A Singapore billionaire bought this freehold Farrer Park building for $55.1m — now it's asking $82m

Verdun House is a four-storey, freehold commercial property at 6, 8, 10 and 12 Verdun Road. The development is on the market at a guide price of $82 million, according to its marketing agent Cushman & Wakefield. 

The property was previously acquired by Fragrance Group executive chairman and CEO James Koh, who originally bought it for $55.1 million in April 2022. That transaction followed two previous en-bloc attempts: one in August 2021 for $55 million, and one in 2018 with an asking price of $60 million.

The current guide price represents a 48.8per cent premium in just over four years. 

The land plot is a regular-shaped site spanning approximately 7,316 sq ft, with an existing Gross Floor Area (GFA) of approximately 22,730 sq ft. Based on a new maximum potential GFA of around 30,728 sq ft (Gross Plot Ratio of 4.2), the $82 million guide price translates to approximately $2,669 per sq ft. 

Verdun House is currently fully leased, with a mix of F&B and retail tenants on the ground floor. There is also a single co-living operator occupying the upper floors, so buyers immediately benefit from a diversified income stream. 

In addition, a reconfiguration of the existing co-living accommodation (subject to authorities’ approval) may present an opportunity to increase the number of units.

Shaun Poh, Executive Director at Cushman & Wakefield Singapore, says,

“Verdun House offers investors a rare opportunity to acquire a sizeable freehold commercial asset in the established Farrer Park precinct. The fully leased property provides immediate and stable income, while its commercial zoning offers multiple avenues for long-term value creation through asset enhancement, plot ratio intensification or redevelopment, subject to the necessary approvals. With few freehold commercial assets of this scale available in the city fringe, Verdun House is well positioned to attract investors seeking both income resilience and capital appreciation.”

A successful sale could set a new benchmark against which freehold assets in the area are assessed. 

Part of this is based on the possibility that Farrer Park can draw a wider pool of businesses and users, beyond just the spillover from the CBD. Projects such as Verdun House can draw tenants that include F&B and retail businesses, healthcare workers, students, and working professionals.

Verdun House is also within walking distance of Farrer Park MRT Station (NEL), providing good connectivity to the CBD and other key commercial precincts. 

The property is also close to a range of lifestyle amenities including City Square Mall, Mustafa Centre, Centrium Square and Farrer Park Hospital. 

This is an area popular with students from nearby institutions including Singapore Management University, School Of The Arts, Nanayang Academy of Fine Arts and Lasalle College of Arts. 

Sophia Lim, Director, Capital Markets, Cushman & Wakefield Singapore, says: 

“The Farrer Park precinct continues to see strong occupier demand, supported by excellent connectivity, an established healthcare cluster, and access to educational institutions and lifestyle amenities. Verdun House is well positioned to cater to young professionals, healthcare workers in the Farrer Park medical cluster, and students from nearby institutions. 

Together with its existing income stream and potential to optimise the current accommodation layout, subject to the necessary approvals, the property offers investors an opportunity to participate in the continued growth of Singapore’s living sector.”

The Verdun House sale will be conducted through an EOI exercise which closes on Sept 21.

[[nid:742681]]