Grangeford Apartments sets record asking price

Published April 24, 2007

Grangeford Apartments sets record asking price

It is the first en bloc sale set above $2,000 psf ppr

By KALPANA RASHIWALA


FOUR collective-sale sites were launched yesterday - including Grangeford Apartments, with a whopping $660 million 'guide price' that is more than double the $280 million bandied about in October last year.


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Grangeford Apartments: Its $660m guide price translates to proceeds of $3m a unit for 2-bedroom unit owners and $3.8m each for 3-bedroom units


The latest price tag works out to $2,016 psf of potential gross floor area including an estimated $97.8 million the developer will have to pay the state to restore the site's remaining 66-year lease to 99 years.

The unit land price is more than double the $800 psf per plot ratio (psf ppr) fetched earlier this year for next-door Horizon Towers, which is also leasehold.

Grangeford Apartments is the first collective sale with an asking price above $2,000 psf per plot ratio (psf ppr).

The record is still held by the freehold Parisian at Angullia Park, bought by Overseas Union Enterprise in December last year for $1,735 psf ppr.

The other three en bloc sale sites launched yesterday are Fairways at Telok Blangah, Nob Hill Condo and two adjoining lots in the Ewe Boon/Balmoral vicinity, and Rivershire at Leonie Hill.

Knight Frank, which is marketing Rivershire through expressions of interest, expects the 56,396 sq ft freehold plot to fetch $237 million or $1,500 psf ppr. No development charge (DC) is payable. The site is zoned for residential use with a 2.8 plot ratio - the ratio of maximum potential gross floor area to land area - and a 36-storey maximum height.

Credo Real Estate, which is handling the tender for Nob Hill Condominium at 21 Ewe Boon Road and two adjoining bungalows at 15 and 17, says it expects the combined site of 63,572 sq ft to fetch about $95 million or $1,100 psf ppr including an estimated $17 million DC. The freehold site is zoned for residential use with a 1.6 plot ratio and 12-storey height limit.

In the Telok Blangah area, Colliers is relaunching Fairways condominium. In February, it invited expressions of interest with an indicative price of $232 million or $750 psf ppr, including DC and the cost of amalgamating an 8,288 sq ft state plot next door.

This time around, Colliers has indicated a higher price of $238 million, which works out to $773 psf ppr. With the positive sentiment generated by the recent launch of Reflections at Keppel Bay, Colliers hopes it can achieve a much higher price for Fairways owners.

So far, 90 per cent of 350 units released at the 99-year leasehold Reflections at Keppel Bay have been sold, achieving an average price of $1,900 psf.

Colliers has convinced the requisite 80 per cent of Fairways owners to sign the collective-sale agreement and is launching the site through a tender, unlike the February exercise, which was an expression of interest.

CB Richard Ellis, which is handling the expression of interest for Grangeford Apartments, says the $660 million guide price translates to proceeds of $3 million a unit for two-bedroom unit owners and $3.8 million each for those who own three-bedroom units.

While such prices should help persuade owners who are worried about not being able to buy replacement homes nearby, it remains to be seen whether the market will pay them.

Market watchers reckon the minimum price for Grangeford could be 10-15 per cent lower, or about $560 million to $595 million.

Based on the upper end of this range, the unit land cost works would be $1,845 psf ppr. Market watchers reckon the break-even cost could be $2,400 to $2,500 psf.

Earlier this year, a consortium led by Hotel Properties paid $500 million or about $800 psf ppr for the 204,742 sq ft Horizon Towers site next door.

Under Master Plan 2003, the Grangeford Apartments plot is zoned for residential use with a 2.8 plot ratio and a 36-storey height limit.

However, the assumption being made is that the authorities will allow a new development on the site to retain the current existing gross floor area of 375,466 sq ft, which reflects a 2.87 plot ratio.

CBRE says that even if the developer builds an additional 10 per cent gross floor area allowed for balconies, no DC is payable as the development baseline is high - at 547,926 sq ft or an equivalent plot ratio of 4.18.

April 24, 2007

ON THE MARKET

Four sites put up for collective sale


THE collective sale market shows no signing of slowing with four more sites put up for sale yesterday.

The most expensive is the 140-unit Grangeford Apartment, which sits on 130,982 sq ft of prime land on Grange Road.

Marketing agent CB Richard Ellis said the asking price is a whopping $660 million or about $2,016 per sq ft per plot ratio (psf ppr).

If the site is sold at that price, owners could reap up to $3.8 million for larger three-bedders - more than double the last sale price of $1.8 million in February.

The site is being marketed via an expression of interest exercise on May 25. So far, 72.5 per cent of owners have agreed - short of the 80 per cent required.

The 74-unit Rivershire on Leonie Hill Road is also up for sale through a May 29 expression of interest exercise. The 56,396 sq ft site is expected to fetch about $237 million - a land value of $1,500 psf ppr, said marketing agent Knight Frank.

Credo Real Estate is putting Nob Hill Condominium and two adjoining plots up for sale in a May 21 tender. The asking price for the Ewe Boon/Balmoral area sites is $95 million, or $1,100 psf ppr.

Colliers International has also put Fairways condominium in Telok Blangah up for sale in a May 16 tender. The successful buyer can combine the site with a 8,288 sq ft piece of state land, it said. The 146,532 sq ft site has an indicative land value of $238 million or $773 psf ppr.

JOYCE TEO

Hi The tender closed on 25 May 2007 but no news yet on the outcome. The asking price was $2016ppr. Any news/ideas on what happened?

June 12, 2007

'Jackie Chan' condo close to being priciest collective sale

HK star among 11 owners who have yet to agree to Grangeford sale

By Joyce Teo, Property Correspondent


HONG KONG movie superstar Jackie Chan is among a group of home owners who could stand in the way of what is shaping up as Singapore's priciest collective sale in per sq ft (psf) terms.

Their development Grangeford Apartments, along with Elizabeth Heights, The Ardmore and Trendale Tower, is poised to set new benchmarks for the red-hot collective sale market, if it achieves its asking price.

Grangeford, located in prime Grange Road, was the first among them to ask for at least $2,000 psf per plot ratio (psf ppr). The latest to hit the market, Trendale Tower in Cairnhill Road, is asking for a whopping $2,200 psf ppr.

While more and more condominiums are asking for higher and higher prices, the collective sale record is still held by The Parisian in Angullia Park. It was sold in January for $1,735 psf ppr.

Grangeford, a 99-year leasehold property, is still 5 per cent short of the minimum 80 per cent approval needed from the owners for the sale to proceed.

That 5 per cent is represented by just 11 owners and so far the movie star has yet to agree to the sale, which is by way of an expression of interest. Chan's agent will agree to sell on Chan's behalf if the 'price is right'.

Marketing agent CB Richard Ellis (CBRE) launched the exercise with a guidance price of $660 million in late April.

That amounts to $2,016 psf ppr, including an estimated premium of $97.8 million to upgrade to a fresh 99-year lease. The condominium was completed in 1981, with 192 two to three-bedroom units and one shop unit.

Chan owns a 1,755 sq ft three-bedroom unit and would stand to get $3.8 million for his apartment, if Grangeford achieves its asking price. Owners of the smaller 1,173 sq ft units will stand to get $3 million each, and the shop owner, $3.1 million.

Chan bought his apartment for only $1.3 million back in 1996, according to his agent Simon Kwan who owns two adjoining units at Grangeford. He also manages the actor's properties in Singapore, which includes shophouses in Tanjong Pagar.

In fact, he recently renovated Chan's Grangeford unit for about $65,000 last year. The unit is being rented out at $6,000 a month.

Mr Kwan said Chan is aware of the rising market in Singapore and has left it to him to decide the sale on his behalf. 'As his managing agent, I did request the sale agreement for him about three months ago but the market picked up again,' he said.

'I like the area. It's wonderful,' Mr Kwan said, adding he would not sell his own units for 'personal reasons'.

'But let them come back to us. If the price is right, I will still advise him (Chan) to sell.'

Grangeford's reserve price has been revised upwards more than once.

'Because of the delay, the price went up,' said Mr Kwan. Last September, the estate was going for just $280 million - far less than half the asking price now.

Chan sold a unit at The Claymore but would have been in line for a jackpot there had he held on - as some owners at the the condominium are attempting to mount a collective sale

Mr Jeremy Lake, executive director of investment properties at CBRE, said the firm is negotiating with four developers and 'may seal the Grangeford deal in two to three weeks' time'.

In the collective sale boom so far this year, about 44 collective sale deals worth $7.385 billion have been done, according to data from Credo Real Estate.

This is close to the value of the 78 deals done last year - $7.85 billion, it said.

Credo says it is still discussing the deal for the freehold Elizabeth Heights in Cairnhill Road, which is asking for $2,100 psf ppr.

The expression of interest exercise for The Ardmore and Trendale Tower has yet to close.

[email protected]


Work in progress

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PHOTO: BUSINESS TIMES

* Grangeford Apartments: Completed in 1981. It has 192 two- to three-bedroom units and one shop unit.

* Expression of interest exercise: Launched by marketing agent CB Richard Ellis in late April with a guide price of $660 million.

That is equivalent to $2,016 psf ppr, including an estimated premium of $97.8 million to upgrade the lease to a fresh 99-year lease.

* Approval status: Grangeford is still 5 per cent short of the minimum 80 per cent approval needed from the owners for the sale to proceed.