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reporter2
26-07-17, 20:52
Meyer Road condo sold en bloc for $69m

Jul 21, 2017

Wong Siew Ying


The Albracca condominium in Meyer Road has been sold for $69.12 million in an en bloc deal - the fifth done this year.

The owners had hoped for a price from $62 million to $65 million when the tender opened last month.

So the deal they secured from developer Sustained Land, after several bids were lodged, is up to 11.5 per cent above expectations.

The price works out to $1,409 per sq ft per plot ratio, inclusive of development charges payable to intensify the land use, marketing agent JLL said yesterday.

The freehold development near Tanjong Rhu has apartments from 1,658 sq ft to 3,972 sq ft. So each owner stands to pocket "slightly under $4 million to $7 million plus", said JLL senior consultant Karamjit Singh.

Mr Singh noted yesterday: "The Albracca's tender response was strong, with over a dozen bids received from developers of all sizes - from large to boutique developers, contractors and a fund manager."

The 23,400 sq ft Meyer Road site near the upcoming Katong Park MRT station has an allowable gross plot ratio of 2.1 under the 2014 Master Plan.

It could be redeveloped into a high-rise project, housing 65 apartments with an average size of 70 sq m or about 750 sq ft.

The sale signals that the collective sale market is powering ahead amid more positive buyer sentiment and developer hunger for sites.

"Clearly, there is an increasing convergence of views among developers that the down cycle, which lasted over four years, has turned a corner.

"Sentiments in the residential market have also been buoyed by the strength of the stock market this year," Mr Singh added.

Four en bloc deals have been completed in recent months: One Tree Hill Gardens, Goh & Goh Building and the former HUDC estates Rio Casa and Eunosville.

Including The Albracca, the total value of collective sale transactions has hit around $1.58 billion this year - trumping the three deals, worth $1 billion in all, done last year.

reporter2
26-07-17, 21:04
Albracca condo at East Coast sold for S$69.1m

July 21, 2017

Lee Meixian


THE latest to join a recent spate of successful collective sales is The Albracca, a 10-storey residential development along Meyer Road at East Coast. It was sold on Thursday to Sustained Land for S$69.1 million by marketing agent JLL.

Karamjit Singh, senior consultant at JLL, said this works out to S$1,409 per square foot per plot ratio (psf ppr), inclusive of development charges of S$115,000 for intensifying the gross plot ratio to 2.1 from 2.09.

This is the first time that the 11-unit strata-titled development was offered for sale collectively. The owners' guide price during the tender was S$62 million to S$65 million.

When contacted, director of Sustained Land, Douglas Ong, said that his company plans to develop a 65-unit apartment on the site.

This is also the maximum number of units, assuming an average size of 70 square metres each, allowed under the 2014 Master Plan. Mr Ong added that while this is not a big project, it will give his company "something to do".

The developer's other ongoing projects include Sturdee Residences near Farrer Park MRT, TRE Residences in Geylang (jointly with MCC Land), Poiz Residences at Potong Pasir, and a building at 3 Cuscaden Walk.

Mr Ong said he was drawn to the site because of its location near an upcoming station called Katong Park station, which is part of the Thomson-East Coast Line slated to be ready in 2023.

The development will be sea-fronting with unblocked views across Katong Park and the sea, he added. He hopes to launch the units of the completed development at S$2,300 to S$2,500 psf.

The launch of this tender exercise came shortly after four collective sales were successfully concluded in May 2017 for about S$1.5 billion, surpassing the total number of en bloc deals completed in 2016.

Mr Singh said: "The Albracca's tender response was strong with over a dozen bids received from developers of all sizes - from large to boutique developers, contractors and a fund manager.

"Clearly, there is an increasing convergence of views amongst developers that the down cycle, which lasted over four years, has turned a corner, and that it's time to be back . . .As for en bloc sellers, this also comes as a relief as many have been waiting for such an opportunity for years."