Meyer Place up for en-bloc sale, expected to fetch more than S$65m

http://www.channelnewsasia.com/stori...006749/1/.html

Meyer Place up for en-bloc sale, expected to fetch more than S$65m

By Ng Baoying, Channel NewsAsia | Posted: 23 September 2009 2008 hrs


SINGAPORE: Another collective en-bloc residential site is up for sale by tender. Meyer Place, off Meyer Road, is expected to fetch more than S$65 million, according to its marketing agent Cushman and Wakefield.

The site has a land area of 28,167 square feet.

Based on its maximum allowable plot ratio of 2.1, and with a potential development charge payment of S$3 million, the site will cost about S$1,100 per square foot per plot ratio.

This compares well against projects nearby, like Silversea, which have been sold at more than S$1,700 per square foot.

Cushman expects keen interest for the site, saying developers have seen a significant drop in inventories due to robust sales recently.

Cushman said this means developers may use the opportunity to replenish their land banks.

The tender exercise closes on October 28.

Donald Han, managing director, Cushman & Wakefield, said: “Meyer Road is basically the prime, creme de la creme of East Coast residential enclave. Some of the highest, best quality residential developments are located in Meyer Street, Meyer Road.

“If you look into what's there available for development, there's hardly anything that has not been developed. So the Meyer Place project represents one of the last few remaining sites which can potentially be redeveloped into a potentially 24 storey development.

“This is what we call a bite sized development site. It's about 28,000 sq ft. If you're looking into total site - cost plus construction, we're looking at, potentially looking at a price well below S$100 million. So it's basically a very comfy price for entry level and mid-sized developers. Some larger developers might even want to look into participating in these kind of projects.

“On our end, we have got foreign developers who're already looking keenly on this site to participate when it opens for tender." - CNA/vm

http://www.straitstimes.com/Money/St...ry_433636.html

Sep 24, 2009 Thursday

The Meyer Place up for collective sale


THE Meyer Place condominium off Meyer Road has been put up for collective sale.

Property consultants Cushman & Wakefield, which is marketing the site, said it should fetch at least $65 million. That would give the 28 owners a sale price of $2.2 million to $3.3 million each, depending on the size of their unit.

Based on a maximum allowable plot ratio of 2.1, this price works out to $1,100 per sq ft (psf) per plot ratio.

These prices translate to a premium of about 50 per cent above the value of the units if the owners were to sell them individually on the open market now, said Ms Christina Sim, Cushman & Wakefield's director, investment, capital markets.

The fairly small 28,167 sq ft freehold site near Katong Park also has a two-storey conservation building that contains four flats that must remain in any development of the land.

Ms Sim described Meyer Road as the 'Nassim Road' of the East Coast and one that typically sets benchmark prices for the whole of District 15.

She added that the new project Silversea in Amber Road has crossed the $1,700 psf mark. Deals at this project were done at a median price of $1,386 psf last month.

New condominiums in the area include The Seafront on Meyer and The View @ Meyer.

Cushman & Wakefield said in a statement yesterday that it expects 'nothing less than a sterling reception' for the 'bite-sized' site although a market observer told The Straits Times that the owners seem to be asking for high prices.

The tender exercise closes on Oct 28.

Separately, Aspial Corporation has bought two properties in Lorong Melayu for $5.588 million, or about $408 psf per plot ratio, including development charges. The freehold properties in the Kembangan area have a total land area of about 1,000 sq m and a maximum gross floor area of 1,401 sq m.

It intends to develop a residential project on the site. The sale was done through Aspial's subsidiary, World Class Property (Telok Kurau).

JOYCE TEO

THE MEYER PLACE HITS THE MARKET
TODAYonline News Alert for September 24, 2009
THE collective sale property market fervour has now moved beyond the mass market segment and into the high-end luxury market. The latest en-bloc site to hit the market yesterday was The Meyer Place, located in up-market Meyer Road in the East Coast area, a favourite among expatriates here.
The Meyer Place currently holds 28 units in a seafront location on a freehold land area of 28,167 square feet (sq ft). Cushman & Wakefield, the marketing agent for the sale, believes that with the recovering economy, residents can expect to collect between $2.2 million and $2.4 million per unit.
Although the land site is much smaller than what another East Coast seafront condo offered for en-bloc sale earlier this month, Laguna Park, it is expected to be hotly contested among developers as it has a smaller price tag and the potential to attract high-end clientele, analysts said.
The en-bloc sale of The Meyer Place is also expected to open the floodgates for more collective sales in the area. A market observer said there is talk that residents in nearby Meyer Park, Amber Park and Kings Mansion may also be in the process of collecting signatures for an en-bloc deal.
Other residents living in condos in the vicinity are also reported to be keen on a collective sale for their apartments.
A resident at Peach Garden condominium, just 1 km away from The Meyer Place, told Today "Most of us would like to. It depends on the right timing and offer price."
According to Cushman & Wakefield, the District 15 site is expected to fetch $65 million.
Based on a 2.1 plot ratio and a potential development charge payment of $3 million, this works out to about $1,100 per sq ft (psf) per plot ratio.
"Sites costing less than $100 million provide a comfortable 'entry level' for developers, and there are already a few foreign developers currently evaluating the property," said Mr Donald Han, managing director of Cushman & Wakefield.
Credo's deputy managing director Tan Hong Boon said, "The site is in a popular district, and the price seems reasonable if the economy remains on the recovery track."
Analysts said the site is targeted at the high-end market, as the area is well known for its luxury developments. One analyst, who declined to be named, said the breakeven price for the new development is estimated to be close to $1,800 psf, and the new units could be priced around $2,000 psf.
According to data from the Urban Redevelopment Authority (URA), another development in that area, Parc Seabreeze, transacted at $1,362 to $1,500 psf in August. Meanwhile, units at Silversea at Marine Parade, were sold at $1,255 to $1,576 psf.
The Meyer Place also houses a conservation 3-storey mansion, which used to be the residence of the late rubber tycoon and philanthropist Tan Lark Sye.
It is now used as a condo clubhouse and the succesful developer would have to comply with conservation guidelines if any redevelopment work is planned for the mansion.
"Keeping the conservation house should not pose a problem, since the existing condo could co-exist with it," said Mr Tan.
The collective sale tender exercise for the property will close on Oct 28.