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Freehold properties Hilton Towers, Katong Shopping Arcade go en bloc

THE en bloc sale bandwagon continues to gain momentum. Two more collective sale sites were launched yesterday - Hilton Towers at Leonie Hill with a $77 million price tag, and Katong Shopping Arcade with a $22 million indicative price. Both are freehold properties.

And over in the Dunearn Road area, SingTel has launched its residential development site at 1 Hillcrest Road. BT reported last week that the asking price is about $95 million. The 256,486 sq ft site comprises two land parcels - one with a remaining lease of about 85 years and the other with 75 years. The successful bidder will have to pay the state almost $40 million - comprising a premium to top up the lease to 99 years, and another to change the site’s use from utility to residential. The expected $95 million land price plus the near-$40 million payment to the state works out to a unit land price of about $375 psf of potential gross floor area. Provisional approval has been granted for two-storey, strata landed terrace houses with a 1.4 plot ratio - the ratio of potential gross floor area to land area.

Market watchers say the successful bidder could instead apply to the authorities to develop a five-storey condo with a 1.4 plot ratio. Based on the $375 psf land cost, the breakeven cost works out to about $650 psf for a condo and $1.45 million per strata terrace house.

Jones Lang LaSalle is handling the tender for the property, which closes on March 29. A SingTel spokesman said the sale is in line with its strategy to better utilise capital and free up cash that can be redeployed in its telecommunications business or new investments. Hilton Towers’ $77 million price tag works out to be $843 psf of potential gross floor area inclusive of a $3.9 million development charge (DC) and about $600,000 payable for a neighbouring 816 sq ft plot that now houses an electrical substation. Hilton Towers has a 33,700 sq ft site area.

The subject is zoned residential with a 2.8 plot ratio. Colliers International, which is marketing the site, says expressions of interest close on March 30.

Boutique developers more keen on the Guillemard and Tanjong Katong area may be interested in Katong Shopping Arcade. The $22 million indicative price works out to about $300 psf per plot ratio including a $1.5 million DC. Under Master Plan 2003, the property can be redeveloped into a residential project with commercial use on the first storey at a 2.8 plot ratio. DTZ Debenham Tie Leung is handling the tender for the property, which closes on March 30.

Source : Business Times - 2 Mar 2006