Freehold Grange Heights site up for sale

Property
Published March 6, 2007

Grange Heights asking for developers' expression of interest

By UMA SHANKARI

GRANGE Heights, a prime freehold residential site near Orchard Road, is asking for expressions of interest from investors and developers.

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Grange Heights: JLL has so far received a mandate to sell from owners holding about 70% of share value for the site. A mandate of at least 80% is needed for the sale.

Marketing agent Jones Lang LaSalle (JLL) expects the site to fetch upwards of $1,700 per square foot per plot ratio (psf ppr), but other market watchers estimated that the site could fetch between $1,100 and $1,200 psf ppr instead.

The owners and JLL are benchmarking the District 9 site against the recent sale of The Parisian at Angullia Park, which earlier this year fetched a record $1,735 psf ppr, inclusive of a development charge (DC).

However, market watchers said that a closer match could be the nearby Grange Tower, which Chip Eng Seng bought for $1,207 psf ppr last September.

Also, Frasers Centrepoint's St Thomas Suites in St Thomas Walk was recently launched at $1,700-$2,100 psf. Developers looking to launch projects around the area and targeting the same price range will be willing to pay about $1,100 psf ppr for the site, said one market source.

JLL said that Grange Heights will fetch more than Grange Tower because the former is bigger, and also because property prices have appreciated in the six months since Grange Tower was sold.

Grange Heights, which is accessible from Grange Road, River Valley Grove and St Thomas Walk, has a land area of 136,700 sq ft, and a 2.8 plot ratio - giving the site a maximum gross floor area (GFA) of 382,700 sq ft. The maximum building height is 36 storeys. JLL said no DC is payable for the site.

JLL has so far received a mandate to sell from owners holding about 70 per cent of share value for the site. A mandate of at least 80 per cent is needed before the sale can go through.

The site has the potential to be redeveloped into an ultra-luxurious high-rise condominium with 80-90 apartment units with an average size of 3,800 sq ft, said JLL. Added the property consultancy: 'However, developers may choose other options for a conventional mix of residential units.'

Right now, the site consists of three blocks with 120 apartments. If the owners' asking price is met, each owner will walk away with a collective sale premium of at least 100 per cent, said JLL.

The expression of interest exercise will close on March 29.