey building at 333 North Bridge Road.

The building's existing gross floor area (GFA) of 29,049 sq ft reflects an equivalent plot ratio of 7.145, exceeding the 5.2 plot ratio allocated for the site under Master Plan 2008. KH Kea Properties also owns an adjacent 635 sq ft piece of land along Cashin Street. Currently serving as road access to the basement carpark, the plot can yield up to 3,302 sq ft GFA based on its 5.2 plot ratio in Master Plan 2008.

Both properties have balance lease tenure of 812 years. They are zoned for commercial use. Together they can yield 32,351 sq ft GFA.

Located a stone's throw from City Hall MRT Station, KH Kea Building is more than 30 years old.

Savills Singapore, which is conducting an expression of interest for the building and adjacent plot, is inviting proposals to participate in a joint venture with the vendor to tap on the highest and best use for the property. "Any other proposals are welcomed," it said.

However, the property consultancy could not provide a price guide at this juncture, as the pricing will depend on the proposed terms of the joint venture.

One possibility would be to do addition and alteration works including utilising the GFA from the adjacent plot to add a floor to KH Kea Building or bulking up its retail podium. Strata commercial units could then be sold. Alternative uses such as a hotel, serviced residence or residential may be possible - subject to approval from the authorities. Another option would be to tear down the existing building and redevelop the combined site.

KH Kea Building has F&B space on the first two levels (with close to 5,000 sq ft net lettable area) and seven office floors above of 2,500 sq ft each.

"The vendor had received unsolicited interest in recent months, which is why an EOI exercise is being initiated," said Savills deputy managing director Steven Ming. "The offering of CBD boutique commercial assets with long 999-year leasehold tenure situated at prime location near an MRT interchange station is rare. This investment opportunity would appeal to both institutional investors, ultra-affluent individuals and even end-users."

The EOI will close on March 18.

Source: Business Times, 11 Feb 2014