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20-12-06, 11:09
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Published December 20, 2006
Parisian sets new land price benchmark
Top offer by OUE hits $1,730 psf ppr, say sources
By KALPANA RASHIWALA
(SINGAPORE) A new benchmark has been set for land price in Singapore.
http://img84.imageshack.us/img84/8691/bt53478692012200638447aib5.jpg
The Parisian: The freehold site is said to have drawn five bids in latest round of bidding
Bidding for the collective sale of The Parisian at Angullia Park has attracted a top offer that works out to a unit land price of about $1,730 psf of potential gross floor area including development charges (DC), sources have told BT.
An entity of the Lippo Group, most likely Overseas Union Enterprise (OUE), is said to have been the top bidder for the freehold residential site.
OUE is said to have been given an option for the purchase of The Parisian. The option is subject to the property's marketing agent CB Richard Ellis securing, within the next few weeks, the requisite approval for a collective sale from The Parisian's owners controlling at least 80 per cent of share values.
OUE's top bid for The Parisian topples the current record price for residential land set in October this year. That month, Wing Tai paid $1,369 psf per plot ratio (psf ppr) including DC, for Ardmore Point at Ardmore Park.
The top offer for The Parisian has also busted the current overall record price for land in Singapore. That record was set just this week on Monday when Sino Land was awarded the Collyer Quay site for commercial/hotel use on a 60-year lease for $1,540 psf ppr.
Analysts said that despite OUE bidding a record unit land price for The Parisian, it should still be a profitable venture, thanks to the current buoyant high-end residential prices seen in recent launches.
The breakeven cost for OUE's new project on the Parisian site is estimated at about $2,250 to $2,300 psf.
OUE is said to have bid about $228 million for the 49,114 sq ft site. Assuming the DC is $10.4 million as reported when the site was launched in early November, OUE's bid reflects a unit land price of $1,734 psf ppr. However, the DC quantum is not fully certain as the DC baseline has yet to be established. Sources said that even if the DC quantum turns out to be lower than the $10.4 million estimate, The Parisian's unit land price will still be a new benchmark for land in Singapore.
Prior to yesterday's bidding, CB Richard Ellis had garnered approval from the Parisian owners who control just over 60 per cent of share values.
CB Richard Ellis marketed The Parisian through an expression of interest exercise which closed earlier this month. As the initial price indications were shy of expectations, the firm embarked on negotiations that led to another two rounds of bidding, the last of which took place yesterday.
Yesterday's bidding is said to have drawn five bids in total. Property giant Far East Organization, Emirates Investment Group and Hong Kong parties are all thought to have participated in yesterday's exercise.
The Parisian site is zoned for residential use with a 2.8 plot ratio (ratio of potential maximum gross floor area to land area).
The site, which has a 36-storey height limit, can be redeveloped into a new project with about 68 units averaging 2,000 sq ft.
OUE is controlled by a 60:40 joint venture between Indonesia's Lippo Group and Malaysian tycoon Ananda Krishnan. Earlier this month, it announced a private placement of 20 million new shares at $10.50 apiece. The $204.3 million net proceeds will be used for redeveloping Overseas Union House at Collyer Quay, sprucing up Mandarin Gallery on Orchard Road into a luxury mall, land acquisitions and other uses
Published December 20, 2006
Parisian sets new land price benchmark
Top offer by OUE hits $1,730 psf ppr, say sources
By KALPANA RASHIWALA
(SINGAPORE) A new benchmark has been set for land price in Singapore.
http://img84.imageshack.us/img84/8691/bt53478692012200638447aib5.jpg
The Parisian: The freehold site is said to have drawn five bids in latest round of bidding
Bidding for the collective sale of The Parisian at Angullia Park has attracted a top offer that works out to a unit land price of about $1,730 psf of potential gross floor area including development charges (DC), sources have told BT.
An entity of the Lippo Group, most likely Overseas Union Enterprise (OUE), is said to have been the top bidder for the freehold residential site.
OUE is said to have been given an option for the purchase of The Parisian. The option is subject to the property's marketing agent CB Richard Ellis securing, within the next few weeks, the requisite approval for a collective sale from The Parisian's owners controlling at least 80 per cent of share values.
OUE's top bid for The Parisian topples the current record price for residential land set in October this year. That month, Wing Tai paid $1,369 psf per plot ratio (psf ppr) including DC, for Ardmore Point at Ardmore Park.
The top offer for The Parisian has also busted the current overall record price for land in Singapore. That record was set just this week on Monday when Sino Land was awarded the Collyer Quay site for commercial/hotel use on a 60-year lease for $1,540 psf ppr.
Analysts said that despite OUE bidding a record unit land price for The Parisian, it should still be a profitable venture, thanks to the current buoyant high-end residential prices seen in recent launches.
The breakeven cost for OUE's new project on the Parisian site is estimated at about $2,250 to $2,300 psf.
OUE is said to have bid about $228 million for the 49,114 sq ft site. Assuming the DC is $10.4 million as reported when the site was launched in early November, OUE's bid reflects a unit land price of $1,734 psf ppr. However, the DC quantum is not fully certain as the DC baseline has yet to be established. Sources said that even if the DC quantum turns out to be lower than the $10.4 million estimate, The Parisian's unit land price will still be a new benchmark for land in Singapore.
Prior to yesterday's bidding, CB Richard Ellis had garnered approval from the Parisian owners who control just over 60 per cent of share values.
CB Richard Ellis marketed The Parisian through an expression of interest exercise which closed earlier this month. As the initial price indications were shy of expectations, the firm embarked on negotiations that led to another two rounds of bidding, the last of which took place yesterday.
Yesterday's bidding is said to have drawn five bids in total. Property giant Far East Organization, Emirates Investment Group and Hong Kong parties are all thought to have participated in yesterday's exercise.
The Parisian site is zoned for residential use with a 2.8 plot ratio (ratio of potential maximum gross floor area to land area).
The site, which has a 36-storey height limit, can be redeveloped into a new project with about 68 units averaging 2,000 sq ft.
OUE is controlled by a 60:40 joint venture between Indonesia's Lippo Group and Malaysian tycoon Ananda Krishnan. Earlier this month, it announced a private placement of 20 million new shares at $10.50 apiece. The $204.3 million net proceeds will be used for redeveloping Overseas Union House at Collyer Quay, sprucing up Mandarin Gallery on Orchard Road into a luxury mall, land acquisitions and other uses