Published January 9, 2007

Concorde Residences in second bid to sell en bloc

Owners of building sticking to $51m reserve price


OWNERS of the freehold Concorde Residences in Thomson Road near the junction with Balestier Road are hitting the en bloc trail again after an unsuccessful attempt last year.

Concorde Residences: No development charge is payable for the freehold building on Thomson Road

And they are sticking to their $51 million reserve price, which reflects a unit land cost of about $534 per square foot of potential gross floor area. No development charge (DC) is payable, according to Realtorhub Real Estate executive director Daniel Ng, whose firm is marketing Concorde Residences.

'During the first tender exercise, the DC factor was not determined and therefore it caused a bit of concern with potential buyers,' he said. 'The owners have now obtained the baseline return from Urban Redevelopment Authority and it is now confirmed that there is no DC payable.

'This time around, with the known fact that DC is not payable and the fact that the market has improved significantly, the reserve price of $51 million is not unreasonable.'

Based on the $51 million price tag, the breakeven cost for an apartment development on the site could be about $800-$850 psf, market watchers reckon.

Mr Ng confirmed that consent for Concorde Residences' collective sale has been secured from owners controlling at least 80 per cent of share values. The 34,092 sq ft freehold site is zoned for residential use with a 2.8 plot ratio - the ratio of maximum potential gross floor area to land area - and a 36-storey maximum height.

The tender for Concorde Residences closes on Feb 9.

As well, Realtorhub is offering potential bidders of Concorde Residences two adjoining collective sale buildings - Balestier Court and Bright Building, with respective land areas of 10,429 sq ft and 12,278 sq ft.

The requisite consent levels for a collective sale have been obtained from owners of the two properties, Mr Ng said.

Balestier Court's $14.8 million reserve price works out to about $507 psf per plot ratio. Bright Building has a reserve price of $15.5 million, which comes to $451 psf ppr.

The unit land prices do not include DC. Mr Ng says it has yet to be ascertained whether DC is payable for the two properties.

Amalgamating the three sites - Concorde Residences, Balestier Court and Bright Building - would allow a new development with a maximum potential gross floor area of almost 160,000 sq ft. This could yield a new condo of about 130 units averaging 1,200 sq ft. All three sites are freehold with 2.8 plot ratios.