Balestier factory en bloc after rezoning
http://www.businesstimes.com.sg/sub/...60215,00.html?
Published November 19, 2009
Balestier factory en bloc after rezoning
(SINGAPORE) The owners of a terrace factory building off Balestier Road have put up their property for an en bloc sale following the Urban Redevelopment Authority's (URA) decision in 2008 to consider rezoning the site for residential use upon redevelopment.
The freehold property is being marketed by Credo Real Estate with a price tag in the region of $27 million to $30 million.
About $18.7 million is payable as development charge (DC) for the rezoning of the site. After factoring the DC payable, the estimated price tag reflects a per square foot per plot ratio (psf ppr) price of $586 psf ppr to $625 psf ppr. Breakeven for the project is at about $950 psf to $1,000 psf.
The three-storey strata-titled development at 6 Jalan Ampas comprises four terrace factory units built in the 1980s. They belong to four unrelated owners. The building sits on a corner rectangular-shaped land measuring just over 2,586 square metres. Tan Hong Boon, Credo's deputy managing director, said that the URA issued a circular in July 2008 to say that it had completed a review on a cluster of 15 industrial buildings at Jalan Ampas/Lorong Ampas, and was prepared to consider rezoning the properties to residential use at a gross plot ratio of 2.8 upon redevelopment. Based on this rezoning, the site may be redeveloped into a high-rise residential development comprising some 100 apartments with an average size of 780 square feet.
The tender for the launch closes at 3pm on Dec 10. Credo said that the site is about 50m from Shaw Plaza, a shopping mall that houses a major supermarket, a multiplex cinema, banks and fast food eateries such as McDonald's.
A new development in the same vicinity, Prestige Heights, was recently launched at a median sale price of $1,322 psf.
Balestier factory sold en bloc
http://www.straitstimes.com/Money/St...ry_465234.html
Dec 11, 2009
Prices offered for Balestier plot too low
A TENDER for a Balestier industrial plot that can be converted into a residential project failed to attract a high enough bid when it closed yesterday.
Marketing agent Credo Real Estate received several bids and expressions of interest from developers, but the prices offered were all below the reserve.
The site's four owners wanted at least $27 million for the freehold 27,838 sq ft plot at 6 Jalan Ampas, which now houses four three-storey terrace factory units.
A successful bidder will also have to pay a development charge of about $18.7 million to re-zone and develop the site near Shaw Plaza.
The indicative price range after factoring in the development charge works out to $586 to $625 per sq ft (psf) per plot ratio. This puts a developer's break-even point at $950 to $1,000 psf, Credo said.
Colliers International's executive director (investment sales), Mr Ho Eng Joo, said the tender response showed that developers were still very keen to buy land, but only at a level they think is reasonable.
'Developers are cautiously optimistic,' he added.
A government tender for a landed site in Jurong West attracted a whopping 32 bidders earlier this week. This is because it is a landed plot - which is low in supply and high in demand - and the site is of a size that is affordable, said Mr Ho.
Government land tenders also come with lower reserve prices and typically have fewer conditions than a private land site.
At the height of the 2007 boom, the highest number of offers Credo received for a land tender was 10, said its deputy managing director Tan Hong Boon.
The property firm will negotiate with the interested parties to nail down a price.
Balestier factory sold en bloc
http://www.businesstimes.com.sg/sub/...71065,00.html?
Published February 4, 2010
Balestier factory sold en bloc
By EMILYN YAP
A PRIVATE developer is paying $46.2 million to buy a freehold industrial building in Balestier and possibly launch a residential project on the site.
This is the first collective sale of the year, says Credo Real Estate which handled the deal.
The three-storey terrace factory building at 6 Jalan Ampas sits on a site spanning 27,838 sq ft, with a gross plot ratio of 2.5. The Urban Redevelopment Authority had said in 2008 that it would consider re-zoning the site for residential use, with a gross plot ratio of 2.8 upon redevelopment.
The developer will be paying $27.5 million for the plot and another $18.7 million as the estimated development charge for re-zoning the site. Altogether, the price works out to around $593 per square foot (psf) per plot ratio.
Credo did not identify the developer, though it notes that it is an 'experienced player in the industrial property sector' making its first foray into residential development in Singapore.
There is potential for the buyer to develop a high-rise residential project with a gross floor area of around 77,948 sq ft, Credo says.
The site is near Shaw Plaza and Balestier Plaza, and is surrounded by other residential and industrial properties.
Nearby, units at the recently launched Prestige Heights have changed hands at $1,287-$1,417 psf since December last year, based on caveats lodged.
The industrial building was put up for sale in November last year, but offers which came in by the time the tender closed on Dec 10 did not meet the reserve price.
'It attracted over five offers and subsequently another five more expressions of interest from developers who found the offering attractive,' says Credo deputy managing director Tan Hong Boon. The winning developer is one of the latter five which showed interest.
The festive season in December could have affected initial response to the tender, he reckons.
