Published June 1, 2007

Tan Chin Tuan Mansion adds a luxury condo

12 of the 16 units in the 20-storey condo will be leased out

By ARTHUR SIM


(SINGAPORE) Tan Chin Tuan Mansion has been restored and redeveloped to include a luxury 20-storey condominium. But most of the units will only be for lease.


"We will be very selective in our choice of tenants, given the small number of units for lease and the fact that they will be living in close proximity to my family members.'
- Chew Gek Kim, grandaughter of the late philanthropist

Four of the 16 units will be kept by the family of the late Tan Chin Tuan. Based on the current benchmark price of about $2,500 psf for Suites @ Cairnhill, the remaining 12 have a market value of about $120 million.

The property has been redeveloped by a business entity called Cairnhill Rock and Chew Gek Khim, granddaughter of Tan Chin Tuan. 'It has always been the intention of the private company to keep the entire building for sentimental and historical reasons,' she said.

The units are large at almost 4,000 sq ft each. Rents have not been fixed. Ms Chew said they will be benchmarked to market rates. 'But we will be very selective in our choice of tenants, given the small number of units for lease and the fact that they will be living in close proximity to my family members.'

The development is being marketed by Knight Frank and temporary occupation permit (TOP) is expected by mid-2007.

Leasing is not without its upside.

For Q1 2007, the official rental index (non-landed) increased 8 per cent quarter on quarter and 23 per cent year on year.

A good indicator of possible rents is the recently launched Orchard Scotts Residences by Far East Organization (FEO) nearby. A spokesman for FEO said monthly rents range from about $8,300 for a 538 sq ft unit to $30,000 for a 3,810 sq ft unit, including a range of services.

Orchard Scotts comprises three blocks. And one of these - or 206 of the 387 units in the whole development - is reserved as serviced residences.

Keppel Land is another developer that has held on to units to rent instead of sell. A Keppel Land spokesman said the 168 corporate residence units within the 969-unit Caribbean at Keppel Bay have been close to full occupancy since operations started in 2005.

Explaining its rationale, Keppel Land said: 'The residences were set aside to cater to the growing number of international travellers here, especially foreigners who are drawn to the world-class waterfront lifestyle we are offering.'

Keppel Land may consider renting units at its new Reflections at Keppel Bay too. Keppel Land said: 'We have successfully launched our first phase of Reflections at Keppel Bay and are planning for our second phase. As the completion of Reflections at Keppel Bay will take a few years, our options are open at this point in time.'