MCL Land top bidder for Holland site

Singapore
Published November 29, 2006

PROPERTY MATTERS
MCL Land top bidder for Holland site

By KALPANA RASHIWALA
MCL Land is set to increase its presence in the Holland/Farrer roads area after it emerged as the top bidder for the collective sale of Holland Hill Mansions, BT understands.

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Holland Hill Mansions: The $292 million price for the freehold parcel works out to about $750 psf ppr

Its $292 million price works out to about $750 per square foot of potential gross floor area. No development charge is payable. The price is 36 per cent higher than the $550 psf ppr unit land price MCL paid for the nearby Waterfall Gardens and a couple of smaller adjoining sites at Farrer Road in February.

Both Holland Hill Mansions and Waterfall Gardens are on freehold sites zoned for residential use with a 1.6 plot ratio (ratio of maximum potential gross floor area to land area). Both sites have a 12-storey maximum height. The deals were handled by DTZ Debenham Tie Leung.

The Holland Hill Mansions has a land area of 243,525 sq ft and can be redeveloped into a new condo with about 205 units averaging 2,000 sq ft. Based on MCL's purchase price, the breakeven cost works out to about $1,100 to $1,200 psf, say analysts. Market watchers suggest that MCL Land may take a partner to develop the project.

The existing Holland Hill Mansions have 116 apartments, a penthouse and a shop unit. Through the collective sale, owners stand to receive sums which could be 65 to 85 per cent more than they might have had by selling their homes individually, according to some estimates.

On the stock market yesterday, MCL ended one cent higher at $1.70.

Property
Published November 30, 2006

MCL, Ho Bee team up to buy Holland Hill Mansions

New condo on site set to sell for average of at least $1,300 psf


MCL LAND is partnering Ho Bee Investments for its $292 million acquisition of Holland Hill Mansions.

This is not the first tie-up between the two developers. Their maiden joint-venture was in 2000, when they developed the 716-unit Rio Vista condo in Hougang.

'And it won't be the last,' MCL chief executive officer Koh Teck Chuan said yesterday.

On the freehold Holland Hill Mansions site, the two partners plan to develop about 180 to 200 biggish apartments with balconies. They plan to launch the District 10 condo within a year.

The breakeven cost is expected to be about $1,050 per square foot and the expected average selling price will be at least $1,300 psf, according to Ho Bee executive director Ong Chong Hua.

The project will comprise units of three bedrooms (these will be about 2,000 sq ft), four bedrooms (about 2,300 to 2,500 sq ft) and penthouses

The site is zoned for residential use with 1.6 plot ratio (ratio of potential maximum gross floor area to land area) and has a 12-storey height limit.

BT reported yesterday that the $292 million price for the 243,525 sq ft freehold site reflects a unit land price of about $750 psf per plot ratio.

No development charge is payable, even if MCL and Ho Bee use an additional 10 per cent gross floor area for balcony space.

The $750 psf ppr for Holland Hill Mansions is 36 per cent higher than the $550 psf ppr unit land price MCL paid for the nearby Waterfall Gardens and a couple of smaller adjoining sites at Farrer Road in February.

Both deals were brokered by DTZ Debenham Tie Leung.

The firm's director Tang Wei Leng says owners of the existing 116 apartments at Holland Hill Mansions will receive sums ranging from $1.77 million to $3.89 million per unit. The sole penthouse owner will walk away with $6.25 million and the owner of the only shop in the development will pocket $1.35 million.

Ms Tang estimates these sums are easily double the values of the respective units had they been sold individually.