City Developments Limited (CDL) has recently announced its acquisition of Delfi Orchard, a prime freehold commercial property located at 402 Orchard Road, Singapore. The purchase was made through a collective sale with a guide price of S$438 million, translating to about S$3,397 per square foot per plot ratio (psf ppr) (Mingtiandi) (Savills Singapore).
Delfi Orchard, a prominent structure built in 1985, sits on a 20,264 square foot plot zoned for commercial use. It is strategically positioned in Singapore’s prestigious Orchard Road area, close to luxury hotels such as the St Regis and Shangri-La, and is currently home to various mid-range businesses including educational institutions, food and beverage outlets, and service companies .
CDL’s acquisition aligns with the Urban Redevelopment Authority's (URA) plans to rejuvenate Orchard Road into a green oasis, encouraging the redevelopment of aging buildings in the area. The site's redevelopment potential includes luxury retail, office space, residential units, or hotels, subject to URA approval (Mingtiandi)
This purchase comes amid CDL's broader strategy to divest and redevelop its property portfolio. Earlier this year, CDL opened The Singapore Edition, a luxury hotel developed on the former Boulevard Hotel site, and is marketing several other commercial properties for sale.
Delfi Orchard is a prime freehold site covering 20,264 square feet and includes 150 strata-titled units, consisting of 127 shops and 23 apartments. CDL owns 126 of these units. The building, located at 402 Orchard Road, is zoned for commercial use and can be redeveloped up to 20 storeys, subject to Urban Redevelopment Authority (URA) approval.
The strategic location of Delfi Orchard, adjacent to the Orchard Hotel and within close proximity to several other luxury hotels and commercial properties, makes it an attractive investment. The property currently hosts various tenants, including Starbucks and educational institutions, and maintains high occupancy rates.
This sale follows a series of notable en bloc transactions in the area, such as the sale of Ming Arcade for SGD 172 million and Tanglin Shopping Centre for SGD 868
million, both reflecting strong market interest in Orchard Road properties.
However, potential buyers will need to navigate regulatory challenges, as seen in the aborted sale of the Far East Shopping Centre due to URA approval issues.
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