mr funny
27-09-10, 22:51
http://www.businesstimes.com.sg/sub/news/story/0,4574,405520-1285444740,00.html?
Published September 25, 2010
Swiss Club's 'useless' strip of land brightens a tycoon's plot
By VEN SREENIVASAN
IF you are looking for a bargain on a piece of land in the Bukit Tinggi area, off Bukit Timah, perhaps you should contact The Swiss Club.
In its August newsletter, the club - which owns vast tracts of land in the tranquil high-end Bukit Tinggi area - informed members of plans to sell its Lot 1945 for $150,000. The property in question is a thin slice of land, measuring some 374 square metres (4,026 square feet).
The proposed selling price of $150,000 works out to just over $37 per sq ft (psf). The land is being sold to one LS Kwee, against whose property it sits. LS Kwee is also the same Kwee Liong Seen listed as a member of the Swiss Club.
Kwee Liong Seen is also the name of one of the four brothers of the Pontiac Land empire, whose properties include the Ritz-Carlton, the Regent, Conrad Centennial, the Capella in Singapore, and others.
The property in question used to be part of the main Swiss Club premises until it was separated by a road, Swiss Club Link, built some two decades ago. It now runs adjacent the perimeter of Mr Kwee's good-class bungalow plot (MK15-215V), measuring some 126,254 sq ft.
The deal has run into opposition from some club members.
The main bone of contention, not surprisingly, is the fact that the selling price of $150,000 or $37 psf represents a big discount to the prevailing price of around $800-1,000 psf in the vicinity.
But the club says the land - which is barely wide enough for a footpath - is priced to reflect the fact that it is of no real economic value to the club. And the committee of the Swiss Club, led by president Martin Silberstein, has called for an AGM to explain the sale to members next Monday.
This is how Mr Silberstein explained the deal in the August issue of the club's monthly magazine: 'Until about 20 years ago, Lot 1945 adjoined the Club and was part of the main property. However, since the government took over the Swiss Club Link, Lot 1945 has no longer been connected with the Club's main property. In the opinion of Mr John Carter, a former property consultant for the club, Lot 1945 became 'incapable of independent development' - or, in other words, useless.'
BT was unable to contact Mr Silberstein or club officials for further comment.
Though Mr Silberstein is correct about the club being unable to ever use the land, not everyone agrees with his determination of its value.
'The argument that this land is worthless is false,' said one member. 'It has huge economic value to the Kwee family. If you take a conservative value of $800 psf, this means the owner stands to make a profit of over $3 million. If it means that much of value to the Kwees, surely it should fetch a much higher price for the club?'
Dissenting members point out that the strip of land gives the Kwees' MK15-215V plot direct access from Swiss Club Link. This significantly raises the development potential and value of the plot. They argue that the purchase of the thin strip of Lot 1945 would enable the Kwees to build over eight good class bungalows of some 15,000 sq ft each with easy access from three roads - Jalan Kampung Chantek, Swiss Club Link and Swiss Club Road.
Currently, the plot is only adjacent to Jalan Kampung Chantek and Swiss Club Road.
Members also note that while the club is in good financial health (having some $5.06 million in accumulated funds and operating revenue of $7.14 million annually) and is not in desperate need of cash, a healthy return from the land would enable it to further enhance its physical facilities.
Published September 25, 2010
Swiss Club's 'useless' strip of land brightens a tycoon's plot
By VEN SREENIVASAN
IF you are looking for a bargain on a piece of land in the Bukit Tinggi area, off Bukit Timah, perhaps you should contact The Swiss Club.
In its August newsletter, the club - which owns vast tracts of land in the tranquil high-end Bukit Tinggi area - informed members of plans to sell its Lot 1945 for $150,000. The property in question is a thin slice of land, measuring some 374 square metres (4,026 square feet).
The proposed selling price of $150,000 works out to just over $37 per sq ft (psf). The land is being sold to one LS Kwee, against whose property it sits. LS Kwee is also the same Kwee Liong Seen listed as a member of the Swiss Club.
Kwee Liong Seen is also the name of one of the four brothers of the Pontiac Land empire, whose properties include the Ritz-Carlton, the Regent, Conrad Centennial, the Capella in Singapore, and others.
The property in question used to be part of the main Swiss Club premises until it was separated by a road, Swiss Club Link, built some two decades ago. It now runs adjacent the perimeter of Mr Kwee's good-class bungalow plot (MK15-215V), measuring some 126,254 sq ft.
The deal has run into opposition from some club members.
The main bone of contention, not surprisingly, is the fact that the selling price of $150,000 or $37 psf represents a big discount to the prevailing price of around $800-1,000 psf in the vicinity.
But the club says the land - which is barely wide enough for a footpath - is priced to reflect the fact that it is of no real economic value to the club. And the committee of the Swiss Club, led by president Martin Silberstein, has called for an AGM to explain the sale to members next Monday.
This is how Mr Silberstein explained the deal in the August issue of the club's monthly magazine: 'Until about 20 years ago, Lot 1945 adjoined the Club and was part of the main property. However, since the government took over the Swiss Club Link, Lot 1945 has no longer been connected with the Club's main property. In the opinion of Mr John Carter, a former property consultant for the club, Lot 1945 became 'incapable of independent development' - or, in other words, useless.'
BT was unable to contact Mr Silberstein or club officials for further comment.
Though Mr Silberstein is correct about the club being unable to ever use the land, not everyone agrees with his determination of its value.
'The argument that this land is worthless is false,' said one member. 'It has huge economic value to the Kwee family. If you take a conservative value of $800 psf, this means the owner stands to make a profit of over $3 million. If it means that much of value to the Kwees, surely it should fetch a much higher price for the club?'
Dissenting members point out that the strip of land gives the Kwees' MK15-215V plot direct access from Swiss Club Link. This significantly raises the development potential and value of the plot. They argue that the purchase of the thin strip of Lot 1945 would enable the Kwees to build over eight good class bungalows of some 15,000 sq ft each with easy access from three roads - Jalan Kampung Chantek, Swiss Club Link and Swiss Club Road.
Currently, the plot is only adjacent to Jalan Kampung Chantek and Swiss Club Road.
Members also note that while the club is in good financial health (having some $5.06 million in accumulated funds and operating revenue of $7.14 million annually) and is not in desperate need of cash, a healthy return from the land would enable it to further enhance its physical facilities.