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Published January 12, 2010

Fund said to be selling Grange Infinite units

By EMILYN YAP


A PRIVATE fund managed by ARA Asset Management is said to have put 53 units at Grange Infinite back on the market for sale, as activity in the high-end residential sector picks up.

BT understands that some of these freehold apartments at Grange Road could be going for $2,900 per sq ft or more, depending on their size and the floor they are on.

Based on a caveat lodged with the Urban Redevelopment Authority, a unit at the development went for as much as $3,400 psf in September last year.

The private fund had bought the 53 apartments in bulk for $388 million in early 2008, making the 68-unit Grange Infinite a sold-out project.

The 36-storey condominium is jointly developed by Chip Eng Seng and Citadel, and is expected to be ready by 2011.

Units in the bulk deal included three-bedders, four-bedders and penthouses. A BT report noted that the average price for the purchase worked out to $2,600-$2,700 psf.

This means that the units cost less than separate ones sold earlier, most of which changed hands at more than $3,000 psf.

The rumoured sale by the fund comes on the back of other high-end property launches in the last few months.

For instance, CapitaLand said last week that it sold 60 units at Urban Suites for $2,400-$2,700 psf. YTL Corporation also sold six villas at its Kasara project at Sentosa Cove for $14 million to $22 million each, or around $1,600 psf on average.

In a report last Wednesday, Macquarie Equities Research noted that developers they spoke to 'unanimously agreed' that mid-to high-end residential prices could rise further. The developers were hopeful that the integrated resorts would draw more interest from international investors.

But there still seems to be some doubt on whether and how much foreign demand would return.

'Amongst property consultants, the expectation of price growth ranges from 5-10 per cent to as high as 20 per cent, reflecting the uncertainty of the return of such investors since this hinges on wealth creation globally,' the research house said.