Airview Towers owners up en-bloc sale price by 50%
The owners of Airview Towers are now looking at $210 million for the collective sale of their homes - 50 per cent more than the figure indicated in June last year.
The 100-unit development which is situated at St Thomas Walk in the River Valley area had been put on the market through an expression-of-interest exercise eight months ago with an indicative price of between $135 million and $142 million, or $750-$800 per square foot per plot ratio (psf ppr).
Tang Wei Leng, director of investment advisory services at DTZ Debenham Tie Leung, which is handling the tender, said the reserve price for Airview Towers was met during the earlier expression-of-interest exercise, but as the required 80 per cent of owners had not agreed to the sale the offer was not legally binding.
This time, 80 per cent of the owners have agreed to a collective sale, and if the reserve price is met the owners are legally bound to sell, she said.
The 63,264-square-foot site has a plot ratio of 2.8 and can yield 118 new units of about 1,350 square feet each.
Working on an estimated launch price of $2,000 per sq ft, that translates to a land price of $1,100-$1,200 psf ppr or about $210 million.
The breakeven price for a new project is expected to be about $1,800 psf.
The owners could make an 80-90 per cent premium over recent market prices.
Pre-launching a collective sale by an expression-of-interest exercise could be an effective strategy by homeowners to get the highest price, but Ms Tang said: ‘Developers are more likely to make offers on sites that are sale-ready.’
This sentiment is shared by Colliers International director (investment sales) Ho Eng Joo. Colliers is marketing Fairways Condominium at Telok Blangah and is currently going through an expression-of-interest exercise as 80 per cent of owners have not agreed to a collective sale yet.
About 70 per cent of owners have given their consent to the sale, and Mr Ho reckons this is the minimum before even considering an expression-of-interest exercise. ‘If a development has only 50 per cent consent, developers will also feel that it is a bit far-fetched to do a collective sale.’
The 146,532-sq-ft Fairways site has a plot ratio of 2.1, and Mr Ho says the land value has an indicative price of $232 million, or $750 psf ppr, inclusive of development charge and the cost of the amalgamation of a 8,288-sq-ft plot of state land.
More than 80 per cent of owners at Spottiswoode Apartment, off Neil Road, have decided on a collective sale and the indicative price for the 38,878-sq-ft site is $73.2 million to $77.2 million. This works out to about $673-$710 psf ppr.
The site has a plot ratio of 2.8 and a height restriction of 36 storeys. Suzie Mok, deputy director (asset management) at United Premas, which is handling the sale, says 103 apartments of about 1,000 sq ft can be built.
Adis Villas at Mount Sophia is also up for collective sale, having received at least 80 per cent consent from owners.
The sale is being handled by Boswell Property Consultant/Katherine Woo & Associates and the indicative price for the 20,491-sq-ft site is between $600-$890 psf ppr.
The site has a plot ratio of 2.1 with a height restriction of 10 storeys. There is also an option to convert the ground floor into commercial space.
BT, 27 February 2007