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Thread: Derby Court up for collective sale with $68.3m price tag

  1. #1
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    Default Derby Court up for collective sale with $68.3m price tag

    http://www.straitstimes.com/archive/...e-tag-20141125

    Derby Court up for collective sale with $68.3m price tag

    Published on Nov 25, 2014 1:05 AM


    THE freehold Derby Court development in Novena goes up for collective sale today with a price tag of $68.3 million.

    Market watchers tip that the site will generate a lot of interest from developers, given its location and relatively low headline price.

    The 35-year-old condominium in Derbyshire Road is near the Novena MRT station and United Square, Velocity@Novena Square and Square 2 malls. St Joseph's Institution (Junior) and Anglo Chinese School (Junior) are nearby as well.

    Developers are wary of the faltering property market these days but the asking price of $68.3 million could lure bidders.

    It works out to $1,286 per sq ft (psf) per plot ratio (ppr), based on a gross floor area of 53,094 sq ft, its broker Savills said in a statement.

    The new development on the 18,506 sq ft plot could have an extra gross floor area of up to 10 per cent for balconies. Based on this, the price will work out to $1,169 psf ppr.

    "Sites with an absolute price quantum of less than $70 million for a highrise 36-storey development are few and far between," said Ms Suzie Mok, senior director of investment sales at Savills Singapore.

    "This is a sweet spot to boutique developers in the present market," she added.

    "We expect the site to draw interest due to its locational attributes, established amenities and compact size."

    In July, the 325-unit Spring Grove condo in Grange Road hit the collective sale market with an eye-popping price tag of $1.39 billion, but had no takers.

    Market watchers said then that the price did not make sense in a tepid market, as developers would be undertaking a huge risk with such a large project.

    Owners of Derby Court's 18 four-bedders, each spanning 1,991 sq ft, can expect to receive about $3.1 million in proceeds, while owners of the two maisonette penthouses, measuring 3,897 sq ft each, should reap about $6 million.

    At the former Ultra Mansion, a freehold site also in Derbyshire Road, owners received about $3.1 million each when the site of the 48-unit project was scooped up for $149.1 million in March last year. That price worked out to about $1,170 psf.

    The Derby Court land has a plot ratio of 2.8, but the condo has been built up to a plot ratio of 2.869 after approval from the Urban Redevelopment Authority.

    This means a developer will not have to pay development charges to intensify the site's use, said Ms Mok.

    A new development on the plot could accommodate up to 70 units of about 753 sq ft each, with a breakeven cost of around $1,700 psf.

    The Derby Court tender closes on Jan 20.

    CHERYL ONG

  2. #2
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    Default Derby Court up for en bloc sale by tender

    http://www.businesstimes.com.sg/real...sale-by-tender

    Derby Court up for en bloc sale by tender

    By Lee Meixian

    [email protected]@LeeMeixianBT

    25 Nov


    UNDAUNTED by the lacklustre en bloc residential sale market this year, a freehold condominium in the Novena area has launched a collective sale. Derby Court, a 35-year-old, 12-storey development comprising 20 apartments, has given an indicative price of S$68.28 million, or S$1,286 per square foot per plot ratio (psf ppr), based on an allowable gross floor area of 53,094 sq ft.

    The land rate would be lowered to about S$1,169 psf ppr, including the 10 per cent bonus gross floor area allowed for balconies.

    The 18,500 sq ft site at 5 Derbyshire Road, which is off Thomson Road and near United Square shopping mall, can potentially accommodate up to 70 apartments averaging 753 sq ft; the breakeven cost will exceed S$1,700 psf, said Savills Singapore, which is handling the sale.

    No development charge needs to be paid because of the high development baseline which reflects a plot ratio of 2.869. The site is zoned "residential" with a plot ratio of 2.8 under the 2014 Master Plan.

    The tender will close at 3pm on Jan 20, 2015.

    The site is near Novena MRT station, Orchard Road and the central business district; it is also within 1km of popular schools such as St Joseph's Institution (Junior) and Anglo Chinese School (Junior).

    Suzie Mok, senior director of investment sales at Savills Singapore, said: "Sites with absolute price quantum of less than S$70 million for a high-rise 36-storey development are few and far between. This is a sweet spot to boutique developers in the present market."

    She added that Derby Court's prime city-fringe location would give investors "good rental potential and long-term capital appreciation".

    The Novena neighbourhood is a medical hub, home to Mount Elizabeth Novena Hospital, Novena Medical Centre, Novena Specialist Centre and Tan Tock Seng Hospital. The upcoming Royal Square at Novena and the government's masterplan for the future Health City Novena will boost the area as a medical tourism hub, Savills said.

    Derby Court's en bloc attempt follows that of Fragrance Court, put up for tender at a reserve price of S$70 million (about S$1,235 psf ppr) last month.

    Galven Tan, director of investment properties at CBRE, told The Business Times that the tender, which closed last Wednesday, received "no proper bids", but a few expressions of interest had come in.

    The en bloc attempt has since entered a 10-week private treaty period, and talks with parties are ongoing. The collective sale agreement expires next year.

    Last month, it was also reported that the owners of Cairnhill Mansions, an ageing District 9 property, are launching their fourth attempt at a collective sale. The owners previously failed to find a buyer at the reserve price of $361.5 million (S$2,308 psf). This year's attempt at a collective sale follows previous attempts in 2005 and 2007.

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