Eyeing a view of Orchard Road

Eyeing a view of Orchard Road

The Leonie Hill area looks set for major changes. Two properties in the area are looking to go en bloc.

On Monday, CB Richard Ellis launched an Expression of Interest (EOI) to find a developer for Grangeford Apartments along Grange Road.

A day later, Knight Frank put up the nearby Rivershire for sale, also by EOI.

Under the Master Plan 2003, any project in the Leonie Hill area is subject to a 36-storey limit.

For Grangeford Apartments, the existing built-up gross floor area is an estimated 34,882 sq m, reflecting a plot ratio of 2.87. The guide price of $660 million works out to around $2,016 per sq ft per plot ratio, that is inclusive of an estimated Differential Premium of $97.8 million to top up the lease to 99 years. The current 99-year lease dates back to 1974.

There will be no development charge payable to add the extra 10 per cent of gross floor area allowed for the balconies as the development charge baseline is at 50,904 sq m, equivalent to a plot ratio of approximately 4.18.

The 26-year-old Grangeford Apartments consists of 96 two-bedroom apartments, 96 three-bedroom apartments and a shop unit.

Using the above-mentioned guide price, owners of the 1,173 sq ft two-bedroom units will receive $3 million, while those in the 1,755 sq ft three-bedroom units will receive $3.8 million. The shop unit will receive $3.1 million.

In February, a three-bedroom unit in the development fetched $1.8 million. This equates to a collective sale premium of 111 per cent.

“A full-scale condominium would sit perfectly on the site given its excellent layout and prime location,” said Mr Jeremy Lake, executive director of investment properties at CB Richard Ellis.

A new development comprising around 188 units averaging 2,000 sq ft can be built on the site. The estimated break-even costs for a new development is around $2,600 to $2,650 per sq ft.

As for Rivershire, the single block of 74 apartments sits on approximately 56,396 sq ft of freehold land along Leonie Hill Road.

Knight Frank expects the site to command around $237 million, and with no development charge, it works out to $1,500 per sq ft per plot ratio.

A new development with around 125 units averaging 1,200 sq ft could be built on the site.

Both Knight Frank and CB Richard Ellis believe that their respective sites would attract interest from developers given the strong showing in take-up rates for luxury condominium developments.

“As observed from the recent success of residential projects launched in the vicinity, the buying sentiment is still strong. An iconic residential development with unobstructed views towards Orchard Road will certainly appeal to foreign and local buyers,” said Mr Lake.

The EOI exercises for Grangeford Apartments and Rivershire end at 3pm on May 25 and May 29 respectively.

Source: Weekend Today, 28 April 2007