PDA

View Full Version : Four developers pay $243m in joint buy



moneyspinner
21-06-07, 14:12
DJ Lian Beng Consortium Buys Singapore Property For S$243M


SINGAPORE (Dow Jones)--A consortium of minor Singapore property companies said Thursday it has bought the Lincoln Lodge condominium for S$243 million.

The consortium members are Lian Beng Group Ltd. (L03.SG), Koh Brothers Group Ltd. (K75.SG), Heeton Holdings Ltd. (5DP.SG), and KSH Holdings Ltd. (A8E.SG).

The freehold property, in the prime Newton Road area of the island, has a land area of 60,000 square feet and can be redeveloped into a 36-storey residential block, the consortium said in a statement.

joe
21-06-07, 16:34
Joint Acquisition of freehold site at Lincoln Lodge

joe
21-06-07, 16:38
$1446 psf ppr inclusive of devt charge.

mr funny
22-06-07, 04:40
Published June 22, 2007

Four developers pay $243m in joint buy

Koh Bros, Heeton, KSH, Lian Beng acquire freehold Lincoln Lodge

By UMA SHANKARI


PROPERTY developers Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group have joined hands to buy the freehold Lincoln Lodge for $243 million, the companies said in a joint statement yesterday. The four will hold equal stakes in the project.

http://www.businesstimes.com.sg/mnt/media/image/launched/2007-06-22/BT_6485699_22_06_2007.jpg
Mr Koh: Says the partners were very interested in the site's excellent location

The price for the site, located in the prime District 11 off Newton Road, works out to $1449.3 per square foot per plot ratio (psf ppr) including an estimated development charge of $413,000.

The consortium is also 'quite confident' of acquiring a 3,358 sq ft plot of state land beside the property for about $3 million, said Koh Brothers chief executive Francis Koh.

If the four companies bag the state land, then the price paid for both sites will come to about $1,370 psf ppr, he said. Combined, the two sites will give the developers a total gross floor area of about 177,400 sq ft to work with.

The partners intend to build a 36-storey residential project with 120 luxurious apartments averaging 1,600 sq ft. The project will be launched in the first half of 2008, at prices in the region of $2,500 psf, Mr Koh said. The break-even cost for the project is expected to be around $2,000 psf.

The site was put on the market in May with a reserve price tag of $188 million. The consortium's offer of $243 million was the highest of a few bids, BT understands.

Mr Koh said that the partners were willing to pay significantly more than the reserve price as they were 'very interested' in the site, and the upbeat property market means that they can be confident of making a profit even at higher break-even costs. 'I think at the moment, it is about how much you can sell for,' Mr Koh said. He cited the site's 'excellent location' as well as the rising rental market as reasons.

The project will mark the first time all four companies have come together to develop a property. Koh Brothers and Heeton Holdings have worked together in the past - they will soon launch The Lumos in the prime Leonie Hill area, probably in the first week of July.

At the end of yesterday's trading, the companies' counters moved up as Koh Brothers' stock rose 1.5 cents to end at 55.5 cents, while Heeton's stock climbed 0.5 cents to close at 98.5 cents. Shares of KSH rose 4 cents to close 87 cents, while Lian Beng's stock ended the day 2.5 cents up at 44 cents.

Unregistered
22-06-07, 06:28
this is good news for newton suites.

mr funny
22-06-07, 15:26
June 22, 2007

Lincoln Lodge sale sets top land price for Newton area

Consortium pays record $1,449 per sq ft per plot ratio for the estate

By Fiona Chan, Property Reporter


http://www.straitstimes.com/STI/STIMEDIA/image/20070621/ST_IMAGES_FIOLINCOLNm.jpg
JOINT EFFORT: The group - comprising Koh Brothers, Heeton, KSH and Lian Beng - is paying $243 million for the site near Goldhill Plaza. -- PHOTO: NEWMAN & GOH


A GROUP of four property and construction firms has paid a benchmark price for a site in Newton, betting that home prices in the area will surge over the next two years.

The consortium of Koh Brothers Group, Heeton Holdings, KSH Holdings and Lian Beng Holdings forked out $243 million for Lincoln Lodge off Newton Road.

Owners at the 98-unit estate will each get between $1.89 million and $3.07 million.

The consortium's price works out to $1,449 per sq ft per plot ratio (psf ppr) for the 59,984 sq ft site - a record land price for the Newton area, said Newman & Goh, which marketed the estate.

The previous record was held by Gilstead View, which was sold for $1,070 psf ppr last month.

Newman & Goh's head of investment sales, Mr Jeffrey Goh, believes that a new development on the Lincoln Lodge site could fetch $2,500 psf.

This bullish projection is 'riding on the announcement of SC Global's The Marq, which is targeted to fetch $4,000 psf', he said.

SC Global said on Tuesday that its latest project at Paterson Hill in the prime Orchard Road area will be sold at average prices of $4,000 psf.

But although Newton homes are still considerably cheaper than those in Orchard, Mr Goh is confident that their prices are set to soar.

'Already, we have heard that some upcoming launches in the Newton area will be priced above $2,000 psf,' he told The Straits Times.

'Going forward, 18 months down the road, it shouldn't be a problem for a new project on the Lincoln Lodge site to fetch $2,500 psf, and maybe even up to $2,700 psf.'

The record for homes in the Newton area is believed to be held by Scotts HighPark. The project, at Scotts Road next to Newton MRT Station, has fetched slightly more than $2,000 psf for a handful of units.

But closer to Lincoln Lodge, which is on Khiang Guan Avenue near Goldhill Plaza, most newer condominiums sell for only between $1,100 psf and $1,450 psf.

Units at the neighbouring Newton Suites, for instance, have changed hands for an average of $1,300 psf in the past two months. Nearby, Park Infinia at Wee Nam is selling for $1,200 psf and above.

Lincoln Lodge's break-even price is expected to be about $2,000 psf ppr, said Mr Goh.

A 36-storey project with 120 apartments of 1,600 sq ft each can be built on the site, said Koh Brothers yesterday.

The shares of all four partners, which own equal stakes in the project, rose yesterday.

Koh Brothers was up 1.5 cents at 55.5 cents; Heeton Holdings advanced 0.5 cent to 98.5 cents; KSH Holdings added four cents to 87 cents; and Lian Beng increased 2.5 cents to 44 cents.

[email protected]