Far East Mansion up for sale at $24 9m
AMID growing collective sale fever, the 218 owners of Far East Mansion off River Valley Road are hoping to sell their property en bloc for $248.5 million - which would give them $1.13 million each.
This is about 80 per cent more than if they sold their units individually, based on the last sale transaction in August last year of $625,000.
On a per square foot (psf) basis, the total price works out to $654 per plot ratio (ppr), including an estimated development charge of $885,689.
CB Richard Ellis, which is marketing the 136,194 sq ft site by seeking expressions of interest with a closing date of May 31, said the price compares well with the $738 psf ppr price that Lippo paid for OCBC Bank’s Kim Seng Road site last month.
The site can accommodate about 300 units and the estimated breakeven price is about $995 psf.
More than 70 per cent of the owners have agreed to the collective sale - short of the requisite 80 per cent - including retiree Soh Kum Cheong, 74, who has lived in Far East Mansion since late 1964.
‘This place has good fengshui, but we have to sell it because it is so old,’ he said.
The electrical system is outdated and the wall paint on the ceiling is peeling, he said.
‘If we are going to upgrade it, it would cost us…where do we find the money? Now the market is so good, if you don’t sell now, when do you want to do it?’
Far East Mansion is among a long list of properties that are, or will soon be, up for sale, he added.
Many sellers are getting big premiums over what their units would have fetched if sold individually.
Yesterday, the 36-unit Astoria Apartments at Cairnhill Rise also hit the collective sale market.
DTZ Debenham Tie Leung is putting it up for sale at around $102 million, including a development charge of $7.24 million. Its tender closes on May 30.
Meanwhile, MCL Land said it has bought No. 1 Hillcrest Road for $102.5 million from SingTel.
It also has to pay an estimated sum of slightly more than $40 million to top up the lease to 99 years and to convert the use of the training centre to residential use.
The price works out to about $400 psf ppr, said property consultancy Jones Lang LaSalle, which marketed the site.
Source : Business Times - 3 May 2006
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