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Admin
17-08-06, 17:12
Jan 31, 2006
Collective home sales set for another bumper year
http://img19.imageshack.us/img19/7242/127903864te6.jpg (http://imageshack.us)

Seven sites already launched, as market rides on positive economic outlook
By Joyce Teo
Property Correspondent

IT IS no surprise that optimism is flowing in the property market: The year has barely begun, but already seven collective sale sites have been launched.

And that is coming off a record year in 2005 when 37 collective sales of residential sites worth $2.09 billion were completed - more than double the deals and value achieved in 2004.

Ms Soon Su Lin, executive director of property consultancy CB Richard Ellis, said such sales will continue at the same pace as last year thanks to a good economic outlook.

Supply and demand tells the story: Sites sold en bloc last year generated a potential supply of 3,860 new homes, while overall, 8,955 new homes were sold last year.

'So potential supply from the sites being sold en bloc is expected to meet good demand when they are ready for launch,' said Ms Soon.

Home owners in collective sales typically get at least 30 to 50 per cent more than what they would have reaped from an individual sale. But the risk, said consultants, is that owners may have unrealistically high price expectations.

Typically, potential collective sale developments are more than 10 years old with rising maintenance costs.

Selling these sites require the consent of at least 80 per cent of the owners; those less than 10 years old need 90 per cent acceptance.

Because people looking to rent tend to migrate to new projects, owners of older projects find it harder to find tenants. And with maintenance costs rising, they may be keener on a collective sale, said DTZ Debenham Tie Leung director Tang Wei Leng.

But that does not mean everyone can cash in.

Prime sites in districts 9, 10 and 11 clearly have the best chances. The Cairnhill area appears to have the most potential sites, though projects in posh Ardmore, Draycott, Nassim, Leonie Hill and St Thomas Walk are also very popular, said Credo Real Estate executive director Tan Hong Boon.

'Sites in Cairnhill are very sought-after and the success rate will be good if they are not over-priced,' he said.

In general, most owners ask for about $800-$850 per square foot per plot ratio, though some want as much as $1,000 psf ppr, he said.

Still, the highest residential collective sale land price last year was only at $876 psf ppr - made by Wheelock Properties in September for The Habitat II in Ardmore Park.

Areas in Tanjong Katong Road, Meyer Road, Amber Road, East Cost Road and the Telok Kurau area also have good chances, said the head of investments at Jones Lang LaSalle, Mr Lui Seng Fatt.

The best candidates are developments of six storeys or less, with a small number of units or a large plot of land, said DTZ's Ms Tang.

'Those with facilities would have good rental value so the owners won't be very motivated to sell,' she said.

Credo Real Estate's executive director, Mr Karamjit Singh, said: 'The poorer the physical conditions, the better the chances.'

Surroundings also play a part. For instance, a low-rise development in an area with mostly high-rise projects could be a strong target, he said.

It could be tricky for mixed developments as shop owners may not want to sell. 'The revenue they derive from the shops may be much better than the property's value,' said Ms Tang. 'If they move out, they will lose the goodwill they have established over the years.'

Consultants said many former HUDC estates like Pine Grove, Gillman Heights and Farrer Court have expressed interest in selling collectively.

So have some owners of ageing private properties such as Grand Tower in Moulmein Rise, Eng Tai Mansions at St Thomas Walk, Peck Hay Mansion in Cairnhill and The Ardmore at Ardmore Park.

But getting enough owners to agree to a collective sale could take years. 'It's a waiting game,' said Ms Tang.

A home owner Gerald sold his Parry Gardens home near Yio Chu Kang in 1993, even though a neighbour said there may be plans to sell en bloc.

'I missed out on making money but the deal was only concluded in 2005! I would have had to wait for more than a decade,' he said.

Admin
17-08-06, 17:21
Two more sites offered for collective sale
Freehold properties Hilton Towers, Katong Shopping Arcade go en bloc

March 2, 2006

By KALPANA RASHIWALA

THE en bloc sale bandwagon continues to gain momentum. Two more collective sale sites were launched yesterday - Hilton Towers at Leonie Hill with a $77 million price tag, and Katong Shopping Arcade with a $22 million indicative price. Both are freehold properties.

And over in the Dunearn Road area, SingTel has launched its residential development site at 1 Hillcrest Road. BT reported last week that the asking price is about $95 million. The 256,486 sq ft site comprises two land parcels - one with a remaining lease of about 85 years and the other with 75 years. The successful bidder will have to pay the state almost $40 million - comprising a premium to top up the lease to 99 years, and another to change the site's use from utility to residential. The expected $95 million land price plus the near-$40 million payment to the state works out to a unit land price of about $375 psf of potential gross floor area. Provisional approval has been granted for two-storey, strata landed terrace houses with a 1.4 plot ratio - the ratio of potential gross floor area to land area.

Market watchers say the successful bidder could instead apply to the authorities to develop a five-storey condo with a 1.4 plot ratio. Based on the $375 psf land cost, the breakeven cost works out to about $650 psf for a condo and $1.45 million per strata terrace house.

Jones Lang LaSalle is handling the tender for the property, which closes on March 29. A SingTel spokesman said the sale is in line with its strategy to better utilise capital and free up cash that can be redeployed in its telecommunications business or new investments. Hilton Towers' $77 million price tag works out to be $843 psf of potential gross floor area inclusive of a $3.9 million development charge (DC) and about $600,000 payable for a neighbouring 816 sq ft plot that now houses an electrical substation. Hilton Towers has a 33,700 sq ft site area.

The subject is zoned residential with a 2.8 plot ratio. Colliers International, which is marketing the site, says expressions of interest close on March 30.

Boutique developers more keen on the Guillemard and Tanjong Katong area may be interested in Katong Shopping Arcade. The $22 million indicative price works out to about $300 psf per plot ratio including a $1.5 million DC. Under Master Plan 2003, the property can be redeveloped into a residential project with commercial use on the first storey at a 2.8 plot ratio. DTZ Debenham Tie Leung is handling the tender for the property, which closes on March 30.

Admin
17-08-06, 17:28
Tender for Eng Lok Mansion draws 8 bids
Highest offer of $128m works out to new record of $1,130 psf ppr

By KALPANA RASHIWALA

THE tender for the freehold Eng Lok Mansion, near the Botanic Gardens, has attracted eight bids. And the highest offer - said to be about $128 million - works out to a record $1,130 per square foot per plot ratio.

The top bid for the Napier Road property is believed to have been placed by parties linked to former Parkway Holdings boss Tony Tan, working with Penang's Island Hospital group in which Mr Tan's family has a stake. Parkway Group is also understood to have placed a bid, of about $120 million.

Based on the $1,130 psf ppr top bid, the breakeven cost for a new condo would be about $1,500 to $1,600 psf.

If $1,130 psf ppr is indeed the highest bid and the property is awarded to the top bidder, it will pip the highest-ever unit land price for a freehold residential site in Singapore - $1,122 psf ppr that Hong Leong Group paid in April 1997 for Boulevard Hotel, which has been approved for redevelopment into a condo.

The highest-ever unit land cost for a collective sale so far is $1,093 psf ppr paid by Far East Organization in January 1997 for Scotts Tower.

Incidentally, Eng Lok's top bid also busts the recent high of $1,058 psf ppr set last month when Far East bought Angullia Mansion.

'But the difference is that the Angullia Mansion site can be redeveloped up to 36 storeys high, whereas the Eng Lok site has a 10-storey height limit. So the price for Eng Lok does seem high,' says a market watcher.

But others beg to differ. Wheelock Properties (Singapore) CEO David Lawrence, whose company was not among the bidders for Eng Lok, said: 'Our Grange Residences project has proved that the location is extremely popular.'

Mr Lawrence, who is also chairman of UK-based property consultancy Hamptons Group, said: 'Singapore is becoming increasingly attractive to invest in. I am surprised by the level of interest from UK, Irish and German investors asking me about investing in Asia, particularly Singapore. Already, I have an Irish group asking me if they can buy a lot of units in Scotts Square. Singapore is looking very attractive as an investment location for international investors.'

Besides often-cited factors like good government, 'Singapore is seen as a place where a lot of the emerging middle class money from China and India will go to. They see Singapore as a place that will do very well for the next 10 years', Mr Lawrence added.

Scotts Square is the new project that Wheelock will develop on the Scotts Shopping Centre and The Ascott serviced residences site.

The tender for Eng Lok Mansion closed on Tuesday. The other bidders are said to include CapitaLand, Lippo Group and Simon Cheong's SC Global.

Market watchers say Parkway Group's bid of $120 million is probably conditional on the site being re-zoned from residential to healthcare use, since it could then build an extension to its Gleneagles Hospital next door to Eng Lok Mansion.

The 70,810 sq ft Eng Lok Mansion site is zoned for 10-storey residential use with a 1.6 plot ratio (ratio of potential maximum gross floor area to land area) under Master Plan 2003. But marketing agent CB Richard Ellis (CBRE) was reported as saying in December last year that 'alternative development options could possibly be explored with the relevant authorities due to its strategic location'. At the time, it was suggested that alternative uses could include hospitals, medical suites or a hotel. BT understands that Eng Lok Mansion's owners submitted an application to the Urban Redevelopment Authority (URA) to explore some of these alternative uses, most likely hospital, but that URA recently rejected the application.

Admin
17-08-06, 17:32
Property
Published March 9, 2006


Not all en bloc sales fetch high prices
Market is segmented and upswing confined to selected projects, say property watchers


HOMEOWNERS thinking about cashing in on their properties through the hot collective sale market should not assume that every sale would fetch handsome returns.

Property consultants say that despite the recent highs reached for collective sales of properties, it is not an across-the-board phenomenon.

The recent sale of Eng Lok Mansion along Napier Road made waves, as the freehold property went for $138 million or $1,218 per sq ft per plot ratio (psf ppr) - making it the most expensive collective sale site ever. Far East Organization's $120 million, or $1,058 psf ppr land price last month, for Angullia Mansion also created a stir, as its price was 65 per cent higher than the $643 psf ppr that Wheelock Properties paid in December for Angullia View, just opposite Angullia Mansion.

A check of successful collective sales transactions that were publicly announced this year showed that over $1 billion worth of property, or around 10 sites, has been sealed to date. Over 25 sites have been launched for collective sale so far this year.

Owners excited

Knight Frank's executive director Foo Suan Peng estimates that 50 to 60 estates are considering going down the collective sale route, although not all will eventually take off.

'Because of a few high profile sales, owners are getting excited. Because they get excited, everybody starts exploring and putting their estates on the market,' he says.

Investment sales of property are seen by developers and big investors as a bellwether of confidence in the real estate market in the medium to long term.

While there's no denying that the market has taken a turn for the better, property watchers cautioned that it is still segmented and confined to selected projects.

As they say, property is all about location, location and location. But home sellers in the prime district 9 and 11 areas can't guarantee that developers will necessarily bite when offers are made.

'When you say prime, it must be around the stretch from Scotts Road and Orchard Road vicinity. Some district 9 and 11 are not that fantastic,' Jones Lang LaSalle's regional director and head of investments Lui Seng Fatt said.

He notes that some homeowners are seeking prices northwards of $1,000 psf ppr, which is not always realistic.

'Angullia Mansion by itself has factors that others cannot provide, because of its address, its being next to Four Seasons Park, and so on,' he explains.

But already industry insiders see a glut of collective sale candidates. 'To a certain extent, developers are inundated with sites. Over the next few months, they will perhaps become more choosy and the success rate will decrease,' cautions CB Richard Ellis' executive director Jeremy Lake.

Still, developers will compete for good sites as they look to replenish their landbank, especially before land prices rise even further.

'There's strong demand for good sites, so there's competition, which means that the price you pay may not be determined by what the owners want but what the next guy is going to bid,' Mr Lake says.

Besides the sale of Amberville, also to Far East recently, Mr Lui expects collective sales of other HUDC sites to be tough as developers don't favour large sites.

The strategy, he says, is for developers to go for sites with half a million sq ft of potential gross floor area or less, so that the project can be sold in one phase and the developers can move on to another project.

With the recent hike in development charge rates announced last month, property consultants say breakeven costs for developers are affected. The costs may be absorbed by the properties' buyers for a coveted site, but sellers might be forced to bear part of the burden when the collective sale market becomes a buyer's market.

Still, the consultants believe that the market fundamentals are there to allow the collective sales market to keep growing, albeit largely confined to the top-end market.

Foreign buyers

It helps that there is foreign buyers' presence. Knight Frank's Mr Foo believes that foreigners' willingness to buy will boost developers' confidence in offering higher land bids.

'The presence of foreigners in the market, whether they be buyers of new units or whether they be buyers of land, is a sign that the market is strong,' CBRE's Mr Lake concludes.

Admin
17-08-06, 17:39
Singapore
Published March 13, 2006


Property agents race to launch prime sites
Latest freehold plot at Skyline Angullia expected to fetch at least $100m


By KALPANA RASHIWALA


PROPERTY agents continue to rush launches of prime residential sites. Cashing in on its recent successful sale of Angullia Mansion, DTZ Debenham Tie Leung is releasing another plot in the location for sale - Skyline Angullia.


http://img19.imageshack.us/img19/4380/bt368780213032006di8.jpg (http://imageshack.us)
Angullia Mansion: Sold last month for $1,060 psf ppr. The nearby Skyline Angullia is targeting $1,073 psf ppr


The latest property, with a 35,810 sq ft freehold land area, should fetch at least $100 million, working out to $1,073 psf per plot ratio (psf ppr) inclusive of a development charge (DC) of about $7.6 million.

Angullia Mansion, sold last month to Far East Organization, fetched about $1,060 psf ppr including DC. That was a collective sale, whereas Skyline Angullia, completed in 1992, is held by a single party, Skyline Investment Holdings Pte Ltd, controlled by Kang Swee Liat and his wife.

They developed the property, completing it in 1992 and have kept it since for rental income. The boutique property group also developed houses along Barker Road in the 1980s.

The existing Angullia Skyline is a 14-storey tower comprising 22 apartments and two penthouses. It has achieved 'very high occupancy since its completion in 1992', DTZ said.

The site is zoned for 36-storey residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area). The site may be redeveloped into a new project with about 45 units averaging 2,000 sq ft, according to DTZ.

Property agents are racing to launch collective sales and other residential sites in Singapore's prime districts, as they ride on developers' current large appetite to replenish landbank in these areas. This is being fuelled by strong demand led by foreigners in the luxury housing sector.

Earlier last week, DTZ launched the tender for Hilltops Apartments in Cairnhill Circle and some adjacent terrace houses.

CB Richard Ellis is expected to launch soon the collective sale of Beverly Mai, an 80,000 sq ft freehold site in the Orchard Boulevard area, having secured the requisite minimum consent levels from owners. Sources said that the owners are hoping to achieve close to $250 million or $1,190 psf per plot ratio including DC.

And in the Grange Road area, BT understands that collection of signatures from Lucky Tower owners' is at an advanced stage. Astoria Apartments at Cairnhill Rise and Futura at Leonie Hill are among the other prime district sites expected to be launched this year.

DTZ director Tang Wei Leng said: 'There's a race to push out all the high end sites as we may not achieve our reserve prices as the market reaches saturation point.'

Competition among sites in the prime districts is set to intensify. 'Run of the mill sites will come under greatest pressure, whereas sites with some unique selling points may have some room still to ride on sentiment,' she added.

However, CB Richard Ellis executive director Jeremy Lake reasons that the profile of bidders for different-sized sites varies. 'Somebody who might bid for a $40 million site may not be interchangeable with a developer who can bid for a $200 million site. So while there may be quite a few sites, they may not necessarily be in direct competition for the same buyers,' he said.

'But clearly, developers faced with more choice may prefer to be slightly less aggressive than in the past. Buying interest is still quite strong, but going forward, the sites that will be successful will be the ones that are more desirable. If your site is less desirable, or overpriced, you may get left behind,' added Mr Lake.

Admin
17-08-06, 18:04
Published March 16, 2006


Duchess Court up for sale again

By KALPANA RASHIWALA


AFTER two earlier attempts at a collective sale in 1997 and 2000, the owners of Duchess Court in the Bukit Timah area are once again teaming up to sell their homes. This time, the price tag is lower, with marketing agent Credo Real Estate saying the expected figure is $100 million to $108 million.


http://img157.imageshack.us/img157/981/bt370526915032006ip3.jpg (http://imageshack.us)
Third try: The current expected price tag is between $100-$108 million compared to $160 million in 1997 and $130 million in 2000
This compares with price tags of $130 million in 2000 and and an even higher $160 million during the first attempt in 1997.

Based on the current price expectations, the land price for the 999-year leasehold property works out to between $563 and $601 psf of potential gross floor area including an estimated $20 million in development charges. 'At this price, the developer should be able to break even at about $880 to $925 psf or so for a new condo development on the site,' said Credo executive director Karamjit Singh.

The site is zoned for residential use with a 1.4 plot ratio and a five-storey maximum height. Mr Singh drew attention to two nearby low-rise units at Astrid Meadows on Coronation Road West which changed hands in December and January for $1,000 psf and $1,020 psf respectively - which he described as 'an impressive feat for a 16-year-old development'.

Assuming Duchess Court fetches $108 million, owners of the 36 townhouses and maisonettes stand to receive between $2.58 million and $3.5 million each - or about 75 per cent more than the $1.45 million to $2 million that they will individually fetch.

Given that Duchess Court has 36 owners currently, the 152,250 sq ft land area of the property works out to an average of 4,230 sq ft per owner. 'That's almost equivalent to the minimum size required to build one detached house and must make it among the highest land area per owner ratios among recent collective sales,' said Mr Singh.

The tender closes on April 18.

mr funny
17-08-06, 18:07
Who is afraid of the rate hikes?

Experts give their views how rising development charges will affect land sales

Weekend • March 4, 2006

shobha Tsering Bhalla
[email protected]

EVEN as market watchers warn of a slow down in en-bloc sales and the redevelopment of certain areas of Singapore such as the Central Business District (CBD) following the recent hike in development charge (DC) rates, some property developers say they would not be deterred if the properties were in the right location.

They will "factor in the higher DC rates in their bid prices and also be very eager to lock in the prevailing DC rate once they have bought the site", said Mr Jeremy Lake, executive director, Investment Properties, CB Richard Ellis.

Development charge refers to the tax imposed by the Government to enhance land use. DC rates, which are revised every six months, are closely tracked in the industry as they reflect property values and have a direct impact on the breakeven costs of developers seeking to redevelop sites.

A senior executive from one of Singapore's top four property developers said if the property were in a prime area such as Bukit Timah, Districts 9 and 10 and the East Coast, they would continue to buy.

"The big boys will not see the rate hikes as an obstacle but the smaller players might. We're still 40 per cent off the peak (in property prices) so big developers will look at the potential not at the cost."

But, the buying would not continue at the same pace as they would be more selective," said the executive.

In agreement, Knight Frank's head of research & consultancy Nicholas Mak said the higher rates would mean owners would get less "so they may be less eager to sell."

Underscoring this view is the fact that the prime districts — the epicentre of such sales — have seen some of the biggest DC rate hikes. They range from an increase of 7 per cent in the Oxley and Leonie Hill area to 19 per cent in the Ardmore Park/Draycott area.

The quantum of the rate hikes this time was a shock to industry watchers who say they are much higher than the rise in property prices over the last two quarters.

"I was taken aback because the transacted prices have only gone up by 0.8 and 0.9 per cent for landed and non-landed properties. Whereas the DC rate hike for non-landed residential property was an average of 9.4 per cent and 4.6 per cent for landed," said Mr Colin Tan, head of research & consultancy at property consultancy Chesterton International.

"The DC rate is supposed to take into account the transacted prices — this rate hike is out of sync as it's more than twice that of property price increases. So what is the basis for calculating the DC rate?" he said.

Some of the DC rate hikes announced this week are the biggest in six years. The highest increases have been for non-landed residential rates in the CBD — by as much as 20 to 33.3 per cent, which experts say could deter owners of old office buildings from developing them for residential use.

Explaining the rationale for the rates, a spokesman for the Chief Valuer who sets the rates said as these rates need to closely reflect the land value within each sector at the time of review, "they cannot be merely adjusted based on property price index (PPI)".

"The adjustments are not even for all the sectors due to the different levels of market activities and interests across all sectors. If the rate hike for a particular sector is steeper than the actual market trend it could be because the previous rate adjustment for that sector was too conservative," said the spokesman.

Still, the stiff rate hike has few fans. "It's a zero sum game if the DC quantum goes up and the absolute land value and residual land value that owners can look forward to receiving would go down correspondingly," said Mr Karamjit Singh, executive director of Credo Real Estate which specialises in collective sales.

But while the rate hike will cause a slow down in en bloc sales, it could have the beneficial effect of slowing down the "frantic" pace at which land is being bought by developers. "They would need to slow down by mid-year or the third quarter as the pace at which land is being bought is unsustainably high," said Mr Singh.

"Historically, the market has only been able to absorb that many units but the amount of land that has been bought over the last few months show that they would yield far more units than can be absorbed."

mr funny
17-08-06, 18:21
Amberville sale is unlikely to be repeated, say analysts

AS the first HUDC estate to be sold through the en-bloc route, the Amberville acquisition by Far East Organization earlier this week is a milestone in the collective sale market and no doubt a shot in the arm for owners of aging HUDC estates.

But while the price set by Far East's $396 per sq ft bid for the estate is higher than expected, other HUDC owners should not expect a similar price — or even similar interest — for their estates say experts.

Amberville, which cost Far East a total of $183 million, is the first privatised HUDC estate to be sold en bloc and is believed to have attracted bids from three other major developers — City Developments, MCL Land and Wing Tai.

The 218,435 sq ft site can be redeveloped into a condo with 530 units measuring 1,200 sq ft on average.

Far East is estimated to have paid a development charge of $35.2 million and $23.8 million to top up the site's lease

While it is definitely a "benchmark price", the amount that Far East paid for Amberville "can't be used as a referral point for the prices of other HUDC estates because Amberville was unique", said Mr Foo Suan Peng, executive director & head of investment sales at Knight Frank which brokered the sale.

None of the other prospective HUDC estates are in as desirable a location as Amberville with its "breathtaking sea view and long frontage", he said.

Agreeing, Knight Frank's head of research & consultancy Nicholas Mak said other HUDC estates were not very near MRT stations, were surrounded by HDB estates and without any sea views, "so definitely the price would be quite different".

mr funny
17-08-06, 18:22
Property
Published March 28, 2006


Newton Meadows up for en bloc sale


THE en bloc fever is infectious - this time, the owners of the freehold Newton Meadows have caught it. Sources say the price expected is about $75 million, or about $680 per square foot of potential gross floor area inclusive of an estimated $6.9 million development charge.


Based on this, the breakeven cost for a new condo is about $900-$950 psf, say analysts. The 42,886 sq ft elevated site is zoned for residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area). The plot can be redeveloped into a 36-storey condo with about 95 units averaging 1,300 sq ft each.

Assuming the 10-storey Newton Meadows does fetch $75 million, owners of the existing 28 units stand to receive about $1.4 million to $3.5 million in proceeds, depending on the size of their units, which range from about 1,200 to 3,600 sq ft. The sums the owners will receive are roughly 60 per cent higher than what the apartments would have fetched if sold individually.

Jones Lang LaSalle is marketing Newton Meadows through an expressions of interest exercise that closes on April 27.

mr funny
17-08-06, 18:23
Property
Published March 28, 2006


Centrepoint highest bidder for SingTel site
Award delayed as SingTel seeks to reduce premium payable to state


By KALPANA RASHIWALA


CENTREPOINT Properties has emerged as the highest bidder for SingTel's former warehouse site on West Coast Road, but its award has been delayed as SingTel is seeking to reduce the amount of differential premium (DP) payable to the state for the change of status of the site, BT understands.


Sources say Centrepoint's top bid of about $220 per square foot per plot ratio (psf ppr) is inclusive of an estimated $40 million payment to the state.

The payment to the state comprises an estimated $30 million DP for a change in the use of the site from industrial to residential and about $10 million as lease upgrading premium, to top up the site's lease from the remaining tenure of about 66 years to 99 years.

Provisional approval has been granted for the site to be redeveloped into a 225-unit, five-storey condo, with a 1.4 plot ratio (ratio of potential gross floor area to land area).

Originally, the successful bidder was supposed to make the payment due to the state. However, Centrepoint's bid is for a lump sum of about $220 psf ppr, which includes the land price payable to SingTel as well as the DP and lease upgrading premium payable to the state. So if SingTel is successful in negotiating a lower DP, Centrepoint will accordingly adjust upwards the land price component it will pay to SingTel.





As a market watcher put it, 'Either way the total cost to Centrepoint is locked at $220 psf ppr. So if there is a reduction in DP, SingTel will get a higher price for its land. Hence, SingTel has an incentive to try and negotiate the DP downwards.'

Credo Real Estate, which handled the tender for the West Coast site, declined to comment when contacted.

BT understands a similar situation may arise for SingTel's site at the corner of Hillcrest and Dunearn roads, currently on the market.

Here, the successful bidder will pay the state almost $40 million, comprising a $35 million DP to change the site's status from 'utility' to 'residential' and around $5 million for upgrading the property's lease to 99 years.

In this case, industry watchers say that although the site is currently zoned 'utility', the price at which SingTel bought the property - which it has been using as a training centre - worked out to a price that reflected commercial land use at the time. Hence, the DP payable should be calculated on the basis of change of use from commercial to residential and not from utility to residential, goes the argument. The former scenario should result in a substantially lower DP.

Provisional approval has been granted to redevelop the Hillcrest property into 160 strata terrace houses with a 1.4 plot ratio, although market watchers suggest the successful bidder could instead apply to develop a five-storey condo with a 1.4 plot ratio.

mr funny
17-08-06, 18:43
Property 2006
Published March 30, 2006


To sign or to wait is the big question

By JEREMY LAKE


THE collective sale market has been very active in the last nine months and newspaper headlines reporting landmark sales like Habitat 2 ($103.8 million), Amber Ville ($183 million) and Eng Lok Mansion ($138 million) are a regular occurrence.


http://img224.imageshack.us/img224/4974/bt376471024032006tc0.jpg (http://imageshack.us)
Landmark deal: The recent sale of Eng Lok Mansion for $138 million made the headlines


Owners of properties with collective sale potential are now rushing to get themselves ready to sell and capitalise on the current bullish sentiment. Most of the leading property consultants and lawyers with collective sale experience are very busy at the moment managing and processing these projects.

Despite the near-perfect market conditions for selling a collective project, in many cases it is still taking a long time to secure the required 80 per cent mandate. Legislation is in place requiring the 80 per cent to be achieved within 12 months of the first owner signing the collective sale agreement. This was put in place in May 2004 to stop the exercise from dragging on indefinitely and causing prolonged inconvenience and uncertainty to owners while the en bloc is underway.

Accordingly, the property consultant must secure the 80 per cent within 12 months or else the exercise has to be restarted. It is not uncommon to hear owners ask if the collective sale agreement validity period can be extended but the answer is no, it cannot.

It is interesting to note that owners are currently divided into two different groups, with opposite outlooks. Most recognise that land values have risen substantially and it is a good time to sell. They are mindful of the tidal wave of sites currently coming onto the market and want to ensure that they are not left behind.

Beginning of a recovery

For some of these projects, it is also their second or third attempt and the lessons of the previous unsuccessful attempts have been learnt.

For this reason, they are willing to come forward to sign the collective sale agreement quickly. However, some owners feel that Singapore is at the beginning of a long-term property recovery and that land prices will continue to rise indefinitely. For this reason, they feel that the collective sale should be delayed so that a higher price can be achieved in the future. Thus, they are not willing to sign the agreement.

This difference in opinion is due to the different risk/ reward profiles which each of these two groups of owners have. Some owners judge that the upside of waiting is greater than the downside of waiting, ie, if the collective sale is delayed, the land price will rise and they will get a higher price. They consider the risks of waiting, namely that developers may commit to buy other sites or that bird flu could derail the market, are small and acceptable.

Conversely, most owners feel that the collective sale prices which are achievable today are sufficiently attractive and they would like to sell now. They are mindful that the recovery in 1999/2000 was short-lived and that developers have limited budgets. Accordingly, they consider that it is not worth taking the risk of waiting.

In order to facilitate the signing process, there needs to be some bad news reported in the media to balance all the good news. Owners are influenced by sentiment and while sentiment remains good, the signing process will continue to be frustratingly slow.

The writer is executive director, investment properties, CB Richard Ellis

mr funny
17-08-06, 19:01
Published March 30, 2006


Pinetree plans en bloc sale with a twist

By KALPANA RASHIWALA


MOST of the owners at the 50-unit Pinetree Condominium at Balmoral Park would end up out of pocket if they did a collective sale today, as they had bought their apartments at the peak of the market.


http://img224.imageshack.us/img224/370/bt379124629032006vx0.jpg (http://imageshack.us)
Pinetree Condo: bidders will have to provide an exchange unit in the new project on the site to all owners who would suffer a financial loss


So their property agent Jones Lang LaSalle is proposing a collective deal in which bidders will have to provide an exchange unit in the new project they build on the site to all owners who would suffer a financial loss.

Those who will not incur a loss would have the option of receiving a cash payment from the developer.

Real estate lawyer SK Phang says current en bloc sale legislation provides that in a collective sale where the majority consenting owners are given exchange units in a new development, the minority who object to the sale must be offered a cash payment option. However, the minority still have grounds to object if they suffer a financial loss.

Under the legislation, an owner is deemed to have incurred a financial loss if the sale proceeds, after any deduction allowed by the Strata Titles Board, are less than the price paid for the property.

Another basis for objection by a minority owner to a collective sale is if the sale proceeds are insufficient to redeem the outstanding mortgage on the property.

JLL estimates that the current-day value of an exchange unit in a new development at the Pinetree Condo site would be roughly 30-40 per cent more than what the units in the present condo would fetch if sold individually today.

Owners who want a cash-out option would probably reap a lower collective sale premium of about 25 to 30 per cent. But as a market watcher points out, this premium may not be big enough to erase the financial loss for some of the owners.

Even if the financial-loss cases agree to the exchange option, other hurdles may await them - such as the expense of renting a property while they wait for the new project to be built on the current site. Likewise, owners who are renting out their apartments will have to forego rental income while the property is being redeveloped.

Owners will also have to make arrangements with their bank to roll over the mortgage to the new property, failing which they will have to redeem their existing mortgage.

Still, JLL says its proposal provides an exit opportunity for owners to move on, and that otherwise they may have no feasible way of exiting their investment under current en bloc legislation.

The original developer of Pinetree Condominium, Land Resources Group, still holds a substantial number of the project's 50 apartments, BT understands. The majority, however, are held by other individuals.

JLL is inviting bidders to take part in an expression-of-interest exercise closing on April 27. They will have to indicate their bids providing at least two options - an exchange unit, and cash for owners who want out.

Bidders are also welcome to list a third option - offering the owners a unit in a completed project by the developer nearby.

'This is the first time where competitive bids are being invited for a collective sale involving both cash and exchange options,' said JLL's regional director and head of investments Lui Seng Fatt.

Pinetree Condo is on a freehold site of 41,361 sq ft, zoned for residential use with 1.6 plot ratio and a 12-storey height limit. Bidders can also offer to buy four adjoining semi-detached houses, which would result in a bigger site of 50,329 sq ft. This would be big enough to house a new development of about 60-70 apartments averaging 1,100 sq ft, JLL says.

mr funny
17-08-06, 19:27
Property
Published April 4, 2006


Trading places: a spin on en bloc sales
Collective exchange gives owners an instant upgrade, but it is not without problems, writes KALPANA RASHIWALA



A VARIATION of the popular collective sale called the collective exchange has been in the news lately. First the owners of Paterson Lodge concluded such a deal. And last week it was announced that the owners of Pinetree Condominium are seeking expressions of interest from developers keen on a similar proposal.


http://img224.imageshack.us/img224/8449/bt381862004042006te8.jpg (http://imageshack.us)
Arriving at a win-win solution: The most practical way to do a collective exchange is to get unanimous approval from all owners - whether it is for an all-exchange deal as in the case of Paterson Lodge (above), or one where there is the option of an exchange unit or a cash-out payment, as in Pinetree Condo


Basically, a developer, instead of buying the land outright from the owners, agrees to give them replacement units in the new project to go up on the site.

This has been touted as a 'win-win solution', with owners getting a new unit in the same location and the developer not having to pay upfront for the land, thereby saving on costs.

Such deals are not new, says CB Richard Ellis executive director Jeremy Lake. 'However, collective exchange transactions are few and far in between and not without their own problems,' he says. 'For a start, for such deals to work, you must have owners' unanimous approval, which means there's a higher chance of success if the number of owners involved is small and they are like-minded.'

Agreeing, Jones Lang LaSalle (JLL) regional director and head of investment sales Lui Seng Fatt does not expect the trend to take root. 'Traditional collective sales will continue to dominate because these can be done with just the 80 per cent consent level,' he says.

However, some owners and property consultants are undeterred, as the collective exchange can solve several problems.

In the case of Paterson Lodge, the collective exchange with a subsidiary of mainboard-listed Ace Dynamics was structured as a solution for the property's owners, who faced the usual difficulty in a collective sale - finding a replacement property of the same size in the same location with their proceeds.

And in the case of Pinetree Condo at Balmoral Park, the collective exchange is mooted as a way to reduce the loss for most owners, who would be out of pocket in an en bloc sale today because they bought their apartments at the peak of the market.

How do the numbers stack up?

A developer doesn't have to fork out a large amount to buy the land upfront - basically he only has to spend money on construction, so he saves on finance costs and cash outflow. The developer then splits some of this saving with the owners by offering them a higher collective sale premium through a replacement property.

JLL's Mr Lui, whose firm is marketing Pinetree Condo, estimates the current value of an exchange unit at some 30-40 per cent more than a unit in the existing development would fetch if sold individually today. Owners who want a cash-out option would reap a lower collective sale premium of some 25-30 per cent.

Some of the owners could still make a financial loss, albeit a lower one. Nonetheless, the proposal provides an exit opportunity for those willing to take a haircut and move on.

The developer makes his profit by building more and higher value units than those in an existing project. After giving the owners their exchange units, the developer is free to sell the remaining units for a profit.

But for a collective exchange to work, owners must agree unanimously on the structure of the deal, as Knight Frank executive director Foo Suan Peng, whose firm brokered the Paterson Lodge transaction, explains. This is unlike the typical collective sale, where consent from majority owners controlling at least 80 per cent of share value is sufficient, subject to approval from the Strata Titles Board (STB).

'Even in a normal collective sale, the 80 per cent that agree to the deal must include all financial loss cases since anyone making a loss will have grounds to block an en bloc sale when it comes up for hearing at the STB under current legislation,' says Mr Foo.

The same law also provides that in a collective sale where the majority consenting owners are given exchange units in a new development, the minority who object to such an arrangement must be offered a cash payment option.

This is why, in the case of Pinetree Condo, developers bidding for the property will have to provide owners with a choice of a one-for-one exchange or a cash-out option.

And the deal can still be blocked at the STB hearing if the minority argue that the cash-out price is not fair value. As Credo Real Estate managing director Karamjit Singh explains: 'Therein lies a challenge - what value should be used to determine the fair cash-out compensation for such dissenting owners?'

Knight Frank's Mr Foo says the most transparent method is to have a tender and use the highest bid as the basis for the cash-out price.

But developers not willing to provide both exchange and cash-out options will not participate in such a tender. To avoid all this hassle, consultants say the most practical way to do a collective exchange is to get unanimous approval from all owners - whether it is for an all exchange deal like Paterson Lodge, or one where there is the option of an exchange unit or a cash-out payment, like Pinetree Condo.

Even then, a host of problems can bedevil what is conceptually a win-win proposition, says Credo's Mr Singh. 'The moment owners get down to reviewing the legal paperwork, they can get overwhelmed by the issues they would have to wrestle with, and often then resort back to an outright sale,' he recounts from a recent case he worked on in the River Valley area.

There are also other issues.

Owners may have to redeem outstanding mortgages with banks when a developer starts work on their site - even if the land is not transferred to that developer until the new project is completed and those owners have received the titles to their new apartments. Owners will also have to factor in the rental expense they will incur while waiting for the site to be redeveloped.

On the other side of the fence, a contractor/developer who participates in such a scheme will have to find a financier willing to give him a construction loan without the security of the land to be developed.

'One way would be for the contractor, if it's an established company, to give a corporate guarantee tied to other assets of the company,' suggests Mr Foo.

mr funny
17-08-06, 19:35
Beverly Mai at Tomlinson Rd up for en bloc sale at $238m

23 Mar 06


BEVERLY Mai, a 32-year-old residential development in Tomlinson Road, is up for collective en bloc sale by public tender. And the price tag: $238 million.


Jeremy Lake, executive director, investment properties at CB Richard Ellis, which is also the marketing consultants, pointed out that the site is across the street from the upcoming St Regis Residences.

He said that St Regis is expected to fetch close to $2,600 per square foot.

'The upcoming launch of St Regis is creating a buzz in the area. That, coupled with a clear, unobstructed view of One Tree Hill, makes Beverly Mai an attractive site.'

At $238 million, the price of the site based on its plot ratio of 2.8 is $1,184 psf per plot ratio, inclusive of an estimated development charge of $16.8 million.

In August 2005, a unit was sold for $2.5 million. Before this, the highest price was $1.79 million in March 2004. If the asking price is achieved, owners of the 52-unit development stand to make up to a 60 per cent premium or $4.4 million per unit.

The 76,888 sq ft site can be developed up to 36-storeys and have up to 107 units if each is 2,000 sq ft. The breakeven price for the future development is expected to be $1,550 psf.

Also for sale, but in a vastly different price bracket, is Sunshine Regency. This new freehold development on Rambai Road in the East Coast, developed by Fragrance Homes, will be launched this weekend at an average $554 psf.

The marketing consultant is Real ONE International and it says a range of unit sizes from one to four bedrooms (452 sq ft to 603 sq ft) are being offered with the smallest unit starting at $361,000.

By ARTHUR SIM

mr funny
17-08-06, 19:39
Thomson Rd properties up for collective sale
3 developments have combined freehold land area of 137,500 sq ft

By ALEXANDRA HO


CAPITALISING on the momentum for collective sales, three separate residential developments off Thomson Road are joining forces to put the properties up for en bloc sale.


The properties are Lock Cho Apartment, Comfort Mansion and a walk-up apartment block at Jalan Datoh and Jalan Raja Udang.

In terms of permissible gross floor area for redevelopment, the properties together could be the largest collective sale launched so far this year.

The three properties together have a freehold land area of around 137,500 square feet.

A piece of state land of 40,500 sq ft could be incorporated into the project, boosting the total to about 178,000 sq ft.

In terms of potential GFA, it comes up to 500,000 sq ft, given the site's plot ratio of 2.8 and a height control of 36 floors.

In their first collective sale attempt, the owners are hoping to get $160 million for the combined site, or around $350 per sq ft per plot ratio, factoring in the development charge and state land costs of $14 million.

If successfully sold at $160 million, the owners are expected to get between $300,000 and $500,000 each, a 60 to 80 per cent premium over individual sale.


'The launch of the Lock Cho Apartment and its adjoining developments marks the first large-scale residential collective sale site in the Thomson Road vicinity in recent years,' says Tan Hong Boon, executive director of Credo Real Estate, who is handling the sale.

He added: 'The launch of this centrally located site is timely as the locality experiences an almost absence of such a coveted large site, which many developers are seeking to acquire.

'We feel it would be more appealing to developers if we can offer them a critical mass in size with regular plot shape for them to enjoy greater efficiency and economies of scale in construction and marketing.'

Mr Tan believes that such a large site will attract listed companies that are at least mid-sized.

He reckons developers can break even on the site at between $580 and $600 per sq ft of potential saleable floor area, with 400 apartment units of about 1,200 sq ft each.

At present, Lock Cho Apartment is a 140-unit development, Comfort Mansion has 17, while the walk-up apartment has eight units.

The apartments are around 30 to 40 years old, Credo says.

The tender for the properties will close on March 27.

mr funny
17-08-06, 19:43
Published February 8, 2006

Alexandra Centre put up for collective sale

ALEXANDRA Centre has hit the market for collective sales, making an entry with a $40 million asking price.

$40m asking price: The existing two-storey building, which is about 25 years old, houses 12 ground-floor shops and 12 apartments
This works out to $270 psf per plot ratio inclusive of an estimated $1.153 million development charge.

The freehold property on Alexandra Road is zoned for residential with commercial use on the first storey. It may be redeveloped to a height of four storeys with a maximum 3.0 plot ratio - the ratio of potential gross floor area to land area.

Alexandra Centre has a land area of 50,838 sq ft. The existing two-storey building, which is about 25 years old, houses 12 ground-floor shops and 12 apartments.

Owners controlling more than 80 per cent of share values have consented to the collective sale, which is being handled by CB Richard Ellis.

Based upon $40 million, apartment owners will receive about $1.1 million each, and the shopowners about $2.1 million each.

'This is about 100 per cent more than the price which the units can achieve if they are sold individually,' says CBRE executive director Jeremy Lake.

Alexandra Centre is within walking distance of Queenstown MRT Station. Nearby landmarks include the Queens condo, Ikea and The Anchorage. The tender for Alexandra Centre closes on March 8.

mr funny
17-08-06, 19:44
Published December 14, 2005

En bloc sales hit 5-year high of $1.9b
But rapidly rising price expectations among owners could dampen market next year


By KALPANA RASHIWALA

(SINGAPORE) With just two weeks to go before year's end, the value of collective property sales done so far has hit $1.9 billion. This is more than double the $722 million chalked up for the whole of last year and is the highest level in at least five years.

The strong uptrend captured in the latest figures compiled by CB Richard Ellis and released to BT reflects a happy convergence of the price expectations of both sellers and buyers.

Owners, however, are becoming more optimistic in their price expectations and there's a risk that they may raise their asking prices too fast for developers. This, warns CB Richard Ellis executive director Jeremy Lake, could significantly dampen collective sales next year.

Agreeing, Credo Real Estate executive director Melvin Poh says many of the deals being structured now are based on future pricing. He also points to a substantial supply of en bloc properties at various stages of readiness in the prime districts like Cairnhill, Angullia Park, Orchard Boulevard, Kim Yam, St Thomas Walk, Ardmore Park and Nassim.

'There's a lot of supply coming out. Not all will be sold. Developers don't have unlimited funds. So the key is speed. The race is on to get your collective sale organised quickly and put it on the market early.'

Collective sales, under which the owners in an estate team up to sell their homes to a developer, have been a closely watched phenomenon among Singapore property investors since 1994. These en bloc deals have arisen due to an increase in plot ratios, which specify the intensity permitted by the planning authority for a property development on a site.

This has boosted the redevelopment potential of sites, creating an opportunity for owners in an estate to get a higher price or premium if they join forces and sell their properties to a developer instead of going it alone. With improving sentiment, owners' expectations of this 'collective sale premium' have risen.

'Whereas a premium of 30-plus per cent was enough 12 months ago, you now need to look at about 40 to 50 per cent to stand a good chance of getting owners to agree to a collective sale,' says CBRE's Mr Lake.

There have been two bouts of en bloc fever - from 1994 to 1997, and again in 1999-2000. Home owners and property agents hope the current wave will not be short-lived.

Highlighting a key factor behind the impressive performance so far this year, Mr Lake says: 'For many of the deals done this year, the process of collecting signatures from owners began in 2004 or the early part of this year, before sentiment started to improve. So these properties were put on the market with more realistic price expectations from owners.'

On the demand side, developers have raised the prices they are prepared to pay on the back of improving sentiment. The strong demand they have enjoyed from home buyers in the luxury residential segment has led them to speed up replenishing their land banks with prime freehold sites. Collective sales are an excellent source of such supply, notes Mr Lake.

He cites a couple of examples of notable deals. Habitat II, sold in September this year, fetched $103.88 million, surpassing the owners' reserve price of $86 million set last year.

Likewise, Belle Vue was sold in October for $227.28 million, again exceeding the reserve price of $190 million agreed upon by the owners last year. 'Right now, it's competition among developers that has led to reserve prices being surpassed. In the next stage, we'll see whether developers are prepared to pay the higher reserve prices being set by owners,' says Mr Lake.

Owners are certainly starting to become more confident about asking prices. Says DTZ Debenham Tie Leung director Tang Wei Leng: 'In the past few weeks, we've seen cases of owners backing out from prices they had agreed to earlier in their collective sale agreement and jacking up reserve prices by about 10 to 40 per cent.'

This has been partly triggered by last week's tender for the landmark Orchard Turn site, which may include a residential component. It fetched a bullish top bid.

'Basically, we have owners saying things like, 'If a 99-year site (Orchard Turn) can fetch $1,020 psf per plot ratio, surely our plot which is also in the prime district and is morever freehold, should be able to sell for much more than the $800 psf ppr we signed up for',' says Ms Tang.

mr funny
17-08-06, 19:45
Wee Cho Yaw firms top en bloc deals
They account for $485m or 25% of $1.9b in collective sales this year


By KALPANA RASHIWALA


COMPANIES in the stable of United Overseas Bank chairman Wee Cho Yaw have been the biggest buyers of collective sale sites this year. United Overseas Land, United Industrial Corp, Singapore Land, Kheng Leong and OUB Centre Ltd have snapped up about $485 million of such properties, or a quarter of the $1.9 billion of collective sales that have changed hands in 2005.

The en bloc sites clinched by companies in Mr Wee's stable include Maryland Park in Katong, Eng Cheong Tower in the Beach Road area, Bo Bo Tan Gardens/Mansion off Kim Tian Rd, Parry Gardens, Oasis Garden in Paya Lebar and a collective sale at Minbu Rd in the Balestier area.

Other big shoppers who have picked up sites in the en bloc market this year include Wing Tai, Sim Lian, MCL Land and Bukit Sembawang. Wing Tai clinched two prime district sites - Belle Vue at Oxley Walk for $227.28 million and Phoenix Mansion in Cairnhill for $57.9 million.

MCL Land bought Balmeg Court atop a hill in Pasir Panjang and Fernhill Place.

The most expensive collective sale site this year in terms of unit land price was Habitat II at Ardmore Park. Wheelock Properties paid $876 per square foot per plot ratio for the site in September this year, about 30 per cent more than the $671 psf ppr that nearby Falcon Crest fetched a year earlier.

The most expensive collective sale site this year in terms of unit land price was Habitat II at Ardmore Park, clinched by Wheelock Properties

Another prime district site, Belle Vue in Oxley Walk, sold for $666 psf ppr this year, or 35 per cent higher than the $492 psf ppr that Quelin Gardens in the St Thomas Walk area went for last year.

However, such increases in land prices were exceptional. Most en bloc sites sold this year registered much more modest increases in land prices, property consultants say.

An interesting deal this year was the conclusion of the maiden collective sale of a 99-year property - Eng Cheong Tower in January.

Subsequently, only one other 99-year property has changed hands through a collective sale, Evian Condominium in Holland Rd, although two more are still on the market - Waterfront View facing Bedok Reservoir and Amberville in Katong, both privatised HUDC estates.

Basically, developers who buy such sites will have to pay a sum to the state to top up the lease of the site to the original 99 years, besides the usual development charge/differential premium to tap a higher plot ratio. 'So there are two sets of payments the developer has to make to the state, leaving less money that it can offer to the owners. That reduces the incentive for owners to go en bloc for 99-year estates compared with freehold ones,' a property consultant said.

As well, many of the privatised HUDC estates are huge, with hundreds of owners. This makes it harder to get the minimum 80 or 90 per cent consent levels for an en bloc deal.

Also, because these sites are huge - Waterfront View, for instance, can be developed into a new project with about 1,400 units - developers are more cautious when bidding, because of the risk of being stuck with a big project for years, especially if oversupply develops in the area.

'This again translates to lower bids from developers for such sites, reducing the incentive for owners to agree to a collective sale,' said a property consultant.

mr funny
17-08-06, 19:49
Published January 11, 2006

Angullia Mansion up for collective sale again
Owners said to be asking for $108m, slightly more than the top bid in 1999

ANGULLIA Mansion, a stone's throw from Orchard MRT Station, is back on the collective sale market - and this time the owners are said to be asking for $108 million or about $960 psf of potential gross floor area including a development charge of about $12.5 million.

Owners of 20 of the 21 apartments are understood to have signed the collective sale agreement. The last owner is expected to do so soon.
This is slightly more than the $105 million top bid the freehold property drew when it was previously put on the market in late 1999. The requisite approval level from majority owners could not be secured then. But this time around, owners of 20 of the 21 apartments are understood to have signed the collective sale agreement at a price of about $108 million. The last owner is expected to do so soon.

Keck Seng group, which is said to own four apartments at Angullia Mansion, has consented to the collective sale.

A price tag of $960 psf per plot ratio (psf ppr) is about 10 per cent higher than the highest unit land price fetched for a collective sale last year - $876 psf ppr for Habitat II. However, DTZ Debenham Tie Leung, which is marketing Angullia Mansion, has set its sights on an even higher benchmark - the $1,020 psf ppr at which the 99-year leasehold Orchard Turn site was sold to CapitaLand and Sun Hung Kai Properties last month.

CapitaLand has since given a breakdown of its bid, imputing a land price of $1,130 psf ppr for the project's retail component which will make up 70-75 per cent of total gross floor area, while the land value for the residential component is a lower $700 psf ppr.

Angullia Mansion has a land area of 44,730 sq ft. The site is zoned for residential use with a 2.8 plot ratio under Master Plan 2003. The maximum height is 36 storeys.

The site can accommodate about 56 units averaging about 2,000 sq ft. DTZ is expecting strong demand for the site given the improved take-up rate for luxurious and lifestyle apartments. In the vicinity, units in SC Global's BLVD project fetched prices of as high as $2,200 psf in October last year, DTZ pointed out in a statement.

The tender for Angullia Mansion closes on Feb 9.

mr funny
17-08-06, 19:50
The Vermont up for collective sale
Tender for the freehold site closes on March 3

By KALPANA RASHIWALA

THE owners of The Vermont at Peck Hay Road in the Cairnhill area are the latest to put up their prime district homes for collective sale, tapping the current uptick in the luxury residential market.

The Vermont comprises two apartment blocks at 9 and 11 Peck Hay Road in the Cairnhill area. The project was built in the mid-1980s.
The indicative price for the freehold Vermont is about $76 million, translating to $750 per square foot of potential gross floor area inclusive of an estimated development charge of $9 million. Based on this, a new condo on the 40,375 sq ft freehold site could break even at about $1,100 psf, say analysts.

CB Richard Ellis, which is handling the sale of The Vermont, says recent collective sale transactions in District 9 include Emerald Lodge at $803 psf per plot ratio (psf ppr) and Habitat II at $876 psf ppr.

The Vermont site is zoned for residential use with a 2.8 plot ratio and a maximum height of 20 storeys under Master Plan 2003.

The tender for The Vermont closes on March 3.

Property agents and home owners in the prime districts have been busy launching collective sale tenders, riding on the current upturn in sentiment in the luxury housing segment. That has improved developers' appetites for replenishing their landbanks.

Recent launches include Eng Lok Mansion near Botanic Gardens, Angullia Mansion near Orchard MRT Station and Kim Yam Mansion off River Valley Road. In addition, there is a slew of properties at various stages of readiness for an en-bloc sale launch in the prime districts like Cairnhill, Angullia Park, Orchard Boulevard, River Valley, St Thomas Walk, Ardmore Park and Nassim, say property consultants.

With a relatively huge potential supply of en-bloc sites slated for release this year, and finite demand from developers, the race is on to get collective sales organised quickly and tenders launched as soon as possible.

The Vermont comprises two apartment blocks at 9 and 11 Peck Hay Road. The project was built in the mid-1980s.

mr funny
17-08-06, 19:51
Published January 17, 2006

Pasir Panjang Hill site up for en bloc sale

A 32-UNIT four-storey apartment building at Pasir Panjang Hill is up for collective sale with an asking price of $28 million for the freehold 63,707 sq ft site.

Based on a plot ratio of 1.4 and an additional development charge of about $5.8 million, the site should cost $370 per square foot per plot ratio, and the breakeven cost will be around $660 psf per plot ratio, according to Jones Lang LaSalle's regional director and head of investments, Lui Seng Fatt. The firm is also the sole marketing agent for the property.

Last month, MCL Land bought Balmeg Court, also in Pasir Panjang, for $79.2 million. This works out to $340 psf per plot ratio for the 182,555 sq ft site. In the same month, Hoi Hup launched the Foliage, an 88-unit freehold condominium off Pasir Panjang Road, at an average $608 psf.

A new residential development of up to 89,190 sq ft of gross floor area with a maximum building height of five storeys can be built on the Pasir Panjang Hill site, although Mr Lui points out that approval from the relevant authorities and a development charge will apply.

On the renewed interest in en bloc residential sites - there were over 30 in 2005 - Mr Lui believes there is still opportunity to 'unlock the value of old and outdated property'.

He added: 'The market value of the apartments at its current stage of obsolescence can only fetch a low market value reflected in the state of the property. Through the collective sales process, investors will be prepared to pay a higher value for the new apartments. In short, the difference between the two will be exactly the premium which the existing owners will be enjoying through the collective sale.'

mr funny
17-08-06, 19:56
Published January 12, 2006

Braddell Park, Telok Kurau sites go en bloc
11 Kampong Glam shophouses also among properties put on market


By KALPANA RASHIWALA

RIDING on the current improvement in property sentiment, several investment-sales properties came on the market yesterday.

They include two collective sales at Braddell Park and Lorong K Telok Kurau. Both are offered for sale in separate tender exercises.

As well, a six-storey serviced apartment in the Tiong Bahru/Outram area is going on the block. And in the Kampong Glam area, the Urban Redevelopment Authority (URA) is auctioning 11 unrestored conservation shophouse lots on March 8. The shophouses will have to be restored and are being sold on a 99-year leasehold tenure.

In May last year, URA auctioned 10 parcels of unrestored conservation shophouses. The sale prices ranged from $360,000 to $600,000 per parcel, or $295 per square foot to $440 psf of site area.

CB Richard Ellis, which is marketing Braddell Park, says the property is expected to achieve $42 million. This works out to about $330 psf of potential gross floor area (GFA).

No development charge will be payable to tap the full development potential of the 91,361 sq ft freehold site as the location has a high base density equivalent to a 2.072 plot ratio (ratio of potential GFA to land area).





This is much higher than the 1.4 plot ratio stated for the site in Master Plan 2003, which also zones the site for residential use. The site may be developed up to five storeys high.

Another collective sale site launched yesterday comprises two apartment buildings - K Garden and Wen Yuan Court - and a bungalow at 16 Lorong K Telok Kurau, being marketed by Jones Lang LaSalle. Developers may bid for the three properties, adding up to 46,473 sq ft in freehold land area, individually or combined.

Sources say the price expectation for the combined three is around $25 million, which works out to about $386 psf per plot ratio, including a development charge. The site is zoned for residential use with 1.4 plot ratio and a maximum height of five storeys.

Over in the Tiong Bahru area, Colliers International is marketing a six-storey serviced apartment at 3 Seng Poh Road which sources say has an indicative price of about $12.5 million. The freehold property is said to be put up for sale by mortgagee United Overseas Bank. The mortgagor was Kim Koon Garment Industries, BT understands.

The property has a land area of 9,143 sq ft and a GFA of 27,451 sq ft. The building has an eating house on the first storey, a car park on the second and third storeys, and 61 serviced apartments occupying the upper levels.

Colliers' executive director Grace Ng, who will be auctioning the property on Feb 8, says buyers may continue operating the building as a serviced apartment or apply to convert it into a boarding house/budget hotel.

mr funny
17-08-06, 19:57
St Thomas Walk site up for en bloc sale

19 Jan 06


THE Somerset area looks set to become hot property. Prices for en bloc redevelopment sites there will be closely watched, especially now that the latest land sales exercise by the Urban Redevelopment Authority (URA) at Orchard Road/Killiney Road has received a record bid of $1,085 per square foot per plot ratio.


Chez Bright Apartments at 18 St Thomas Walk is the latest property to go on sale in that area. It is marketed by Jones Lang LaSalle, whose regional director and head of investments Lui Seng Fatt believes that any new residential development on the freehold site would be able to sell at $1,500 psf.

The Somerset site is for a mixed development that may include a residential component.

Said Mr Lui: 'Based on the highest price tendered for the Somerset site, residential units there would have to sell for between $1,700 and $1,800 psf. And these are 99-year leasehold units.'

After factoring in the freehold status of Chez Bright Apartments, and the 'near prime' location, Mr Lui said a 15 per cent discount, or $1,500 psf, for the new development on the St Thomas Walk site would not be unreasonable.

The asking price for the 34,402 sq ft Chez Bright site has been set at $61.3 million (including a development charge of $6.3 million) or $640 psf per plot ratio.

The break-even price is around $960-$980 psf.

Five months ago, a larger site also on St Thomas Walk went to Centrepoint Properties for $210 million, or $601 psf per plot ratio.

The present 12-storey apartment block can be developed up to 36 storeys. With a plot ratio of 2.8, the maximum gross floor area is 96,325 sq ft.

There are several new developments in the area already on sale, including Wheelock Properties' The Cosmopolitan and Guocoland's Leonie Studios. Still, Mr Lui feels there will be ample demand from foreigners.

'Foreign investors, especially those from Hong Kong, are looking for this kind of investment grade properties,' he said.

By ARTHUR SIM

mr funny
17-08-06, 20:01
Seven sites already launched, as market rides on positive economic outlook
By Joyce Teo
Property Correspondent

IT IS no surprise that optimism is flowing in the property market: The year has barely begun, but already seven collective sale sites have been launched.

And that is coming off a record year in 2005 when 37 collective sales of residential sites worth $2.09 billion were completed - more than double the deals and value achieved in 2004.

Ms Soon Su Lin, executive director of property consultancy CB Richard Ellis, said such sales will continue at the same pace as last year thanks to a good economic outlook.

Supply and demand tells the story: Sites sold en bloc last year generated a potential supply of 3,860 new homes, while overall, 8,955 new homes were sold last year.

'So potential supply from the sites being sold en bloc is expected to meet good demand when they are ready for launch,' said Ms Soon.

Home owners in collective sales typically get at least 30 to 50 per cent more than what they would have reaped from an individual sale. But the risk, said consultants, is that owners may have unrealistically high price expectations.

Typically, potential collective sale developments are more than 10 years old with rising maintenance costs.

Selling these sites require the consent of at least 80 per cent of the owners; those less than 10 years old need 90 per cent acceptance.

Because people looking to rent tend to migrate to new projects, owners of older projects find it harder to find tenants. And with maintenance costs rising, they may be keener on a collective sale, said DTZ Debenham Tie Leung director Tang Wei Leng.

But that does not mean everyone can cash in.

Prime sites in districts 9, 10 and 11 clearly have the best chances. The Cairnhill area appears to have the most potential sites, though projects in posh Ardmore, Draycott, Nassim, Leonie Hill and St Thomas Walk are also very popular, said Credo Real Estate executive director Tan Hong Boon.

'Sites in Cairnhill are very sought-after and the success rate will be good if they are not over-priced,' he said.

In general, most owners ask for about $800-$850 per square foot per plot ratio, though some want as much as $1,000 psf ppr, he said.

Still, the highest residential collective sale land price last year was only at $876 psf ppr - made by Wheelock Properties in September for The Habitat II in Ardmore Park.

Areas in Tanjong Katong Road, Meyer Road, Amber Road, East Cost Road and the Telok Kurau area also have good chances, said the head of investments at Jones Lang LaSalle, Mr Lui Seng Fatt.

The best candidates are developments of six storeys or less, with a small number of units or a large plot of land, said DTZ's Ms Tang.

'Those with facilities would have good rental value so the owners won't be very motivated to sell,' she said.

Credo Real Estate's executive director, Mr Karamjit Singh, said: 'The poorer the physical conditions, the better the chances.'

Surroundings also play a part. For instance, a low-rise development in an area with mostly high-rise projects could be a strong target, he said.

It could be tricky for mixed developments as shop owners may not want to sell. 'The revenue they derive from the shops may be much better than the property's value,' said Ms Tang. 'If they move out, they will lose the goodwill they have established over the years.'

Consultants said many former HUDC estates like Pine Grove, Gillman Heights and Farrer Court have expressed interest in selling collectively.

So have some owners of ageing private properties such as Grand Tower in Moulmein Rise, Eng Tai Mansions at St Thomas Walk, Peck Hay Mansion in Cairnhill and The Ardmore at Ardmore Park.

But getting enough owners to agree to a collective sale could take years. 'It's a waiting game,' said Ms Tang.

A home owner Gerald sold his Parry Gardens home near Yio Chu Kang in 1993, even though a neighbour said there may be plans to sell en bloc.

'I missed out on making money but the deal was only concluded in 2005! I would have had to wait for more than a decade,' he said.

mr funny
17-08-06, 20:07
Top Print Edition Stories
Published April 7, 2006

NUS feels Gillman Heights en bloc heat
Its approval needed as it controls over 50% of share values


By KALPANA RASHIWALA



(SINGAPORE) The National University of Singapore is getting some en bloc heat from some of the other apartment owners at Gillman Heights Condo.


http://img213.imageshack.us/img213/1152/bt383646907042006mt5.jpg (http://imageshack.us)
Gillman Heights: Some owners fear they could miss the en bloc boat if developers slow down on landbanking. If NUS gives the nod, owners would secure the minimum 80% consent level to put the 836,425 sq ft site on the market


The university - which holds the key to a collective sale as it controls slightly more than half of share values in the project - is being pressured to finalise an agreement soon to launch a sale of the privatised HUDC estate.

BT understands that the university had earlier indicated it would not hold up a collective sale but is still studying the terms for a sale. However, some of the other owners fear it may take too long and they could miss the en bloc boat if developers decide to slow down on landbanking.

If NUS gives the nod, the owners of the privatised HUDC estate would secure the minimum 80 per cent consent level to put the 836,425 sq ft leasehold site on the market.

BT understands NUS owns 305 apartments in the condo, which comprises four high rise blocks of 24 storeys each with a total of 455 units and six low-rise blocks with 152 maisonettes. There is also a shop unit, bringing the total number of units in the development to 608.

Sources say the asking price of about $528 million works out to a unit land price of $323 per square foot of potential gross floor area, including an estimated $36 million payable to the state for upgrading the site's lease to 99 years from a remaining tenure of about 78 years and a further payment of $3.5 million for a slight enhancement in plot ratio.

The site is zoned for residential use with a 2.1 plot ratio (ratio of potential gross floor area to land area).

NUS told BT it has yet to make a decision. 'It is to our understanding that the proposed en bloc sale of Gillman Heights was initiated by some residents living there. The university is evaluating the information and would be taking this up with our management and Board of Trustees before making any decisions on whether to agree to the collective sale of the residential property.'

On average, owners stand to receive $870,000 per unit which is about 50 to 60 per cent more than the average value of what their units would fetch if sold individually.

The NUS spokesman said the university's apartments at Gillman Heights provide off-campus accommodation for some of its staff and graduate students. 'If necessary, and when appropriate, the university will then proceed to help them source for alternative accommodation,' he added.

Even if NUS gives the nod, and the collective sale is launched, it remains to be seen what sort of response the exercise will garner.

While developers have been snapping up land over the past six months or so, they've focused on the prime districts in response to a strong recovery in home buying in the luxury residential segment. As well, the Gillman Heights site is huge - a new project on the site can house around 1,400 apartments averaging 1,300 sq ft.

Not many developers have the financial muscle for such a big project. And even if they do, they may not wish to put all their eggs in one basket.

Also, the asking price set by the owners, which works out to a unit land price of $323 psf per plot ratio, would translate to a relatively high breakeven cost of at least $500 psf for the developer, say market watchers.

mr funny
17-08-06, 20:13
Top Print Edition Stories
Published April 19, 2006


Robinson Rd office block to go residential

By KALPANA RASHIWALA


(SINGAPORE) Another ageing CBD office block looks set to make way for homes. BT understands that SingTel is likely to sell 71 Robinson Road - which houses Robinson Post Office - after securing provisional permission to redevelop the property into a 51-storey project.


http://img213.imageshack.us/img213/7891/bt389422419042006of8.jpg (http://imageshack.us)
From office to homes: SingTel has obtained provisional permission to redevelop the CBD site


Provisional approval has been granted for 315 apartments on the upper 44 storeys, which will be above a six-storey carpark podium and one level of commercial space.

The commercial space is expected to be at street level. The plot ratio - the ratio of potential gross floor area to land area - approved is 11.2. This means the project can be built up to a gross floor area of 274,746 sq ft - a significant enhancement from the existing 99,383 sq ft.

Approval is subject to the site being rezoned from commercial use to residential with commercial use on the first storey. A development charge will be payable to the state in exchange for the right to develop a bigger project on the site.

In addition, the successful developer is expected to apply to the authorities to top up the 24,531 sq ft site's lease from the remaining 45 years to the original 99 years.

The seven-storey building, formerly known as Crosby House, is at the corner of Robinson Road and McCallum Street.

Other ageing office blocks expected to make way for homes include NatWest Centre and Asia Chambers - both in McCallum Street - 1 Shenton Way and the HMC Building in Mistri Road.

SingTel is expected to put up 71 Robinson Road for sale in line with its policy of divesting non-core property to redeploy the resources to its core telco business.

In February, it sold a former telephone exchange in Old Holland Road for $30 million.

Tenders have closed for two sites in West Coast and Hillcrest roads.

mr funny
17-08-06, 20:51
Property
Published May 4, 2006

HPL's latest condo to top $2,000 psf price
Project on Beverly Mai site to be pitched as most exclusive in S'pore


By KALPANA RASHIWALA


CHRISTOPHER Lim, group executive director of Hotel Properties Ltd (HPL), says a new condo on the Beverly Mai site which the group bought last week is located just as well if not even better than the Four Seasons Park condo the group developed in the mid-1990s.


http://img136.imageshack.us/img136/4423/bt397830504052006wb5.jpg (http://imageshack.us)
Mr Lim: The $1,600 psf breakeven cost for HPL's proposed new condo on the Beverly Mai site reported in the media is "in the lower range".


'The project will be the most exclusive in Singapore,' Mr Lim said in an interview with BT.

'The pricing will definitely be above $2,000 psf on average. It's a question of how much more than $2,000 psf.'

The 36-storey development is likely to be released for sale early next year. The configuration of unit sizes has yet to be finalised, although market watchers expect most of them to be large units of 2,000 sq ft or so, given that these are in high demand by foreign buyers and well-heeled Singaporean investors looking to buy apartments to lease out, particularly to expatriate families.

Mr Lim said the $1,600 psf breakeven cost for HPL's proposed new condo on the Beverly Mai site reported in the media is 'in the lower range'.

HPL bought Beverly Mai on Tomlinson Road through a $238 million collective sale - $1,184 per sq ft of potential gross floor area inclusive of an estimated development charge of $16.8 million.

The site is zoned for residential use with a 2.8 plot ratio(ratio of potential gross floor area to land area).

Mr Lim said the Beverly Mai site is superior in terms of accessibility and height control to the group's Four Seasons Park condo project which set the benchmark for the high-end condo market in the 1990s.

The new project at the Beverly Mai site will have 36 storeys. Four Seasons Park has 27 storeys.

And whereas the Four Seasons Park condo can be accessed only through Cuscaden Walk, the Beverly Mai site can be accessed through Orchard Boulevard, Grange Road (through One Tree Hill) and Paterson Road, Mr Lim said.

'The new condo will boast unobstructed views as it will be surrounded by landed properties and greenery, including the Good Class Bungalow areas of Rochalie Drive, Chatsworth and Bishopsgate,' Mr Lim said.

'Beverly Mai is in a quiet enclave surrounded by low-rise residential properties and yet it's just a minute's walk from Four Seasons Hotel.'

HPL's Beverly Mai deal - which is still subject to approval by the Strata Titles Board since unanimous approval from owners has yet to be secured - is the group's first major property acquisition in Singapore in about nine years.

The group is interested in more prime freehold residential sites here but will stick to its current stronghold in the Cuscaden/Orchard belt.

On the status of the group's long standing plans for a massive redevelopment of the group's four properties in the Orchard/Cuscaden area - Four Seasons and Hilton hotels, Forum and HPL House adding up to a land area of almost 220,000 sq ft, Mr Lim said: 'We're looking at this with great enthusiasm but not ready to make any announcements.'

Expectations that HPL would bring forward its plans have been running high since March last year when the Urban Redevelopment Authority (URA) announced a scheme to give incentives to redevelop properties along Orchard Road.

Under this scheme, the URA may grant additional gross floor area (GFA) beyond that allowed under the Master Plan - if redevelopments result in innovative projects that generate tourism and other economic spinoffs.

Asked if HPL will team up with Wheelock Properties (Singapore) - which recently bought a 21 per cent stake in HPL - to undertake this massive redevelopment of its four Cuscaden/Orchard properties or for the Beverly Mai project, Mr Lim said there are no specific discussions for any joint venture proposals.

'But there is good chemistry between the two companies, and their assets and ours are quite similar. That could lead to cooperation in future.

'We are very friendly with Wheelock. We have high regard for their management - Peter Woo and David Lawrence - and (HPL managing director) Mr Ong Beng Seng knows them personally. We like what they have done and likewise, they like what we have done.

'So sure, in future, anything can happen.'

Even without joint ventures, though, HPL can undertake the redevelopment of the four Orchard/Cuscaden Road buildings through internal resources and bank borrowings.

'Our gearing is relatively low, about 40-plus per cent. And we're not a property developer which is totally dependent on development profits. We have quality investment income from hotel operations,' Mr Lim points out.

HPL has more than 10 hotels, in Singapore, Maldives, Bali, Pattaya, Bangkok, Langkawi, Kuala Lumpur, Bhutan, New York and Vanuatu.

mr funny
17-08-06, 20:53
Cairnhill Circle: terrace house owners relaunch their site

By KALPANA RASHIWALA

(SINGAPORE) The owners of 16 terrace houses at Cairnhill Circle whose properties remained unsold - following the collective sale of the next-door Hilltops Apartments site - are relaunching the 49,856 sq ft freehold site.



Condo plan: Artist's impression of the proposed 100-unit luxury apartment project that could come up on the site occupied by the 16 terrace houses. Market watchers reckon SC Global could buy the site
The owners - said to include wealthy individuals including some grandchildren of the late tycoon Khoo Teck Puat of the Goodwood group - have even appointed a consultant to design a redevelopment scheme for their site, involving a 100-unit apartment project engulfing part of the Hilltops Apartments site.

Mr Khoo was the original developer of the terrace houses as well as Hilltops Apartments.

SC Global Developments last month clinched Hilltops Apartments - with a freehold land area of 67,308 sq ft - for $294 million through a collective sale but declined to buy the adjoining 16 terrace houses which had been offered separately.

The proposed luxury apartment development scheme by design consultant Sommai Chareon envisages a 15-storey project with a total of 100 units to be built on a site surrounding part of the Hilltops plot. Due to the site configuration, the project on the terrace house plot will have a slimline design which is now in vogue, notes Tang Wei Leng, director at DTZ Debenham Tie Leung. DTZ, which is marketing the 16 terrace houses, also brokered the sale of Hilltops.

Market watchers observe the proposed condo designed for the site currently occupied by the terrace houses could potentially block views for a chunk of units in SC Global's proposed condo on its Hilltops site.

Of course, SC Global could locate its condo blocks on the part of the Hilltops site which is not immediately adjacent to the terrace houses and instead utilise the portion next to the houses for facilities like swimming pools, tennis courts and a clubhouse as well as for utility services like a substation.

Market watchers reckon SC Global could end up buying the terrace houses as it would be the most suitable party to do a comprehensive redevelopment scheme involving both sites.

'It's probably a question of price. The terrace houses' price will have to be at a level that will make sense for SC Global to buy,' said an industry observer.

The owners of the 16 terrace houses are asking for $120 million or $951 psf of potential gross floor area inclusive of an estimated development charge (DC) of $12.81 million - exactly the same unit land price that SC Global paid for Hilltops Apartments.

However, BT reported last month that the reserve price for the terrace houses is lower, at about $100 million - which works out to $808 psf ppr including DC. This is 15 per cent lower than the unit land price paid for Hilltops.

The tender for the 16 terrace houses closes on May 30. The site is zoned for residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area) and a 20-storey height limit under Master Plan 2003.

BT understands among their owners are wealthy individuals including some grandchildren and other relatives of the late Mr Khoo.

mr funny
17-08-06, 21:03
Horizon View in Cairnhill up for en bloc sale at $123m

6 May 06


THE owners of Horizon View in Cairnhill Road are the latest to hit the en bloc trail, asking $123.2 million or $3.4 million per existing unit. This works out to about $951 psf of potential gross floor area, inclusive of an estimated development charge of $1.1 million - the same unit land price achieved for Hilltops Apartments at Cairnhill Circle recently.


If the asking price of $3.4 million per unit is achieved, the owners of the existing 36 units at Horizon View will reap a collective sale premium of about 100 per cent based on the last individual transaction - $1.7 million for an apartment sold in March last year.

CB Richard Ellis, which is marketing the property through a tender that closes on June 8, says Horizon View has a freehold land area of 46,661 sq ft. The site is zoned for residential use with a 2.8 plot ratio and a 36-storey maximum height.

By KALPANA RASHIWALA

mr funny
17-08-06, 21:04
Airview Towers owners woo developers
More flexibility, upside seen in 'collective exchange' than sale

By ARTHUR SIM

AIRVIEW Towers in River Valley Road is for sale - sort of. DTZ Debenham Tie Leung has been appointed by a sale committee of owners to look for developers keen on the 63,264 sq ft property.

Airview Towers: Through a collective exchange, owners hope to reap future capital appreciation
DTZ's director of investment advisory services Tang Wei Leng said an expression-of-interest exercise will give both buyers and sellers 'flexibility' to negotiate the terms before anyone actually signs on the dotted line, or even before a contract is drawn-up.

With the recent 'collective exchange' of Paterson Lodge - existing home owners opted for new units in the redevelopment of their building rather than cash payment - more home owners are considering this route rather than a traditional collective sale, as there could be more upside.

Based on recent prices at new developments in the area, Ms Tang reckons the land price for Airview Towers, which has a plot ratio of 2.8, could be about $750-$800 psf ppr. This would work out to about $135-$142 million in total. On average, existing owners would reap a 30-40 per cent premium on the current market price for individual units.

But through a collective exchange, Ms Tang says owners who take a 'future view can ride through the market and hope for future capital appreciation rather than cash out at a particular price at this point in time'.

Although a collective exchange throws up contractual complexities, as owners and the developer have to be amenable to the terms, Ms Tang says she has received more requests for this option recently.

Developers, however, have a choice in the vicinity of Airview Towers. Also for sale in the same area is a warehouse at Martin, Narayanan Chetty and Muthuraman Chetty roads.

Opposite the former TradeMart site, which is now RiverGate condominium, the 44,477 sq ft redevelopment site, with a plot ratio of 2.8, is being marketed by Jones Lang LaSalle.

JLL's regional director and head of investments Lui Seng Fatt says the site will primarily be for residential use but will also have a commercial component on the first storey.

The maximum GFA is 124,500 sq ft and the land price is likely to be $750-$800 psf ppr including development charge.

mr funny
17-08-06, 21:13
Singapore
Published May 26, 2006


HIGH-END PROPERTIES
Owners of Nassim Park invite expression of interest
$410m asking price for prime freehold site works out to $1,218 psf ppr


By KALPANA RASHIWALA


JUST after news broke of City Developments emerging as the highest bidder for the 169,188 sq ft Lucky Tower in Grange Road, and with some market watchers wondering how many more substantial, prime collective sale sites would be rolled out, the owners of the freehold Nassim Park have offered their 245,135 sq ft freehold site through an expression-of-interest exercise.


http://img108.imageshack.us/img108/8485/bt410883825052006je1.jpg (http://imageshack.us)
Nassim Park: The 245,135 sq ft site, with a four-storey height restriction, can accommodate about 160 apartments


Marketing agent Savills Singapore says the $410 million asking price for Nassim Park, which was developed by City Developments and completed only 14 years ago, works out to $1,218 psf of potential gross floor area inclusive of an estimated $8 million development charge.

This matches the record unit land price earlier this year for Eng Lok Mansion next to Gleneagles Hospital.

While the Eng Lok site has a higher 10-storey redevelopment limit compared with just four storeys for Nassim Park, and while Eng Lok's buyers paid top dollar with a view of redeveloping the site into upmarket medical suites, Nassim Park's more exclusive location stands it in good stead to fetch the same price as Eng Lok, says Savills Singapore managing director Michael Ng.

In fact, he expects Nassim Park's price to surpass Eng Lok's. 'Freehold sites in prime districts are always in demand, but this particular site is the creme de la creme of all the sites currently available in the market. It is the only large condo site left in Nassim Road.'

Nassim Park is zoned for residential use with a 1.4 plot ratio and four-storey height restriction. It can be redeveloped into a project of about 160 apartments ranging in size from about 1,900 sq ft to 2,200 sq ft.

Nassim Park, built in 1992, has 104 strata-titled apartments and townhouses.

If the owners obtain their asking price, they will receive at least double what their units would fetch if sold on an individual basis. CityDev does not own any units in the development.

Expressions of interest for Nassim Park close on June 21.

mr funny
17-08-06, 21:15
Freehold site in Chatsworth GCB area up for en bloc sale
Price tag of $80.5m to $83.5m expected

By KALPANA RASHIWALA

A 69,189 sq ft freehold site in the Chatsworth Good Class Bungalow (GCB) area has come on the market with an expected price tag of $80.5 million to $83.5 million.

Nos 2 to 50 Bishopswalk: The site may be developed into low-density housing with a maximum 1.4 plot ratio
At present, 25 townhouses stand on the site - at Nos 2 to 50 Bishopswalk - and their owners have decided to band together for a collective sale.

Although the site is within the Chatsworth GCB area, it may be developed into low-density housing with a maximum 1.4 plot ratio - the ratio of potential gross floor area to land area - under Master Plan 2003. Observers suggest this is in keeping with the existing development on the site.

DTZ Debenham Tie Leung, which is marketing the property, says the site can be redeveloped into a low-rise condo with about 43 units averaging about 2,000 sq ft. Alternatively, developers may consider developing 16 strata bungalows.

An estimated development charge (DC) of $8.45 million is payable for either redevelopment scheme. The $80.5 million to $83.5 million being sought by the owners works out to a unit land price of about $920 to $950 psf of potential gross floor area inclusive of DC.

The breakeven cost for a luxury low-rise condo could be about $1,400 psf, and if the developer opts for the alternative of 16 strata bungalows, the breakeven cost would work out to about $6.5 million per bungalow.

DTZ is marketing the site through an expression of interest that closes on June 14. Developers may make an all-cash offer or offer replacement units in a new development to the sellers, or come up with a combination offer.

Based on their asking prices, owners of the existing 25 townhouses stand to walk away with $3.2 million to $3.3 million per unit, representing a premium of about 50 per cent on the current value of their townhouses if sold separately.

mr funny
17-08-06, 21:16
44,663 sq ft freehold site at Paterson Road/Lengkok Angsa

2 more sites put on sale despite turmoil on bourses
One is an en bloc offer at $110.6m, the other a hotel plot from URA

By KALPANA RASHIWALA

EVEN as some market watchers wonder if developers' appetite for land will be hit by the stockmarket rout, new sites continue to be rolled out.

The latest offerings include a 44,663 sq ft freehold site at Paterson Road/Lengkok Angsa being offered by collective sale, and a 99-year hotel site along Unity Street/Clemenceau Avenue on the government's reserve list offered by the Urban Redevelopment Authority.

The Lengkok Angsa site, currently occupied by 14 houses, has an asking price of $110.6 million or about $1,184 per square foot (psf) of potential gross floor area including an estimated $421,000 development charge.

This matches the unit land price that Hotel Properties paid for last month's collective sale of Beverly Mai at Tomlinson Road.

In the case of the latest Lengkok Angsa site, if the developer succeeds in applying to buy a part of the road separating the houses, this is expected to lower the developer's all-in unit land price to about $1,100 psf per plot ratio (psf ppr) inclusive of payment to the state.


"However, moments like these give everybody a time to take a breather and take stock. Lately, the prices that developers have been paying for land does not leave them with much of a profit margin. It's based on future price increases.'

- a seasoned property consultant on the impact that the stock market rout could have on developers' landbanking decisions




Still, this is nearly 70 per cent higher than the $650 psf ppr all-in unit land price that Bukit Sembawang paid for the next door site of 32 houses in July last year.

This reflects the escalation in prime land values over the past 12 months as developers snapped up sites in response to strong demand for luxury homes led by foreign demand.

Whether new benchmarks in land prices will keep on being set remains to be seen.

The stockmarket slide is expected to be used by some developers as an excuse to offer lower land prices, some industry observers suggest.

'This is part of the posturing process. But it's still early days. So far, nobody has panicked,' said a seasoned property consultant.

'However, moments like these give everybody a time to take a breather and take stock. Lately, the prices that developers have been paying for land does not leave them with much of a profit margin. It's based on future price increases.'

Notwithstanding this, if developers bite at the latest Lengkok Angsa site and the owners of the 14 houses on the site receive their asking price of $110.6 million, they will reap a collective sale premium of more than 100 per cent.

The site is zoned for residential use with a 2.1 plot ratio (ratio of potential gross floor area to land area).

There is a 24-storey maximum height.

The second site on offer is a 42,503 sq ft hotel plot at Unity Street and Clemenceau Avenue, with a 2.8 plot ratio.

This translates to a maximum gross floor area of 119,006 sq ft.

By some calculations, a hotel development on the site can yield about 190 rooms.

The maximum height for the new development is four storeys fronting the Singapore River, with a higher limit of 10 storeys away from the river.

A hotel consultant said that the site could attract new players into the market given the shortage of hotel development sites.

However, she said that it would be difficult to forecast how much potential bidders would be prepared to pay, as this depends on how they deal with the restrictions like the four-storey height limit next to the river.

Another drawback is the site's configuration.

There is just a small frontage on the Singapore River, and most of the site faces either a busy stretch of Clemenceau Avenue or Unity Street, say market observers.

This is the second of three hotel sites on the government reserve list for the first half of 2006 that have been made available for application by developers.

The first, at Sinaran Drive in the Novena medical hub, was made available last month.

The final plot, in the traditional budget hotel/backpacker haunt of Bencoolen Street, will be offered next month.

Being reserve list sites, they will be released for tender only upon successful application by developers undertaking to bid minimum prices acceptable to the government.

mr funny
17-08-06, 21:52
Property
Published May 30, 2006


Residential collective sales from June 2005

http://img123.imageshack.us/img123/263/2006052913od8.jpg (http://imageshack.us)

mr funny
18-08-06, 15:42
Top Print Edition Stories
Published May 30, 2006


Collective sales hit $3.5b in just 5 months
Opinions differ on whether developers will keep buying at current prices


By KALPANA RASHIWALA



(SINGAPORE) Including yesterday's Lucky Tower deal, 26 collective sales have been transacted for a total of about $3.5 billion so far this year, surpassing the $2 billion for the whole of last year, although that was for 36 sites, the latest figures from CB Richard Ellis show.


http://img85.imageshack.us/img85/1825/bt413452230052006bf1.jpg (http://imageshack.us)

What is more interesting is the broad spectrum of buyers in the current wave of en bloc deals that kicked in last year.

From property giants like Far East Organization and City Developments to mid-size players like Ho Bee, relatively new entrants like Aspial and construction and property groups like Chip Eng Seng, Sim Lian and Hoi Hup, just about every player in town seems to have netted at least one prime district site - or more. Even Hotel Properties, which had not made a major purchase since the Asian financial crisis of 1997, was lured recently by Beverly Mai at Cuscaden Road.

Can property agents continue to whet the appetite of developers as they keep rolling out prime district collective-sale sites at current prices?

'After you've eaten something you're less hungry and tend to be more choosy about what you're going to eat next,' is how DTZ Debenham Tie Leung director Tang Wei Leng puts it.

Agreeing with this, a fellow property consultant notes that the number of bids for recent en bloc tenders has fallen compared with, say, six months ago.

However, taking a more positive view, CB Richard Ellis executive director Jeremy Lake says the broad spectrum of buyers for collective-sale sites - with buying not just confined to just a few players - suggests that if some drop out and decide to take a break for the time being, others can replace them.

But the jury is out on where luxury land prices are headed. Some industry players reckon they have plateaued, while others believe they can head further north because developers need to keep replenishing their landbanks with prime district sites on the back of strong purchases of luxury homes driven by foreigners.

Says a developer who has been buying prime en bloc sites: 'I think prices have levelled off. If prices were to come down, a lot of prime Orchard Road sites would not be available in the market as the prices would not be enough to entice owners to sell.

'But by the same token, over the past three months, everyone has bought at least one piece of choice land. When you're full and look at the dessert menu, it doesn't look so interesting. So that will provide a stalemate in land prices, I think.'

However, others beg to differ. 'St Regis Residences will be the litmus test for luxury residential prices. And that will provide the base for further increases in high-end residential land values,' suggests Knight Frank executive director Foo Suan Peng. Sources say Hong Leong Group has begun to sell the luxury housing project at Tomlinson/ Cuscaden roads at average prices of about $2,500-2,600 psf, although some choice units have achieved much higher prices.

Even taking into account the project's unique factors, the pricing reflects values above the current market, Mr Foo notes.

Luxury home prices in Singapore still lag those in major cities and are attractive to foreign buyers. 'Increasingly we are seeing regional and international property buyers who are looking for a place to park funds being drawn to Singapore because it's a wealth management hub and enjoys a safe haven status,' says Mr Foo.

'This will continue to provide the momentum for developers to replenish prime sites. If developers buy predominantly high-end sites, this will create upward pressure on prime land prices.'

A list compiled by CBRE of collective-sale transactions since June last year shows the big buyers include Hong Leong Group, which includes listed City Developments. The group has spent $726.5 million on four acquisitions including the $383 million purchase of Lucky Tower.

Another big buyer has been fellow property giant Far East Organization, which has bought four properties totalling $715 million, including the $385 million purchase of Waterfront View with Frasers Centrepoint.

Bukit Sembawang Estates broke an eight-year hiatus in land buying when it snapped up Woodleigh Grove in July last year, and followed up with four other collective-sale purchases.

mr funny
18-08-06, 15:50
Top Print Edition Stories
Published June 12, 2006

SC Global puts Newton site up for sale
Sale of site slated for commercial devt could fetch up to $58m


By KALPANA RASHIWALA


(SINGAPORE) Riding on the recovery in the property market, Simon Cheong's SC Global Developments has put up for sale a commercial site it bought last year at the corner of Newton and Thomson roads which some in the market say could fetch around $42 million to $58 million.


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Prime location: SC Global has proposed the building of medical suites for the site situated at the corner of Newton and Thomson roads


If this price is indeed achieved, it would make for a handsome profit given that SC Global bought the 15,490 sq ft freehold site for just $13.5 million in August last year when sentiment was weaker.

Besides the vast improvement in sentiment in the commercial property market, an additional reason for the increase in the site's value comes from SC Global's decision to pitch the proposed commercial development for medical suites.

This makes sense given that the Novena area seems to be shaping up as a medical hub with Far East Organization's Novena Medical Centre coming up and the site's proximity to Tan Tock Seng Hospital. SC Global's site - previously used as a Shell petrol station - is also close to Thomson Medical Centre and KK Women's and Children's Hospital.

SC Global's site is currently approved for a 12-storey commercial building with a 3.0 plot ratio (ratio of potential gross floor area to land area). This allows a maximum gross floor area (GFA) of 46,470 sq ft. No development charge (DC) is currently payable.

However, the property group, which is well-known for its upscale residential properties, recently submitted an outline application for a higher plot ratio of 4.2 entailing an 18-storey commercial project with 65,058 sq ft GFA. The latter scheme, if approved, would involve payment of a development charge of nearly $1 million.

SC Global itself has not placed a price tag for the property, which is being marketed by DTZ Debenham Tie Leung by a tender that closes on July 12.

However, by some estimates, the site could fetch about $900 psf of potential gross floor area, inclusive of development charges, if any. This works out to an absolute amount of about $42 million based on the approved redevelopment scheme with 3.0 plot ratio.

Using the proposal for a higher 4.2 plot ratio, the plot's value translates to a higher figure of $57.6 million using the same $900 psf per plot ratio unit land price.

The breakeven cost for the new freehold project works out to about $1,800 psf to $1,900 psf.

Currently, Far East Organization is said to be selling 99-year leasehold medical suites at its upcoming Novena Medical Centre nearby for about $2,000 psf. The location is set for transformation. Novena Square is being repositioned as a sports and lifestyle mall with a new name of Velocity@Novena. And the Urban Redevelopment Authority will soon launch for tender a residential plot near Novena Medical Centre, which will create more homes in the area.

Across the road, next to SC Global's site, the owners of units in the four-storey Goldhill Centre are also said to be planning a collective sale and are understood to have submitted a planning application for a commercial redevelopment of their site.

SC Global bought its site last August from Shell Singapore through a tender.

mr funny
18-08-06, 16:39
Singapore
June 13, 2006, 6.17 pm (Singapore time)


2 Killiney Rd sites near Somerset MRT up for en-bloc sale


SINGAPORE - Colliers International on Tuesday said it has put up for sale by tender two freehold residential development sites located at Killiney Road.


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The site at 147 Killiney Road is currently occupied by Killiney Apartments (above), a 16-storey residential development, which houses 44 apartment units.


In a statement, the property consultant said the first site, at 147 Killiney Road, is currently occupied by Killiney Apartments, a 16-storey residential development which houses 44 apartment units.

Zoned for residential use under the 2003 Master Plan, the 40,348 sq-ft development site has a gross plot ratio of 2.8 and an allowable building height of up to 10 storeys.

Ho Eng Joo, director for investment sales at Colliers International, said owners expect the site to fetch between $94 million and $96 million, or $835-$852 psf per plot ratio (psf ppr).

The tender for the site will close on July 12.

The second and smaller development site, meanwhile, is located at 118-128 Killiney Road and occupies a land area of 10,050 sq ft.

Zoned for residential use with first storey commercial under the 2003 Master Plan, the site has a gross plot ratio of 2.8 and an asking price in the range of $21-$23 million, or $750-$820 psf ppr, said Colliers.

Tender will close on July 6 for this site. -- BT Online

mr funny
18-08-06, 16:52
Property
Published June 8, 2006


Two freehold sites up for en bloc sale
Phoenix Court, Hong Yun Court priced at $100m, $9m respectively


By KALPANA RASHIWALA



THE owners of Phoenix Court at the St Thomas Walk/Killiney Road corner and Hong Yun Court in Telok Kurau want to join the collective sale bandwagon.


Phoenix Court's asking price is said to be close to $100 million, which works out to around $850 per square foot (psf) of potential gross floor area including an estimated $5 million development charge (DC). Under Master Plan 2003, the 44,003 square foot freehold site is zoned for residential use with a 2.8 maximum plot ratio - the ratio of potential maximum gross floor area to land area - and maximum height of 36 storeys.

Phoenix Court marketing agent Dennis Wee said owners controlling more than 80 per cent of share values in the development have agreed to a sale. Phoenix Court is a 13-storey block with 47 apartments.

Dennis Wee is also marketing Hong Yun Court, which occupies a freehold site with a land area of 18,398 sq ft at Lorong M Telok Kurau. Dennis Wee said it understands that the buyer of this site may be able to buy from the state a small neighbouring plot of 2,239 sq ft for about $900,000. Hong Yun Court's owners are said to be asking for about $9 million for their property. This works out to about $343 psf of potential gross floor area inclusive of a small development charge of about $70,000 and the price payable for the state plot.

Hong Yun Court has a single block of 12 apartments. All the owners have agreed to a collective sale. The site is zoned for residential use with a 1.4 plot ratio with a five-storey height limit. The tenders for both properties close in end-June.

Dennis Wee also expects to garner soon the minimum 80 per cent consent level for another en bloc sale - of East Coast Ville at 320 Upper East Coast Road. The property has a land area of about 96,600 sq ft, with a 1.4 plot ratio under Master Plan 2003. The owners' asking price of about $56 million works out to nearly $450 psf per plot ratio including an estimated $4.7 million DC.

mr funny
18-08-06, 17:00
Property
Published June 20, 2006

Orange Grove Condo up for enbloc sale
Owners asking for a total of $175 million or $1,143 psf ppr


By KALPANA RASHIWALA


AFTER a flurry of collective sales in the Cairnhill and Orchard Boulevard areas in recent months, en bloc fever has headed towards Orange Grove Road.


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Orange Grove Condominium: It's the first property to be put up for collective sale in Orange Grove Road this year


Orange Grove Condominium is the first property to be put up for collective sale in Orange Grove Road this year, says marketing agent Jones Lang LaSalle.

Market sources say the owners expect about $175 million, which works out to $1,143 per square foot of potential gross floor area inclusive of an estimated development charge of $6 million. The 98,953 sq ft freehold site at the corner of Orange Grove and Stevens roads is zoned for residential use with a 1.6 plot ratio - the ratio of potential gross floor area to land area - with a 12-storey height limit.

Analysts estimate a new condominium project on the District 10 site could break even at about $1,650 psf.

'We expect keen competition for the site. There is a very limited supply of sites for sale in Orange Grove Road. Most of the stock is tightly held - there's Shangri-La Hotel, RELC and several serviced apartments. Also, the location is close to Nassim Road, which is highly sought after,' says JLL's regional director and head of investments Lui Seng Fatt.

Other prime district residential sites now on the market include Habitat One with an asking price that works out to a $1,280 psf per plot ratio including DC, Nassim Park with an asking price of $1,218 psf ppr and a site at Lengkok Angsa in the Paterson Road vicinity at $1,184 psf ppr.

Assuming Orange Grove Condominium's owners get the price they expect, they will pocket on average $5 million to $6 million per unit, with the biggest unit fetching about $10 million. These sums are almost 90 per cent more than the units would fetch if sold on an individual basis.

The existing development comprises two four-storey blocks housing a total 31 apartments and maisonettes with floor areas ranging from 2,917 sq ft to 7,276 sq ft.

The development is about 18 years old. A few Hong Kong investors collectively own four units in the development.

Currently, owners controlling more than 80 per cent of share values in the estate have agreed to a collective sale. The tender closes on July 19.

mr funny
18-08-06, 17:14
Property
Published June 15, 2006


Joo Chiat walk-up apartments to go en bloc


BOUGAINVILLE Maisonette Apartments - a small walk-up group of eight apartments on Joo Chiat Terrace - is being put on the market for collective en bloc sale.


Located in District 15, the indicative price for the 20,576 square foot site is $9 million or $312 per square foot per plot ratio, says its marketing consultant United Premas.

There is also a development charge of $85,000. And United Premas says all owners have agreed to sell.

The site is zoned for residential use and has a plot ratio of 1.4.

The height restriction for the area is five storeys. It can be built up to a gross floor area of 28,807 sq ft, providing about 27 units of 1,000 sq ft each.

Suzie Mok, deputy director (asset management) of United Premas, says: 'The site offers a developer an opportunity to design an exclusive boutique development targeting at young couples, small families and upgraders.'

Meanwhile, Aspial Corporation's new boutique residential development Carlyx Residence on Carlisle Road, near Kampong Java Park, will go on sale this weekend.

The development has 12 apartments of one, two and three bedrooms, and marketing consultant Real One International says that prices will start at $410,000.

The developer will also offer a deferred payment scheme in which only 5 per cent is required upon the booking of a unit, with another 5 per cent within eight weeks.

Until then, there will be no further payment until TOP (temporary occupation permit) is issued no later than Oct 30, 2008.

mr funny
18-08-06, 17:18
Top Print Edition Stories
Published June 28, 2006


URA turns down plan for medical centre at Eng Lok site

By KALPANA RASHIWALA



(SINGAPORE) The planning authorities have turned down an application for a medical centre development at the Eng Lok Mansion site on Napier Road, BT understands.


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Eng Lok Mansion: If its appeal fails, Napier Properties will proceed with a residential project on the site


The freehold site was bought earlier this year by Napier Properties at a record land price of $1,218 psf per plot ratio.

Napier Properties, which counts former Parkway Holdings boss Tony Tan among its key shareholders, had paid the record price in hopes of redeveloping the site - which is next to Parkway's Gleneagles Hospital - into an upscale medical centre.

Medical suites in prime districts make up some of the most expensive real estate in Singapore.

Units at the freehold Gleneagles Medical Centre, for example, are said to be going at up to $2,800 to $3,000 psf.

The Urban Redevelopment Authority (URA) turned down the medical centre proposal for the Eng Lok site as it is not in sync with the authorities' planning intention for the site.

Under Master Plan 2003, the 70,810 sq ft site is zoned for residential use with a 1.6 plot ratio and 10-storey height limit.

However, Napier Properties is free to redevelop the Eng Lok site into a condominium or service apartments, according to advice given by the URA.

Mr Tan's partner in the venture, Mark Wee of Penang's Island Hospital group, said, when contacted by BT yesterday, that Napier Properties would appeal against the decision.

It would highlight the economic spin-offs that a high-end medical centre next to Gleneagles Hospital would have in attracting high-end medical visitors to Singapore. For such a facility to be successful, it would have to be located adjacent to the two private hospitals in the prime districts, namely Gleneagles and Mount Elizabeth, Mr Wee argued. 'Eng Lok's location is ideal for this purpose.'

But if the appeal fails, Mr Tan and Mr Wee will go with their back-up plan, as stated in March, of building a residential development. This could comprise some service apartments for lease and others for sale.

Or the owners could build an exclusive condo, tentatively named Embassy Row after the site's proximity to foreign diplomatic missions, at an average price of over $2,000 psf.

Market watchers estimate that based on Napier Properties' $1,218 psf ppr land price, the break even cost for an upmarket condo could be around $1,800 psf.

Napier Properties had planned to offer medical suites for sale and lease at its medical centre.

If it fails in its appeal, Napier Properties will be looking at a smaller profit than it has envisaged, as a condo would sell for less than medical suites.

Still, the turn of events is not expected to have wide repercussions on the collective sale market.

'Yes, many owners when doing collective sales often peg their asking prices to the $1,218 psf ppr achieved for Eng Lok. But Eng Lok was a medical play. The big residential developers like Far East and City Developments did not top the list of bidders for Eng Lok,' said one observer.

Agreeing, a property consultant said: 'There aren't that many Tony Tans around. The market will find its own level. Developers have to analyse the strengths and weaknesses of each site and decide the risk level they are willing to take.'

mr funny
18-08-06, 17:20
Property
Published June 22, 2006


Bt Timah-Keng Chin Rd houses up for sale again
The properties next to Naga Court have an expected price tag of about $51m


By KALPANA RASHIWALA


PROMINENT neighbours in Bukit Timah are teaming up again to sell their freehold properties next to Naga Court, with an expected price tag of about $51 million.


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Selling together: Collective offer consists of 6 plots spanning an area of 44,976 sq ft


The latest property offer sees Hock Tong Bee, Singapore's oldest family-owned wine merchant, joining forces with descendants of the late Seah Eck Jim - a pioneering local architect. The properties are at the corner of Bukit Timah and Keng Chin roads.

In July 2004, the two sides put up their properties for sale, but the four sites totalling about 35,381 square feet and with four bungalows standing on them were not sold then as the offers were not high enough for the owners.

This time, they have included a neighbour's bungalow plot and a road reserve which was originally thought to belong to the state but has since been confirmed as being part of the estate of Mr Seah's widow.

Including these two plots has resulted in a bigger combined land area of 44,976 sq ft. The $51 million which the owners are hoping for works out to about $703 per square foot (psf) of potential gross floor area, including an estimated development charge (DC) of $15.5 million. This unit land price is 68 per cent higher than the $419 psf per plot ratio (ppr) including DC that market watchers had expected in 2004. The 2004 unit land price expectation factored in the cost of buying the adjoining road reserve from the state.

DTZ Debenham Tie Leung, which is marketing the 44,976 sq ft site, says that it is zoned for residential use with a 2.1 plot ratio and 24-storey height limit under Master Plan 2003. The site can be redeveloped into a new condominium with about 60 units averaging 1,500 sq ft.

The current price expectation is pegged at the $703 psf ppr including DC that Keppel Land paid for Naga Court next door in a collective sale in 1999. In 2001, KepLand wrote down the value of the 49,168-sq-ft freehold site to $409 psf ppr.

Sentiment in the property market has certainly picked up markedly since then. DTZ director for investment advisory services Tang Wei Leng says: 'Given the better outlook, we anticipate this site to fetch at least the same price if not better than the $703 psf ppr Naga Court price.'

The latest site comprises six parcels, including Nos 347 and 351 Bukit Timah Road belonging to Hock Tong Bee, No 349 Bukit Timah Road belonging to Kwok Weng Fai (grandson of the late Mr Seah), No 353 Bukit Timah Road owned by his sister, Dawn Kwok, and her husband, Wee Kok Wah, group president of Stamford Tyres.

The other two plots are the road reserve, which belongs to the estate of Lim Buck Sim (Mr Seah's widow), and No 2 Keng Chin Road, owned by a neighbour. The six plots combined form a regular-shaped rectangular plot which should appeal to developers.

Li-Ann Wee, daughter of Dawn Kwok, said the two bungalow plots being sold by her parents and her uncle Kwok Weng Fai are the last two land parcels owned by the family in the area.

'The Seah family rode out the Japanese Occupation in the area, and there were stories of how the family had to really struggle, hiding family members to prevent them from being killed by the Japanese,' said Dr Wee, who grew up in No 353 Bukit Timah Road. 'They planted vegetables like tapioca in the gardens to survive. So the properties do have a lot of memories for us. But we've been waiting for the market upturn and we think it's a good time to sell now.'

The tender for the site closes on July 18.

DTZ also clarified that the nearly $70 million price for the expressions of interest exercise for the Balmoral Condominium collective sale which it launched earlier this week is an indicative price, and not asking price.

Two more collective sale sites have been put on the market. CB Richard Ellis has launched an expressions of interest for the freehold Makeway View, off Newton Road. The asking price of $66 million works out to about $622 psf ppr inclusive of an estimated $6.32 million DC. The 41,560-sq-ft site has a 2.8 plot ratio.

Credo Real Estate has launched the tender for the freehold Emerald Mansion, at the corner of Emerald Hill and Saunders roads, with an indicative land price of $73 million to $75 million. This works out to about $846 to $870 psf ppr. This is based on a redevelopment scheme with 86,240 sq ft gross floor area and assuming no DC is payable.

mr funny
18-08-06, 17:40
Singapore
Published July 5, 2006


Ardmore Point may topple current record
A new benchmark could be set if the $220m asking price for the prime location is met


By KALPANA RASHIWALA



A NEW benchmark could be set for the price of freehold residential land if owners of Ardmore Point are successful in the collective sale of their homes in the prime Ardmore Park location.


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Ardmore Point: Analysts reckon its reserve price could be 5 to 10% lower than the $1,432 psf ppr asking price, but even if the property is sold at these levels, it would still topple the current record set by Eng Lok Mansion


They are asking for $220 million, which translates to a unit land price of $1,432 psf of potential gross floor area, including an estimated $22.7 million development charge (DC).

Market watchers suggest the actual reserve price set by the owners could be 5 to 10 per cent lower, at $1,289 to $1,360 psf per plot ratio including DC.

But even at these levels, if they are achieved, Ardmore Point will still topple the current record of $1,218 psf ppr set by Eng Lok Mansion in March this year.

'We're confident that with competition from bidders, we'll be able to exceed Ardmore Point's reserve price,' says CB Richard Ellis executive director Jeremy Lake, whose firm is marketing the collective sale. Based on the asking price of $1,432 psf ppr, the breakeven cost for a new condo project on the Ardmore Point site could work out to around $1,950 psf. Using the likely reserve price, the breakeven would be a lower $1,830 psf. That still leaves a profit margin for its developer going by current pricing expectations for coming launches in the area.

Across the road, Wheelock Properties (Singapore) will launch in October its 118-unit condo, Ardmore II, on the amalgamated Ardmore View and Habitat II site at an average $2,250 psf, Wheelock CEO David Lawrence told BT yesterday.

The development will comprise of two 36-storey towers and all 118 units in the project will be four-bedroom apartments of 2,050 sq ft each.

Ardmore Point has a freehold land area of 60,533 sq ft and market watchers say that whoever bags it is also likely to be eyeing the next door Pin Tjoe Court, which is expected to be put up for tender soon.

The two sites will have a combined land area of over 120,000 sq ft - enough to accommodate a new condo with about 165 units averaging 2,000 sq ft. Both sites are zoned for residential use with a 2.8 plot ratio (ratio of potential maximum gross floor area to land area) and a maximum height of 36 storeys.

Ardmore Point's tender closes on August 8.

The existing 20-storey Ardmore Point has 47 units.

Based on the $220 million asking price, owners stand to receive sums ranging from $2.3 million to $7.9 million per unit.

These are about 120 per cent more than what the units would fetch if sold individually.

mr funny
18-08-06, 18:00
Top Print Edition Stories
Published July 21, 2006


More big en bloc sites in wake of Gillman launch
Farrer Court is estimated to cost almost $1b, pipping Gillman Heights


By KALPANA RASHIWALA


(SINGAPORE) Earlier this week, Gillman Heights made the headlines as the biggest collective sale site to hit the market. But an en bloc sale now in the works for another privatised HUDC estate - Farrer Court - could top that.


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Farrer Court: Around $650m is expected to be payable to the owners, and about $320m to the state to raise the plot ratio and to top up the site's lease


The Farrer Court site is expected to cost its potential developer nearly $1 billion in total. This comprises around $650 million payable to the owners, and a further $320 million or so payable to the state to tap a higher plot ratio and for topping up the site's lease to 99 years.

Based on these figures, the unit land price for developers works out to slightly over $400 per square foot of potential gross floor area. The site, in District 10, is a stone's throw from an upcoming MRT station under the Circle Line. The site can be redeveloped into a new condo with about 1,900 units averaging 1,200 sq ft.

The big question is whether developers will have appetite for such large sites given the huge outlay involved.

Gillman Heights, in the Depot and Alexandra roads area, was launched for tender this week and has a reserve price of $529 million. In addition, developers will have to pay the state a further sum of about $89.5 million to raise the plot ratio and top up the site's lease to 99 years, bringing the total unit land price to $352 psf per plot ratio.

Farrer Court's land area of 838,488 sq ft also pips Gillman's, at 836,425 sq ft. Also, Farrer Court has a total of 618 units currently, again higher than Gillman's 608.

But another collective sale in the works - at Pine Grove in the Ulu Pandan and Mt Sinai area - has an even bigger number of existing units at 660. The all-in price (including payments to the state) to deve lopers keen on the 893,178 sq ft leasehold site is said to be around $700 million, or about $380 psf per plot ratio.

Besides these privatised HUDC sites, there are biggish private condominiums, some of whose owners are looking at collective sales. These include Ridgewood (land area of about 672,000 sq ft) and Pandan Valley condo (417,000 sq ft), both near Pine Grove.

Other potential biggish en bloc sites could include Mandarin Gardens in the east coast (with a land area of slightly over a million sq ft) and The Waterside in Tanjong Rhu (706,000 sq ft).

'Many of these private condos, as well as privatised HUDC estates, were developed in the 1980s, when it was fashionable to build big developments on huge sites,' says DTZ Debenham Tie Leung's director Tang Wei Leng. 'Very often, the developers even introduced phases within the projects.'

She notes that some of the huge projects involved foreign funds from the Middle East and Japan, who did a few projects here before withdrawing from the local market. These days, foreign funds that have been investing in the Singapore residential sector include the likes of AIG and Lehman Brothers, of the US. The latter has teamed up with Chip Eng Seng to redevelop the Venus Mansion site in Cairnhill.

'There are many other funds waiting to partner local developers. So there just may be takers for even the huge sites. It depends on whether the prices being sought by the owners make investment sense for the developers and funds, considering the risks they would be taking of parking huge sums in one site, in a single location,' reckons Ms Tang, whose firm was appointed earlier this year to handle the collective sale of Pine Grove.

Property agents, too, have some serious reckoning to do in terms of deciding which jobs to pitch for when they are invited by sales committees of huge estates thinking of doing a collective sale.

Credo Real Estate, which clinched the job to market Farrer Court's en bloc sale a few months ago, studied the matter from several angles. 'We looked at the various privatised HUDC sites and picked Farrer Court. It's in a prime district and one side faces Leedon Heights. And based on the prices we're working on, the collective sale premiums for owners look attractive, at almost 100 per cent.

'Most importantly, we spoke to potential bidders who said that in principle, they would be prepared to make the huge investment involved, possibly as part of a consortium, to reduce the risk,' says Credo's managing director Karamjit Singh. He declined to comment on Farrer Court's reserve price. Farrer Court is zoned for residential use with a 2.8 plot ratio and a 36-storey height limit.

mr funny
18-08-06, 18:02
Singapore Companies
Published July 19, 2006

Chip Eng Seng, Lehman in JV for Cairnhill project

By ARTHUR SIM



MAINBOARD-listed construction company Chip Eng Seng Group will team up with Lehman Brothers Real Estate Partners II to build a high-end residential development in Cairnhill in a 50/50 joint venture.


The site, formerly Venus Mansion, was acquired by Chip Eng Seng earlier this year for $123 million. Raymond Chia, managing director of Chip Eng Seng's property arm, Chip Eng Leong Enterprise - now known as CEL Development - said the development will be worth 'over $200 million' when completed.

The joint venture with Lehman Brothers - through a newly formed company called PH Properties - comes after an earlier venture fell through when they failed to clinch a site near Tanah Merah MRT Station in a public tender in April.

There is no agreement with Lehman Brothers to partner CEL Development 'exclusively' in Singapore.

Even so, more joint ventures are possible. Lehman Brothers (Asia) managing director (private equity) Keith Greengrove said: 'Our experience with CEL so far has been extremely professional in the negotiations and due diligence process, and we look forward to continuing to make investments with them.'

Mr Greengrove pointed out that Lehman Brothers has been investing in Singapore property since 2004 when it bought the Hotel New Otani on River Valley Road - now Novotel Clarke Quay Hotel. It also has a stake in Paradiz Centre in Selegie Road. In March, Lehman Brothers partnered Shimizu Corp in a failed bid for a hotel site at Changi Airport. Mr Greengrove said: 'Lehman Brothers, particularly the real estate group, remains bullish on the Singaporean market.'

The Cairnhill project, which is expected to be launched for sale in Q2 2007, will be its third real estate investment here.

Revealing details on the project, Mr Chia said that they expect to build a 70-unit development with apartments about 2,000 sq ft in size. He added that the break even cost would be about $1,100 psf. He said that the final cost will depend on the type of fittings specified and highlighted that construction materials costs had risen by about 3 per cent over the last year.

Chip Eng Seng, which has large main-contractor jobs like the Housing and Development Board's The Pinnacle @ Duxton, only ventured into property development on its own in 2002 after earlier joint ventures with partners like NTUC Choice Homes. Mr Chia said that property development now makes up two-thirds of its revenue with the remaining one-third coming from construction contracts.

On the latest joint venture, CEL hopes some of its partner's financial finesse will rub off. 'Lehman Brothers can guide us on financing,' he said, by way of explaining how Chip Eng Seng expects to arrange its gearing ratio.

Chip Eng Seng, which requested a trading halt at 3 pm pending the joint venture announcement, was last traded at 18.5 cents.

mr funny
18-08-06, 18:04
Singapore Companies
Published July 18, 2006

Wheelock eyes nearby sites after clinching Habitat One
It will still proceed with October launch of Ardmore II on Habitat II site


By KALPANA RASHIWALA



WHEELOCK Properties (Singapore), which has just bagged the Habitat One site along Ardmore Park, is eyeing adjoining properties for a bigger project.

http://img88.imageshack.us/img88/599/bt445169318072006ft0.jpg (http://imageshack.us)
'If we're approached by the owners of the adjoining sites, we'll look at buying them. If not, we'll go ahead with redeveloping the Habitat One site on its own into a 68-unit condo named Ardmore III. We'll probably launch it in 2008,' Wheelock CEO David Lawrence told BT yesterday.

Wheelock will roll out its 118-unit Ardmore II condo next door in October on the amalgamated Ardmore View and Habitat II site - instead of holding back the freehold project and enlarging it by further merging the site with Habitat One.

'We've so many people waiting to buy Ardmore II, we're going ahead with launching it in October. The average price will be $2,250 psf for the apartments, all of which will be 2,018 sq ft units with four bedrooms,' Mr Lawrence said.

Both Ardmore II and Ardmore III will be 36-storeys high.

Mr Lawrence did not identify the properties next to Habitat One that he's keen to buy, but market watchers observe these would include Heritage Apartments, developed by the Fu family of listed Hotel Properties Ltd (HPL), and The Vantage. Wheelock is a substantial shareholder of HPL.

Mr Lawrence also summed up the group's upcoming residential project launches - Ardmore II this year, followed by 338 apartments on Scotts Road in 2007, and two projects in 2008 - Ardmore III (on the Habitat and any adjoining sites Wheelock manages to buy) and Orchard View at Angullia Park.

The last will be a 36-storey tower with 31 apartments - all around 2,600 sq ft each. It will most likely be launched as a completed project, given the limited number of units. As well, Wheelock hopes to time the project's launch around the completion of the landmark development that will come up on on the nearby Orchard Turn site.

Wheelock's Scotts Road project - which will come up on the The Ascott Singapore/Scotts Shopping Centre site - will have 338 apartments comprising, one, two and three-bedroom units, built above a luxury retail centre.

Wheelock yesterday announced that it had inked a deal with majority owners of Habitat One to buy their 54,980 sq ft freehold site in the prime Ardmore Park location for $180 million, confirming BT's story. Knight Frank brokered the deal.

The price works out to a record $1,228 psf per plot ratio inclusive of a $9.1 million estimated development charge.

Wheelock may buy a small adjoining strip of state land of about 5,388 sq ft - if the Singapore Land Authority is willing to sell it. Acquiring the state land will help lower the unit land price of the Habitat One acquisition by about 6 per cent to $1,155 psf ppr.

Mr Lawrence says Wheelock's breakeven cost for a new luxury condo project on the site will be about $1,900 psf.

'Ardmore Park is the best location in Singapore. It's just like buying at The Peak in Hong Kong or Mayfair in London. Markets go up and down, but these remain the best sites and, long term, you'll make money. We are very confident buying this site.'

mr funny
18-08-06, 18:08
Top Print Edition Stories
Published July 17, 2006


En bloc fever cools for developers
Interest remains high in the prime districts but sites in suburban areas are left on shelf


By UMA SHANKARI


(SINGAPORE) Midway into the year, the en bloc fever seems to be benefiting home-owners in the prime districts the most, with developers showing most interest in sites in those areas.


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Plans afoot: City Developments intends to build luxury residences at its recently purchased Lucky Tower site (above) located at Grange Road


Not doing as well are sites in other parts of Singapore, as well as those in the prime district with high asking prices. Overall, the en bloc fever, while strong on the part of sellers, is waning when it comes to developers.

According to data provided by property consultancy CB Richard Ellis (CBRE), collective sale sites left behind in the first six months of this year outnumber those sites snatched up by developers. Only 31 sites, with a combined value of over $4 billion, were sold as of end-June, while another 39 sites launched this year with tenders closing by end-June are yet unsold.

Home-owners in the prime District 9 and 10 are seeing the most interest. Of the 31 en bloc sites sold so far, 20 are in these two districts. By contrast, a lot of the sites left behind on the shelf are in suburban areas. The trend means that future buyers can expect a substantial increase in the number of apartments on offer in the prime districts in about two years' time.

Right now, the 20 sites comprise about 1,100 units, but more than 2,000 units could be potentially developed.

Apartments on these 20 sites are widely expected to cater to the high-end segment, and with property prices in the luxury market on the upswing, it is no wonder that developers are choosing to concentrate their resources on the prime districts.

'Developers are looking at the high-end market as the market that will move,' said Foo Suan Peng, executive director of investment sales at Knight Frank. 'From their experience, the upgraders' segment of the market is still weak. Developers have confidence in the high-end market.'

He points to the recent launches of The Sail @ Marina Bay and St Regis Residences as two upmarket projects that have seen good take-up rates.

The demand for luxury properties is driven mainly by international investors, who are 'cash-rich and price-insensitive'. These investors are mainly interested in the prime districts, leading developers to snap up re-development sites there. But with supply of such prime sites increasing, the bargaining power is clearly with developers. For example, Silver Tower located on Cairnhill Road is still under negotiation.

Observers say that some prime sites are still on the table as developers may be unwilling to pay the prices asked. 'Prices have been moving too much already and are in an area that is becoming too painful for developers,' said Mr Foo. 'They have to pause to see where the market is going.'

However, this does not seem to have reduced sellers' appetite. Throughout July and August, at least another 14 sites will see their tenders close.

Among them are several located in prime locations - such as Orange Grove Condo at the corner of Orange Grove and Stevens roads, whose owners are asking for $175 million, which works out to $1,143 psf; Ardmore Point, located in the prime Ardmore Park location, whose going price is $220 million, which translates to a unit land price of $1,432 psf; and Grange Tower near Orchard Road, which is going for $188 million, or $1,255 psf. The latter two prices, could set new benchmarks for the price of freehold residential land in Singapore.

'I think that the en bloc fever will continue but the buyers will be more selective,' said City Developments group general manager Chia Ngiang Hong at the recent media launch of the property developer's latest high-end project.

CityDev managing director Kwek Leng Joo agreed, and added that he expects developer interest to continue to be strong for the prime districts. 'Finally, it boils down to location, location, location,' said Mr Kwek. CityDev recently bought the Lucky Tower site in Grange Road for $383 million, or $1,134 psf, and intends to develop the site into a luxury residential development in two years.

Some feel that for en-bloc sites outside the prime areas, a way to sell is to lower the asking prices.

mr funny
18-08-06, 18:09
Property
Published July 25, 2006


Flamingo Valley up for en bloc sale


FLAMINGO Valley, a residential development in the Siglap area, has been put up for en-bloc sale. Separately, three smallish sites off Bukit Timah Road have also been put on the market.


The three sites, with a combined area of 116,861 square feet, are Century Ville, Le Marque and Villa Margaux. The asking price is pegged at $695 per square foot per plot ratio (psf ppr), or $156.6 million.

Marketing agent Newman and Goh said yesterday that the site, with a plot ratio of 2.1, has potential to be re-developed into a luxury project with 80 units of nearly 3,000 sq ft each. The tender closes on Aug 23.

Flamingo Valley, which comprises 185 apartments, sits on a 335,161 sq ft site. Colliers International is handling the sale. The asking price is pegged at between $195 million and $198 million, or $417-423 psf ppr, including an estimated development charge of $820,000.

The site can be re-developed into a five-storey condominium of about 300 apartments of 1,500 sq ft each. The tender closes on Aug 22.

mr funny
18-08-06, 18:16
Property
Published July 27, 2006

SingTel set to launch 71 Robinson Rd tender

By KALPANA RASHIWALA


SINGAPORE Telecom is getting ready to launch a tender for 71 Robinson Road, which now houses Robinson Road Post Office and was formerly known as Crosby House, sources say.


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71 Robinson Road: Total land cost for the site could be about $110 million, analysts suggest, reflecting a unit land price of about $400 psf of potential gross floor area


And although SingTel reportedly secured provisional permission last year to redevelop the property into a slightly over 50 storey project comprising more than 300 apartments, six levels of car parks and commercial use on street level, market watchers now think potential buyers could consider redeveloping the site into a full commercial project instead.

The latter would enable a developer to ride on rising office rents amid tightening supply.

Analysts suggest the total land cost for the site could be about $110 million, reflecting a unit land price of about $400 psf of potential gross floor area.

These figures include the purchase cost payable to SingTel plus payments to the state for intensifying the use of the site and topping up the lease from the remaining 45 years to the original 99 years.

The site is now zoned for commercial use with an 11.2 plot ratio under Master Plan 2003.

URA's provisional permission for a residential scheme with commercial use on ground floor was based on the same plot ratio - but is subject to the site being rezoned from commercial use to residential with commercial use on the first storey.

Based on an 11.2 plot ratio, a development can be built up to a gross floor area of 274,746 sq ft - reflecting a significant enhancement from the existing 99,383 sq ft.

BT understands that SingTel has appointed a property consultant to handle the sale of the leasehold property.

Sources tip the appointee to be Credo Real Estate, which handled the sale of SingTel's Old Holland Road and West Coast road sites. Credo declined to comment yesterday.

71 Robinson Road has a land area of 24,531 sq ft. SingTel has been divesting non-core property to redeploy resources to its core telco business.

In February, SingTel sold the freehold former telephone exchange at 859 Old Holland Road for $30 million or $513 psf of net land area to a company whose ultimate shareholders include Indonesia's Tjugito family, linked to the Eagle Indo Group.

The new owner plans a cluster housing project.

SingTel has also sold a leasehold site at West Coast Road to Frasers Centrepoint at a price that reflects an all-in land cost of about $220 psf per plot ratio inclusive of payments to state.

Another property that SingTel divested this year is a prime leasehold site at Hillcrest Road, sold to MCL Land in May for $102.5 million. MCL plans a cluster housing development.

mr funny
18-08-06, 18:22
Property
Published July 27, 2006

Thomson Road property put up for enbloc sale
Market watchers expect Derbyshire Mansions to fetch about $50m


By KALPANA RASHIWALA



THE owners of Derbyshire Mansions in Thomson Road near United Square are teaming up for a collective sale for their 36,098 square foot freehold site.


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Derbyshire Mansions: The 36,098 sq ft freehold site could yield up to 74 units averaging 1,300 sq ft


Market observers expect the site to fetch about $50 million or $496 per square foot of potential gross floor area including an estimated $160,000 development charge.

The site is zoned for residential use with 2.8 plot ratio - the ratio of potential gross floor area to land area - and a 36-storey height limit.

This could yield up to 74 units averaging 1,300 sq ft, says Jones Lang LaSalle, which is marketing the property through a tender that will close on Aug 24.

Based on the $50 million price expectation, the proceeds for owners of the existing 33 units housed in a 12-storey block reflect a collective sale premium of about 60 per cent.

Another property put on the market earlier this week is a Good Class Bungalow at Bin Tong Park being offered by its owner, The Asia Life Assurance Society.

The vendor is part of the Asia General Holdings group, which recently sold Asia Insurance Building at Finlayson Green and Hotel Asia in Scotts Road to The Ascott Group, and White House Park Apartments in Stevens Road to Novelty Group.

The asking price for the Bin Tong Park bungalow is said to be $11.8 million to $12.3 million.

This works out to around $450 to $470 per square foot of land area.

A single-storey detached house stands on the 26,254 sq ft freehold site.

The tender for the property, which closes on Aug 21, is being handled by Credo Real Estate.

mr funny
18-08-06, 18:27
Property
Published August 1, 2006


Two more District 9 sites up for collective sale

By UMA SHANKARI


ANOTHER two freehold sites are up for en bloc sale in the coveted District 9 - as developers continue to show the most interest in offerings in the prime districts.


Le Chateau, a residential development site at 67 Cavenagh Road, has been put on the market for $51.1 million - or $446 per square foot per plot ratio (psf ppr) - including an estimated development charge of $290,000 and state land alienation cost of $5.8 million.

And nearby, owners of Curzon Lodge at 100 Kampong Java Road are also putting their homes up for sale - for $30.2 million, or $480 psf ppr, inclusive of a development charge of $152,000.

Colliers International, which is marketing Le Chateau, and First Tree Properties, the marketing agent for Curzon Lodge, are optimistic that the sites will draw strong interest.

Curzon Lodge, in particular, has attracted many enquiries since it was launched on July 19, said First Tree.

As for Le Chateau, Colliers' director for investment sales Ho Eng Joo said: 'Given the site's proximity to Orchard Road, we expect keen interest from developers.'

Le Chateau, which occupies a plot of 43,149 square feet, is a five-storey development of 35 apartments and maisonettes.

The land is zoned for residential use under the 2003 Master Plan with a gross plot ratio of 2.1.

About 100 units with an average size of 1,100 square feet can be built on the site.

'Provisional planning permission has been obtained for a proposed residential development comprising three seven-storey and one five-storey blocks with a total of 89 units,' said Mr Ho. A buyer may also choose to enlarge the site by amalgamating neighbouring state land of about 11,350 square feet.

If the asking price is met, each of the 35 owners will receive between $1 million and $1.8 million for their units - which represents a 80-90 per cent en bloc premium, according to Colliers.

Curzon Lodge is slightly smaller, with a site area of 29,772 square feet. The development now has 20 units and has a permissible plot ratio of 2.1.

The 20 owners will make close to $1.5 million each, said First Tree, which will give them a 76 per cent en bloc premium compared with the last transacted price of $850,000.

A new development can yield about 52 units of about 1,200 square feet each. First Tree believes that Curzon Lodge's location will be a strong selling point - the site is close to Newton Circus and minutes from Newton MRT Station.

The tender for Curzon Lodge closes on Aug 18, while that for Le Chateau on Aug 29.

mr funny
18-08-06, 19:24
Singapore
Published August 16, 2006

Pin Tjoe Court up for en bloc at $220.9m
Buyer likely to be the same party as that for Ardmore Point next door


By KALPANA RASHIWALA



ARDMORE Point, offered for sale through a tender that closed last week, is yet to be awarded - but the owners of Pin Tjoe Court next door are going ahead and putting their homes up for collective sale.


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For sale: Based on Pin Tjoe Court's asking price, owners stand to receive about $6 million per apartment


The asking price of $220.9 million reflects a unit land price of $1,432 per square foot per plot ratio (psf ppr) including an estimated $20.6 million development charge (DC). The unit land price is identical to that sought for Ardmore Point.

And the reserve prices of both properties are also said to be similar - at slightly over $1,300 psf ppr.

In fact, CB Richard Ellis, which is marketing both sites, says it is quite likely the same party will emerge as buyer for the two, given that the combined site area of 120,757 sq ft creates an opportunity to build a substantial project - a freehold condo with about 165 units averaging 2,000 sq ft in a prime location.

Both sites are freehold and zoned for residential use with a 2.8 plot ratio - the ratio of potential gross floor area to land area - and 36-storey height limit.

'The bigger site area from combining the two plots would give the developer economies of scale as well as design flexibility to develop a more lavish and unique product - a 36-storey development with generous condo facilities, which in turn will be able to command a higher selling price,' says CB Richard Ellis executive director Jeremy Lake.

The new development should have unobstructed views towards Nassim Road and Bukit Timah.

BT understands that the tender for Ardmore Point, which closed last Tuesday, attracted four bids. The top bidder is said to have been Far East Organization with about $196 million or $1,288 psf ppr inclusive of an estimated DC of $22.7 million. This marks a new benchmark price for residential land in Singapore but is still shy of the reserve price set by Ardmore Point's owners.

Market watchers are also not ruling out Wheelock Properties (Singapore) as a contender for both the Ardmore Point and Pin Tjoe Court sites. Last month, Wheelock bought Habitat One across the road for $180 million or $1,228 psf ppr including DC, but its unit land price for that acquisition will be lowered to $1,155 psf ppr if Wheelock is successful in buying a small adjoining strip of state land.

Property market watchers reckon Far East and the other bidders for Ardmore Point will be eyeing Pin Tjoe Court as well and may not commit their best offer for Ardmore Point until the outcome of the Pin Tjoe Court tender is clearer.

Pin Tjoe Court, at 7 Ardmore Park, is on 60,224 sq ft of land and comprises 32 apartments and two penthouses. Owners of 30 units, controlling 88.5 per cent of share values, have agreed to a collective sale, which is being carried out through a tender that closes on Sept 20.

Based on the $220.9 million asking price, the current owners stand to receive about $6 million per apartment, while the penthouses will fetch $12 million each - more than double the values if sold individually.

mr funny
24-08-06, 04:07
Singapore
Published August 23, 2006

MCL Land gets nod for Dunearn site


MCL Land has received the green light from the Singapore Land Authority to upgrade the lease tenure and change the use of a redevelopment site formerly owned by SingTel.


The property developer won the 256,485 sq ft site in a public tender with a bid of $102.5 million in May. On top of this, MCL Land will pay $40 million to the government for bringing up the lease back to 99 years and changing the zoning from utility to residential.

Lui Seng Fatt, regional director and head of investments at marketing consultants Jones Lang LaSalle, said that MCL Land is now also looking to buy two adjoining plots of state land totalling 15,510 sq ft so as to increase the overall size of the site.

Mr Lui said MCL Land is not likely to seek planning approval for a condominium development either. Instead, the developer will maintain the building height restriction and build a combination of cluster housing and conventional terrace houses.

Together with the amalgamation of state land, there could be up to 170 units.

Noting that there are already several condominium offerings along Dunearn Road, Mr Lui said that brand new terrace houses in Districts 9, 10 and 11 are quite rare.

Freehold terrace houses by Far East Organization at Greenwood Avenue now sell for about $2.1 million. The price for MCL Land's 99-year leasehold houses could be between $1.75 million and $1.8 million.

mr funny
24-08-06, 04:10
Singapore Companies
Published August 22, 2006

UOL close to buying Nassim Park: sources
Collective sale for freehold site may go for record $390 million


By KALPANA RASHIWALA



UOL Group is close to hammering out a deal to buy the prime Nassim Park through a collective sale, sources say.


The price for the freehold site is understood to be around the $390 million mark, which reflects a unit land price of about $1,150 psf of potential gross floor area inclusive of an estimated $8 million development charge (DC).

If a deal is eventually inked at the $390 million level, it will set a new record for a collective sale. The current record of $385 million was set by Waterfront View in Bedok earlier this year.

Nassim Park was completed just 14 years ago, in 1992. The 245,135 sq ft site is zoned for residential use with a 1.4 plot ratio (ratio of potential maximum gross floor area to land area) and a maximum height of four storeys under Master Plan 2003.

The site can be redeveloped into a new project with about 160 apartments ranging in size from about 1,900 sq ft to 2,200 sq ft.

Market watchers reckon the breakeven cost for a new luxury condo could be anywhere from $1,550 to $1,800 psf - depending on the quality of the finishes and the design.

The property was marketed through an expression of interest exercise which closed on June 21.

The reserve price is understood to have been around the $1,100 psf per plot ratio (inclusive of DC) level although Savills Singapore, Nassim Park's marketing agent, had said in May when the site was launched that the asking price was $410 million or $1,218 psf ppr including DC.

Savills declined to comment when contacted.

The existing Nassim Park has 104 strata-titled apartments and townhouses. Market watchers estimate that based on the price expected to be transacted, Nassim Park's owners stand to pocket sums that could be 50-80 per cent more than what the units would have fetched had they been sold on an individual basis.

Market watchers note that Nassim Park will be the poshest site UOL has bought to date.

It remains to be seen if it ties up with some of its usual partners - like Kheng Leong, Low Keng Huat and United Industrial Corp/Singapore Land - for its latest acquisition.

mr funny
24-08-06, 04:12
Top Print Edition Stories
Published August 22, 2006


Horizon Towers fails to fetch minimum price
All 4 bids understood to be below $500m reserve price




(SINGAPORE) It was pitched as the biggest collective sale deal ever, with a price tag of $500 million. But the tender for the leasehold Horizon Towers which closed last week failed to attract this minimum price set by the owners.


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Overpriced? The developer who buys Horizon Towers will have to pay about $31 million to top up the lease to the original 99 years.


BT understands that notices made available to Horizon Towers' owners recently revealed that the tender attracted four bids, all below the reserve price. Sources say the bidders declined requests to raise their bids subsequently to meet the reserve.

Horizon Tower's marketing agent, First Tree Properties, is now expected to team up with other consultants to look for a buyer through private treaty.

The estate has a land area of 204,742 sq ft and is on a site with a remaining lease of 72 years. The developer who buys Horizon Towers will have to pay about $31 million to top up the lease to the original 99 years. Apparently, no development charge is payable. The $500 million reserve reflects $835 psf of potential gross floor area inclusive of the lease-upgrading premium and based on a 3.1 plot ratio (ratio of maximum potential gross floor area to land area), according to an earlier report.

A seasoned consultant said he was not surprised by the outcome for Horizon Towers as he considered it overpriced for its location, at Leonie Hill, given the leasehold tenure and the huge risk involved because of its big size.

mr funny
24-08-06, 04:15
Singapore
Published August 18, 2006


Owners of 2 apt buildings join forces to sell en bloc


OWNERS of two residential developments on Cavenagh Road are joining forces to sell their apartment buildings as one large collective en bloc sale site.


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Clemenceau Court: Together with Cavenagh Mansion, the combined site could yield 164 units of 1,000 sq ft each and the breakeven price for a new development would be $850-900 psf


The owners of the 60-unit Clemenceau Court have decided to launch their site next for sale by tender in conjunction with an invitation to make an offer for the neighbouring 18-unit Cavenagh Mansion.

Marketed by Charles Chua of Propnex, the Clemenceau Court site measuring 38,131 sq ft is going for about $75 million while owners of Cavenagh Mansion (19,813 sq ft) are asking for $27 million.

Mr Chua has worked out that the possible amalgamation to the sites makes them more attractive.

With a plot ratio of 2.1, Clemenceau Court works out to be $940 per sq ft per plot ratio (psf ppr) including development charge. Even with the cost of an available 9,688 sq ft of state land for $4.9 million, it will still cost $798 psf ppr.

With the same 2.1 plot ratio, Cavenagh Mansion will cost $652 psf ppr. With the cost of an available 5,059 sq ft of state land, it will cost $569 psf ppr.

Together, the combined site lowers the price to $642 psf ppr. In such a scenario, the site could yield 164 units of 1,000 sq ft each and the breakeven price for a new development would be $850-900 psf.

mr funny
25-08-06, 00:49
Top Print Edition Stories
Published August 24, 2006


EXPECTED RISE IN DEVELOPMENT CHARGES
DC hikes could dent en bloc market
But prime sites may be spared given the luxury housing boom


By KALPANA RASHIWALA


(SINGAPORE) The en bloc market could take a hit when development charge (DC) rates go up on Sept 1, property consultants say. But much will still boil down to supply and demand.


They reckon that DC rates - payable to the state for enhancing a site's use or developing a bigger project on it - could rise as much as 15-20 per cent for non-landed residential use in prime locations like Ardmore Park, Tomlinson Road and Grange Road, where collective sales have set new benchmark prices in the past six months.

'If owners stick to the same minimum land price quantum, the total land price to developers will increase by the quantum of the DC hike,' says Knight Frank executive director Foo Suan Peng. 'This means the unit land cost in terms of per square foot per plot ratio will be increased, without any benefit to owners. It has a dampening effect on the collective sale market.'

But not all en bloc sales will be affected. Collective sale sites with little or no DC component like Derbyshire Mansion and Grange Tower will be spared any blow from DC rate hikes.

There are also sites in locations like Cairnhill and Newton with a high development baseline or where the existing development's gross floor area is high relative to what is allowed under the current Master Plan. Such sites are liable for either no or little DC payment if they were to be redeveloped, says Mr Foo.

But sites with a significant DC component as a percentage of total land value could suffer from a substantial increase in DC rates. An example is Minton Rise, where the reported DC estimate of $84 million works out to about 27 per cent of the total land cost.

'For some of these cases, it may make it harder for owners to achieve, or for developers to pay, reserve prices - because of the higher DC rate,' says CB Richard Ellis executive director Jeremy Lake.

Agreeing, Credo Real Estate managing director Karamjit Singh says: 'There are cases where the DC forms about 20-30 per cent of total land cost. In such a case, if the DC rate goes up by, say, 10 per cent, it could, overnight, wipe out around 2.5-4.3 per cent of owners' land value. This can be quite significant - especially if the collective sale premium is not that fantastic - and reduce owners' incentive to go for an en bloc sale.'

But Jones Lang LaSalle's regional director and head of investments Lui Seng Fatt reckons the market is unlikely to be shocked by any DC rate rise because the last increases six months ago were so steep.

DC rates - which are specified according to land use (such as non-landed residential, landed residential and commercial) and location - are published by the Ministry of National Development in consultation with the Chief Valuer, who takes into account current market value.

The increases that kicked-in on March 1 this year were among the biggest in six years. For non-landed residential use - the group that often applies to collective sale sites - rates in the prime Ardmore/Claymore/ Draycott location went up 19 per cent. Other popular en bloc haunts like River Valley, Leonie Hill/St Thomas, One Tree Hill/Angullia Park and Cairnhill saw smaller increases of 6 to 15 per cent.

Market observers expect another round of substantial hikes for non-landed residential DC rates in prime locations, pointing out that since March 1, en bloc deals in such areas have continued to set benchmark prices that reflect land values significantly higher than those implied by the March 1 DC rates.

Examples include Beverly Mai in Tomlinson Road and Lucky Tower in Grange Road. Their respective transacted prices of $1,184 and $1,134 per square foot per plot ratio inclusive of DC were 68 per cent and 110 per cent above DC-rate implied land values for the area.

Similarly, Habitat One was sold last month at $1,228 psf ppr - 50 per cent higher than the $818 psf ppr DC rate-implied land value for the area.

CBRE predicts that non-landed residential DC rates in Ardmore Park, Grange Road and Tomlinson Rd could go up 5-10 per cent come Sept 1.

Colliers International predicts that rates in places like Ardmore and Angullia Park will rise by 10-15 per cent.

JLL expects a bigger increase of 18-22 per cent in the central areas of the prime districts 9, 10 and 11. But JLL's Mr Lui reckons that availability of sites is a more important factor than any DC rate rise - alluding to the large supply of en bloc sites now weighing down the market.

He believes that developers will still be willing to buy in prime locations like Draycott, Orange Grove, and to some extent Newton, regardless of a DC rate rise. But they may not be so willing to shoulder the burden of a higher DC in less choice areas - particularly for huge sites like former HUDC estates.

In such cases, owners may have to bite the bullet and cut their reserve prices. 'It boils down to the scarcity value of the site and how much demand there is for it,' Mr Lui says.

mr funny
06-09-06, 21:18
Property
Published August 31, 2006


Silver Tower penthouse sold for $6.12m
$1,020 psf price reflects premium for condo's en bloc potential: analysts


By KALPANA RASHIWALA



THE collective sale of Silver Tower has yet to be concluded, but a penthouse in the freehold development in Cairnhill Road was sold yesterday for $6.12 million at an auction by Colliers International.

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Silver Tower: Without factoring in en bloc potential, the penthouse is said to be worth $4.5m or $750 psf


The price works out to $1,020 per square foot based on the 5,995 sq ft strata area of the three-level penthouse - a price market watchers said reflects a premium for the property's en bloc potential.

A source suggested that based on its individual sale value, without factoring in potential for an en bloc deal, the penthouse could have fetched about $4.5 million or $750 psf. Silver Tower is about 20 years old.

BT understands the penthouse had been on the auction circuit for at least three years. It was sold by its mortgagee, understood to be Hong Leong Finance. Three years ago, the mortgagee was said to be asking for $3.8 million for the unit.

The buyer is said to be a Chinese individual from the region. The unit, #08-04, has a private pool and is tenanted until May 2007 at $4,000 a month.

BT understands that despite paying a hefty premium for the penthouse, the new owner stands to reap a further $1 million or so if an en bloc sale of Silver Tower proceeds at the target price of $168 million. Based on this price, the owner would be able to collect about $7 million-plus for his unit.

Savills Singapore, which is marketing the en bloc sale of Silver Tower, declined to comment yesterday except to say the collective deal is still under negotiation.

Colliers also sold three other properties at yesterday's auction. One was a single-storey, freehold detached house with a land area of 6,183 sq ft in Sommerville Road off Upper Serangoon Road. It fetched $1.7 million. Another was a third-storey walk-up apartment in Lorong 15 Geylang. The 999,999-year leasehold property with 1,517 sq ft strata area fetched $310,000.

Colliers also sold a three-storey JTC detached factory at 6 Woodlands Loop for $4.88 million. The property is on a site with 30 years' lease starting September 1994 with an option to renew for 30 years. All four properties sold yesterday were mortgagee sales.

mr funny
06-09-06, 21:27
Top Print Edition Stories
Published September 1, 2006

Waiting game seen for collective sales
DC hike impact varies from $0-$50 psf per plot ratio


By KALPANA RASHIWALA



(SINGAPORE) Property owners and developers are pondering their next move in the collective sale game as they weigh the impact of the hike in development charge rates on en bloc sales.


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Will owners have to trim their price expectations? Or will developers bite the bullet and pay owners what they ask if the outlook for the high-end residential sector remains optimistic?

'For deals under discussion, it'll be a matter of who blinks first over the next month or so,' said Knight Frank executive director Foo Suan Peng.

He and other property consultants whom BT spoke to last night said that they have some en bloc cases with little or no DC component - in which case the rate hikes have either zero or little impact. An example is Grange Tower, which has no DC.

As for collective sales with a more sizeable DC component as a percentage of total land price, the DC rate hike will jack up the total land cost to the developer, assuming that the owners stick to their reserve price. But the extent varies.

In the case of Ardmore Point in the Ardmore Park location where the DC rate has increased by 36 per cent, the total DC quantum will increase by $48 psf per plot ratio or $8.2 million to $30.9 million. That would be under 4 per cent of the total land value of the prime freehold site.

Knight Frank's Mr Foo reckons yesterday's DC hikes could raise total land cost by zero to 3 per cent for the cases that his firm is handling.

Giving the impact in terms of unit land price, Jones Lang LaSalle's regional director and head of investments Lui Seng Fatt estimates yesterday's rate hikes will translate to zero to $30 psf ppr in additional cost for the collective sale sites that his firm is marketing.

CB Richard Ellis executive director Jeremy Lake sums up the work ahead for property consultants: 'We have to look at the impact of the changes and advise owners. Where the reserve price has been set, we've to see how developers react to the higher cost, whether it has any impact on their bids.'

'Ultimately, the impact will depend on the appeal of the site, how significant the DC component is, and how realistic the owners' price is,' he added.

Mr Lui said that going forward, owners' expectations would have to take into account the rate hikes, 'especially in areas with ample supply of sites'.

Giving a developer's perspective, City Developments' group general manager Chia Ngiang Hong said: 'The increase in DC rates will certainly have an impact on the assessment on all our future property acquisitions.'

As for its current land bank, the impact will be nominal as most of CDL's projects in the pipeline have already secured planning approvals and have thus locked in the DC rate.

Putting things in perspective, yesterday's DC rate hikes might not be such a bad thing after all.

'They reflect the increased value of property, backed by a strong, thriving economy,' as Mr Chia says.

mr funny
06-09-06, 21:28
Singapore
Published September 1, 2006


PROPERTY
Kovan MRT site now open for bids

By UMA SHANKARI



A 1.76 ha land parcel zoned for residential use at Simon Road - next to Kovan MRT station - is now open for application, said the Urban Redevelopment Authority (URA) yesterday.

'This site is one of the most attractive residential sites on the Government Land Sales Programme for the second half of 2006,' said Nicholas Mak, director of research and consultancy at Knight Frank. 'The potential development for this site will be a mass-market suburban condominium, where a majority of the apartments would be the 3-bedroom types.'

URA estimates that 535 units could be built on the 99-year leasehold site, which has a 3.5 plot ratio - giving it a maximum gross floor area of 61,700 sq m. Mr Mak expects it to fetch between $200-$235 million, which works out to between $300-$350 per sq ft per plot ratio (psfppr).

'Even though the price increase of the mass-market suburban condominiums has been much lower than that of the high-end residential segment, such development sites with close proximity to the MRT has always proven to be very popular with developers,' he said. Savills Singapore agreed with the assessment, pointing out that the adjacent Kovan Melody land parcel was awarded in 2003 at $255 million or $268 psfppr.

'The total land value (for the new site) may be around $180-$200 million,' said Wallace Chu, senior manager for research and consultancy at Savills.

'We would expect the current developer of Kovan Melody to be one of many interested parties along with local developers who are experienced in the mass market projects,' he added. Kovan Melody was developed by Wing Tai and NTUC Choice Homes.

The sale site is on the government's reserve list, which means that it will only be put up for tender if a developer's indicated minimum bid price is acceptable to the government.

mr funny
08-09-06, 01:56
Property
Published September 7, 2006

IRAS to auction off two plots of land at Sixth Ave
They are expected to fetch a combined price of $2.8-3m


By KALPANA RASHIWALA


THE taxman is understood to have put two adjoining plots of land adding up to 7,565 sq ft at Sixth Avenue up for auction.


The freehold plots - next to the Avenue Park condominium being developed by Keppel Land and Singapore Land - are expected to fetch a combined price of about $2.8 million to $3 million, market watchers say. This represents $370 to $396 per square foot (psf) of land area. Both plots are registered under the same owner, who is understood to have defaulted on property tax payments. The Inland Revenue Authority of Singapore (IRAS) takes possession of property and puts it up for sale as a last resort to recover property tax.

The Sixth Avenue site is vacant and can be redeveloped into a pair of semi-detached houses, a bungalow or possibly three terrace homes.

The property will be auctioned by Colliers International at 2.30 pm on Sept 27 at the Amara Hotel.

Last year, BT reported that two properties were put under the hammer by the taxman.

One was a 56,355 sq ft freehold site at Yio Chu Kang, sold to Novelty Group for $12.6 million or $224 psf at an auction in May 2005. The other, sold at the same auction, was a 999-year leasehold three bedroom apartment at 81A Lorong K Telok Kurau, which fetched $800,000.

Market watchers do not expect KepLand and SingLand to buy the Sixth Avenue sites with a view to amalgamating them with their existing Avenue Park plot, since the latter has a regular shape.

The duo are planning to redevelop their 172,821 sq ft freehold site into a 193-unit condo that is expected to be launched in the first half of next year.

mr funny
08-09-06, 01:58
Property
Published September 5, 2006

Somerset site up for en-bloc sale


A 13,404 sq ft freehold residential site in the prime Somerset area is up for collective sale.


Owners of the residential site - the 10-unit Mayer Mansion at Devonshire Road - are asking for $38.5 million for the property, inclusive of a development charge of $507,000. The site has a 2.8 plot ratio, which brings the asking price to $1,026 per square feet per plot ratio (psf ppr).

The site has a building height limit of 36 storeys. Richard Quek, managing director of PMC, the property consultancy handling the sale, says that as many as 30 units of 1,250 sq ft each can be built on the site.

'Sites in the prime Orchard Road area launched over the past 18 months generally have been big-ticket items, requiring massive development capital,' says Mr Quek. 'Smaller developers looking to develop upmarket luxury projects in the area, therefore, have been shut out of this market segment. In this regard, the Mayer Mansion site, with a plot size of 13,404 sq ft, affords a rare opportunity for smaller developers wishing to develop an upmarket exclusive project.'

But market watchers told BT that the asking price is relatively high. If a developer pays $1,026 psf ppr for the site, the breakeven cost is estimated to be around $1,500 psf ppr.

The site - about two minutes' walk to the Somerset MRT station - is in an area that is expected to see increased activity once shopping malls at the former Glutton Square and Somerset MRT sites are complete in about three years. Nearby residences are selling well. The Metz, a luxury 169-unit condo by MCL Land launched in November 2004 at about $1,238 psf, is fully sold, while the 157-unit Ritz Residences has sold about 80 per cent of the 117 units released so far in a soft launch - at an average of at least $1,400 psf.

If the asking price is met, the 10 owners of Mayer Mansion stand to make around $3.8 million each.

guest
18-09-06, 18:20
Singapore
Published September 12, 2006

Hearing on Eng Lok Mansion sale adjourned
Strata Titles Board hears 80-year-old widow Chow's views about sale


By UMA SHANKARI


MORE than 60 unit owners in Eng Lok Mansion have to wait for at least another week to see if the sale of their property will go through.


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Eng Lok Mansion: Madam Chow and her son are the only two parties to hold out in the en-bloc sale to developer Napier Properties


Yesterday, the Strata Titles Board heard the views of 80-year-old widow Chow Ai Hwa, who is contesting her 62 neighbours to stop the collective sale of her estate Eng Lok Mansion, a prime residential site next to Gleneagles Hospital in Napier Road.

After hearing evidence from both sides, the Board's tribunal decided to adjourn. Both Eng Lok and Madam Chow now have until Sept 18 to file their submissions, after which another date will be set for the verdict.

Madam Chow and her son are the only two parties to hold out in the en-bloc sale to developer Napier Properties. Last month, Madam Chow turned to the Strata Titles Board to block the sale.

She argued that Napier Properties' $138 million offer, which would net each unit owner $2.2 million, was insufficient.

In addition, she said that owners of bigger units - such as herself and her son - should be entitled to a larger payout than owners of smaller units.

At yesterday's hearing, lawyer David De Souza and his partner Jeanette Lee, who act for Eng Lok, called property consultancy Chesterton, which did the valuation on Eng Lok, to give evidence.

Chesterton said that the division of the proceeds was based on share value, rather than unit size.

This is because it is not clear if there is a difference in the market price between the larger units and the smaller units, explained Chesterton at the hearing.

As for Madam Chow, she took the stand to express her views. She also cross-examined Eng Lok's witnesses.

3rd world city!
21-09-06, 00:34
Reuters

FEATURE-Singapore housing boom brings out ghosts, feuds
Wed Sep 20, 2006 9:06 AM ET

By Sebastian Tong

SINGAPORE, Sept 20 (Reuters) - As neighbourhood spats go, Chow Ai Hwa's legal battle to ensure that her husband's ghost has access to his former home in Singapore is unusual.

With a rebound in the long-depressed real estate market and a lifting of height restrictions for residential blocks, developers are buying up low-rise buildings in prime locations, such as the one where Chow lives, in order to tear them down and replace them with denser, more profitable housing.

But Chow prefers to keep her apartment. She believes the spirit of her dead husband would become a "homeless, wandering soul" if their home of 37 years was demolished. The 80-year-old widow is suing 62 neighbours who accepted a developer's offer, in a bid to stop the sale of the building.

"I like where I live and I don't want to change my surroundings," Chow told Reuters, adding that the developer offered about S$2 million ($1.28 million) for her apartment.

As developers such as Bukit Sembawang Estates <BSES.SI> and Wing Tai Holdings <WTHS.SI> tear down blocks that are just a few decades old, some critics argue that a relatively young nation such as Singapore, which became independent in 1965, should start to cherish its modern landmarks and recent heritage.

PEDIGREE PROPERTIES

Architectural pedigree is no protection against the wrecker's ball as Moshe Safdie -- the famous architect whose design was picked for Singapore's first casino -- discovered.

A landmark apartment block that he built in Singapore, barely 25 years ago, is set to be demolished and replaced by a project twice its present 17-storey height. For a recent story on Safdie, please click on: [ID:nSIN42563]

The size and frequency of such deals, concentrated in prime districts around Singapore's city centre, have increased since last year when a recovery in the property market gained momentum.

Housing prices are set to rise for the third straight year, and some new luxury projects are selling at levels -- in terms of price per square foot -- last seen in 1996, before the Asian financial crisis.

Collective, or "en bloc", property sales rose to S$5.6 billion ($3.56 billion) in the first six months this year, or more than double the amount in the whole of 2005.

But these collective sales often lead to bitter fights between neighbours, some of whom prefer to keep their homes rather than sell out to the developers. Officials have been brought in to mediate in 34 such deals this year, up from 14 cases in 2005.

BRINGING OUT THE GREED

"These sales bring out the greed in certain people," said Lui Seng Fatt, head of investments at property consultancy Jones Lang LaSalle Asia Pacific.

This was to be expected, he said, because owners stand to get 30 to 80 percent more in a collective sale than they would from an individual sale on the open narket. By selling "en bloc" they become millionaires overnight.

Those who don't want to sell their homes say the rules favour neighbours who do. Under Singapore law, housing estates can be sold collectively without the unanimous approval of all owners.

If a block is less than 10 years old, the consent of owners with 90 percent of the value is required. For older buildings, the agreement of 80 percent of the owners by value is necessary.

Rival financial centre Hong Kong is mulling changing its rules to allow for collective sales of buildings that are less than 40 years old. It is also considering lowering the 90 percent minimum approval to spur redevelopment.

"Why should crass materialism win the fight over those who value their homes, their sentimental attachments, the comfort and ease of familiarity of environment?" wrote apartment owner Ivy Soh in a letter to Singapore's Today newspaper on Aug. 4.

While Singapore's home ownership of around 95 percent is one of the highest worldwide, the willingness of many homeowners to sell reflects Singapore's shrinking family size. As couples have fewer children, many are trading large flats for smaller ones.

"If we keep going like this, all our beautiful low-rises will be gone and we will all be living in tall, ugly matchboxes," said art dealer Georgia Kan, who was forced earlier this year to sell her home of a decade after the overwhelming majority of her neighbours opted to sell the block. (additional reporting by Dominic Whiting in Hong Kong)

© Reuters 2006. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

mr funny
10-10-06, 16:23
Property
Published October 10, 2006

Prime residential sites up for en bloc sale

By UMA SHANKARI

ENG Tai Mansion, a freehold residential site near Somerset MRT station, is up for collective sale at $90.4 million.

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Eng Tai Mansion: Market watchers expect the freehold site near Somerset MRT station to fetch about $80 million

The 38,300 sq ft site - at St Thomas Walk in prime District 9 beside Orchard Road - could fetch about $80 million, market watchers say.

An estimated development charge of $10.4 million is payable.

The maximum building height is 36 storeys and the plot ratio is 2.8, allowing for a maximum floor area of 107,300 sq ft.

At $90.4 million, the cost translates to $840 per sq ft per plot ratio (ppr).

The site can be redeveloped into a high-rise condominium of up to 80 apartments averaging 1,200 sq ft each, says marketing agent Jones Lang LaSalle (JLL).

Eng Tai Mansion now comprises two blocks with a total of 50 apartments, owned by more than now 40 owners. Close to 90 per cent of unit-owners have already agreed to sell, says JLL.

Owners get an average of $1.6 million per unit if the $80 million asking price is achieved. This translates to an en bloc premium of about 100 per cent, says JLL's regional director and head of investments Lui Seng Fatt.

'The take-up of prime residential development sites in the Orchard area has been very strong,' says Mr Lui, who expects the Eng Tai Mansion project to garner strong interest from local and overseas high net worth individuals.

The tender closes at 2pm on Nov 9.

Elsewhere, a freehold property in Upper East Coast Road, East Coast Ville, is also up for collective sale. The site is 96,600 sq ft and the plot ratio is 1.4 plot ratio, allowing a gross floor area of 135,300 sq ft. The owners of the 60 existing units are asking for $60 million - including an estimated development charge of $4.6 million - which works out to $440 psf ppr.

Dennis Wee Realty, which is handling the sale, said a buyer can redevelop the property into an estimated 120 residential units of various sizes.