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Thread: $442.3m for unique Mount Sophia site

  1. #1
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    Default $442.3m for unique Mount Sophia site

    http://www.straitstimes.com/premium/...-site-20130911

    $442.3m for unique Mount Sophia site

    Hair's breadth separates top 2 bids for plot near Dhoby Ghaut MRT station

    Published on Sep 11, 2013

    By Cheryl Ong


    A RARE residential site in Mount Sophia, a short walk from Dhoby Ghaut MRT station, has attracted a strong bidding contest among nine groups of developers.

    The top bid for the 99-year leasehold site - able to yield about 500 homes in the heart of one of Singapore's premier districts - came in at $442.3 million.

    That bid, from a consortium comprising Hoi Hup Realty, Sunway Developments and S C Wong Holdings, translates to $1,157 per sq ft (psf) per plot ratio (ppr).

    And it fell within experts' forecasts of a winning bid of between $1,150 and $1,200 psf ppr.

    The future development will become the biggest residential development in Mount Sophia, noted ERA Realty key executive officer Eugene Lim.

    The tender for the historic site, once home to several leading Singapore educational institutions, closed yesterday.

    The Methodist Girls' School, Trinity Theological College and Nan Hwa Girls' School buildings have been set aside by the Urban Redevelopment Authority for conservation - and must be integrated into the project design.

    The No.2 bid was a hair's breadth - at just 0.1 per cent - behind the top bid at $442 million, or $1,156 psf ppr, and was submitted by a tie-up between Hong Kong-listed group Fantasia Holdings and investment holding firm Singhome Re.

    This is the smallest gap between the top two bids for a residential site on record, said SLP International research head Nicholas Mak.

    A joint bid submitted by Far East Civil Engineering, Tannery Holdings and Sekisui House came in third at $1,124 psf ppr, 2.9 per cent lower than the winning bid.

    Experts said that the results were a signal that developers are still bullish on land sites with special attributes, such as this site's central location - also within walking distance to Plaza Singapura.

    Colliers International director of research and advisory Chia Siew Chuin said that the site's appeal lay in its location in the upscale District9.

    "The land parcel is unique, as the Government rarely releases for sale residential sites located in the prime District 9 area," she said.

    Mr Mak also said that it is the last residential site in this district that the Government will put up for sale this year.

    Bids for the 23,771 sq m site were also lodged by UOL Group, Wing Tai Holdings, and EL Development, which offered the lowest bid at $284.8 million.

    The site was put up for sale on the confirmed list of the Government Land Sales programme in June.

    Analysts estimate the developer's breakeven price to be $1,650 to $1,750 psf.

    Units at the future development are also likely to sell at $1,900 psf at its launch.

    Nearby, at the 103-year leasehold 8@Mount Sophia, units changed hands at an average transacted price of $1,650 psf from January to last month.

    The future development will also be near the Singapore Management University and the School of the Arts.

    This means buyers can expect attractive rental yields, as the high student population could mean strong rental demand in the area, said Knight Frank research head Alice Tan.

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  2. #2
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    Default Mt Sophia plot draws strong bids from 9 bidders

    http://www.businesstimes.com.sg/prem...dders-20130911

    Published September 11, 2013

    Mt Sophia plot draws strong bids from 9 bidders

    Terrain and design restrictions point to higher construction costs for project

    By Felda Chay [email protected]


    [SINGAPORE] A consortium comprising Hoi Hup Realty, Sunway Developments and SC Wong Holdings has narrowly emerged as the top bidder of a plum, 99-year leasehold residential site at Mount Sophia. It drew as many as nine bidders, on the higher end of consultants' expectations.

    The trio's bid of $442.3 million - or $1,156.53 per square foot per plot ratio (psf ppr) - was just 0.06 per cent higher than that put in by a unit of China-based developer Fantasia Holdings Group and private equity firm F&H Fund Management. They offered $442 million, or $1,155.80 psf ppr.

    Consultants had earlier expected five to 15 bidders for the site, with the winning bid at $1,000 to $1,300 psf ppr.

    It is the first site in District 9 to be sold since 2007 under the Government Land Sales (GLS) programme.

    "It is no surprise that the tender attracted a healthy number of nine bids," said Desmond Sim, associate director of CBRE Research.

    The 255,864 sq ft plot has a maximum gross floor area (GFA) of 382,420 sq ft and can yield about 500 private homes. It is within walking distance from Dhoby Ghaut MRT Station and Plaza Singapura.

    "It is a landmark site with a good vantage point given that it is on elevated ground. Heritage is also preserved by means of the conservation of the three significant buildings on-site," said Mr Sim.

    One of the conservation buildings has been slated for a kindergarten or day-care use, so the developer has some "flexibility to incorporate a kindergarten and commercial uses of the other two conserved buildings to the development", he added.

    But the terrain and design restrictions also mean that construction costs are likely to be high, he noted.

    Mr Sim expects the break-even cost to be around $1,700 - $1,800 psf, and selling price of units to be above $2,000 psf.

    Chia Siew Chuin, director of research & advisory at Colliers International, estimated that the break-even cost could be between $1,650 and $1,750 psf. When launched, selling prices of units at the project could start from $1,900 psf, she said.

    "From January to August this year, the median price of units selling at the nearby 8@Mount Sophia and Suites at Orchard is $1,613 psf and $1,906 psf, respectively," noted Ms Chia.

    Both are leasehold developments, with the former completed in 2008 and the latter to be completed by 2015.

    Nicholas Mak, executive director of research & consultancy at SLP International Property Consultants, noted that this is the last residential site in the traditional prime district that the government has offered for sale this year.

    "This land tender result indicates that some developers are still very bullish on certain high-end residential market segments, especially if there is limited new supply in that location," he said.

    He expects the break-even price to be between $1,630 and $1,680 psf.

    Other bidders for the site include Far East Organization and Sekisui House, which put in a joint bid of $1,123.84 psf ppr, 2.9 per cent below the top bid.

    The lowest bid came from EL Development, which put in $744.73 psf ppr for the plot.

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