RIVAL developers from here and overseas are expected to be in the race for SingTel's ageing Robinson Road building, which was put up for sale yesterday.
The seven-storey block at No. 71 - once known as Crosby House - is one of the last underdeveloped sites on the prime financial district street.
The 1950s property, which houses the Robinson Road Post Office, could be turned into a 35-storey office building or a 52-floor apartment block.
Marketing agent Credo Real Estate said the sale by tender could yield about $143 million, which would include a fee to intensify the land use and top up the remaining 45 years lease to 99 years.
The price would work out to $521 per sq ft (psf) per plot ratio. This would enable the new owner to sell a redeveloped office building for $1,300 psf.
In June, the 35-storey SIA building a few doors down was sold to CLSA Capital Partners for $343.9 million or $1,165 psf.
Credo managing director Karamjit Singh said the positive outlook for both the office sector and inner-city apartments should ensure a high level of interest from local developers and foreign funds backed by developers.
The new owners could build flats on the site as SingTel has been granted the permission to redevelop the building into a 52-storey, 330-unit apartment block with shops on the first level.
Leasehold inner-city apartments are in demand, judging from prices of The Sail @ Marina Bay in the new downtown. Units here are going for between $1,000 psf and $1,400 psf in the resale market, said Credo.
The Clift at the Natwest Centre site at nearby McCallum Street is being marketed at between $1,000 psf and $1,100 psf.
About 120 units of the 312-unit project have been sold since its preview early last month.
However, it may be better to redevelop SingTel's block as an office building considering the shortage of office space, said Mr Donald Han, managing director of property consultancy Cushman & Wakefield.
Robinson Road is still a respectable address for offices, he said.
'It's also quite a sizeable plot,' he said, adding that the new development would be similar in size to one tower of SGX Centre in Shenton Way.
The tender closes on Sept 28.
