Published November 8, 2006

Enbloc sale of The Parisian may set new benchmark
At $1,469 psf ppr, price is 7.3% higher than record notched last month


THE Parisian at Angullia Park could set a new benchmark in land price in Singapore if its owners get their asking price in a collective sale.

Huge gain: The owners of the 27-unit The Parisian stand to receive $4.7 million-$8.3 million based on the $191.5 million asking price - about 70 per cent more than what they would get if they sold their apartments individually

CB Richard Ellis (CBRE), which is marketing the freehold property through an expression of interest exercise, says the asking price is $191.5 million, or a unit land price of $1,469 per square foot (psf) of potential gross floor area inclusive of an estimated $10.4 million development charge (DC).

The unit land price is 7.3 per cent higher than the existing record for prime-district residential land set last month when Wing Tai paid $1,369 psf per plot ratio (ppr), including DC, for Ardmore Point, located at Ardmore Park.

The 49,114-sq-ft freehold site is next to Skyline Angullia, which property giant Far East Organization bought in April this year for $1,073 psf ppr. But prime land prices have continued to appreciate substantially since then.

The reserve price indicated in the proposed collective sales agreement for The Parisian is lower than the $191.5 million asking price indicated by CBRE.

However, as the agreement has so far been signed by owners controlling about 60 per cent of share values in the development - shy of the minimum 80 per cent required - CBRE is indicating a higher asking price for The Parisian to persuade the rest of the owners to join in the eventual collective sale.

CBRE executive director (investment properties) Jeremy Lake points out that despite the record unit land price being sought for The Parisian, the ensuing redevelopment project on the site can still be viable.

A new condo development can break even at about $1,900-$2,000 psf and should be able to command around $2,200 psf or more on average when launched. 'There're not many prime sites around,' he highlighted.

The Parisian was completed 20 years ago and comprises 27 units. Owners stand to receive sums ranging from $4.7 million to $8.3 million based on the $191.5 million asking price. These sums are about 70 per cent more than what the owners would have received had they sold their apartments individually.

The site is zoned for residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area) and a maximum height of 36 storeys. The plot can be redeveloped into a condominium with about 68 units averaging 2,000 sq ft.