Oxley Garden makes another attempt to sell the entire property at the same S$200 million price

Sep 20, 2022

Oxley Garden is now again available for purchase following the conclusion of a collective sale via tender in June during which time no agreement was reached. JLL and Brilliance Capital, both real estate companies, have restarted the tender with the same minimum price of S$200 million, which is the same as the asking price of the last effort to sell the property en bloc.

The residential freehold site, which encompasses numbers 1 through 46 in Oxley Garden, was presented for sale for the first time in April. This was just a short time after the bigger, neighbouring property located at 5 Oxley Rise was put up for sale. The access road that divides the Oxley Garden property in half is owned by the people who live at number 5 Oxley Rise. Both bids were terminated in June of 2022 without any sales taking place.

JLL stated that the sale of both sites would improve their value proposition and be mutually beneficial to both sites. This is because the developer who bought both sites together would be able to reconfigure and explore a comprehensive redevelopment for improved site efficiency and access. The first tender for Oxley Garden was held in April.

According to a press statement issued by the marketing firm JLL on Monday, more than 80% of the owners of the properties located in Oxley Garden have given their approval for the collective sale at the minimum price of S$200 million (Sep 19).

The walk-up flats in Oxley Garden range in size from 1,647 square feet to 1,776 square feet and are spread among 6 buildings that are each 4 stories tall. Oxley Garden was constructed in the 1960s.

The property is divided into two land plots and has a residential zoning designation. Its total land size is approximately 58,207 square feet. JLL highlighted Oxley Garden's "as-built" gross floor area (GFA) of some 85,246 square feet, which is equivalent to a GPR of about 1.4645. This is despite the fact that it has a gross plot ratio (GPR) of 1.4 and an allowable height of up to 5 storeys. In addition, the maximum allowable height is 5 storeys.

This indicates that the property may support a total gross floor area (GFA) of up to 93,770 square feet, which includes a 10 percent bonus GFA, and the owner will not be required to pay a land improvement tax or what was formerly known as a development charge for the expansion of their business.

At a minimum asking price of S$200 million and with a base GPR of 1.4645, JLL forecasts that the property will have a unit land rate of about S$2,346 psf ppr. The unit land fee would be S$2,133 per square foot per plot ratio if it included a 10% bonus on the GFA.

Oxley Garden is the latest in a growing number of premium properties that have been placed up for collective sale. In many of these cases, the tendering period has just come to a conclusion without resulting in a contract, or lengthy discussions have begun with prospective purchasers.

On September 13, the contract for the freehold of Trendale Tower, which is located in the Cairnhill neighbourhood, was concluded without receiving any offers. The condominium, which is located in the Orchard Road belt, was listed for sale with a suggested selling price of S$178 million, which is equivalent to around S$2,386 per square foot per plot ratio (psf ppr). According to our knowledge, the sellers are presently engaged in discussions on private treaty negotiations with several parties.

One week prior to that, on September 6, the tender for Orchard Bel Air, which is also a freehold site, was officially concluded, and the owners began conversations with prospective purchasers. Orchard Bel Air was listed for sale at a price of S$587.5 million, which equates to around S$2,500-S$2,600 psf ppr.

After the tender for 5 Oxley Rise was concluded in June, its owners are rumoured to be engaging in discussions with several parties. The big freehold property located on Oxley Rise had been put up for sale with the expectation of receiving offers for more than S$300 million.

Oxley Garden is located in District 9 and is around 600 metres distant from the Somerset MRT Station. St. Margaret's Primary School and River Valley Primary School are all located within one kilometre of Oxley Garden. On November 1st, 2022, at 3:00 pm, the bid deadline for Oxley Garden will be.