Thomson Rd properties up for collective sale
3 developments have combined freehold land area of 137,500 sq ft
CAPITALISING on the momentum for collective sales, three separate residential developments off Thomson Road are joining forces to put the properties up for en bloc sale.
The properties are Lock Cho Apartment, Comfort Mansion and a walk-up apartment block at Jalan Datoh and Jalan Raja Udang.
In terms of permissible gross floor area for redevelopment, the properties together could be the largest collective sale launched so far this year.
The three properties together have a freehold land area of around 137,500 square feet.
A piece of state land of 40,500 sq ft could be incorporated into the project, boosting the total to about 178,000 sq ft.
In terms of potential GFA, it comes up to 500,000 sq ft, given the site’s plot ratio of 2.8 and a height control of 36 floors.
In their first collective sale attempt, the owners are hoping to get $160 million for the combined site, or around $350 per sq ft per plot ratio, factoring in the development charge and state land costs of $14 million.
If successfully sold at $160 million, the owners are expected to get between $300,000 and $500,000 each, a 60 to 80 per cent premium over individual sale.
‘The launch of the Lock Cho Apartment and its adjoining developments marks the first large-scale residential collective sale site in the Thomson Road vicinity in recent years,’ says Tan Hong Boon, executive director of Credo Real Estate, who is handling the sale.
He added: ‘The launch of this centrally located site is timely as the locality experiences an almost absence of such a coveted large site, which many developers are seeking to acquire.
‘We feel it would be more appealing to developers if we can offer them a critical mass in size with regular plot shape for them to enjoy greater efficiency and economies of scale in construction and marketing.’
Mr Tan believes that such a large site will attract listed companies that are at least mid-sized.
He reckons developers can break even on the site at between $580 and $600 per sq ft of potential saleable floor area, with 400 apartment units of about 1,200 sq ft each.
At present, Lock Cho Apartment is a 140-unit development, Comfort Mansion has 17, while the walk-up apartment has eight units.
The apartments are around 30 to 40 years old, Credo says.
The tender for the properties will close on March 27.
Source : Business Times - 23 Feb 2006
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