Wing Tai sells Draycott Eight block
Overseas buyer likely a fund, paid $1,600 psf: sources
WING Tai is understood to have found a buyer for a block at its completed 99-year leasehold condo Draycott Eight for about $1,600 psf, sources have told BT.
Based on this figure, industry watchers estimate the lump sum amount for the transaction should be over $200 million, assuming Wing Tai sold all the units in the block, which is understood to have 46 four-bedroom units. Some of the apartments are said to have been leased out by Wing Tai, which should provide the investor with immediate returns.
The buyer is understood to be an overseas party, most likely a fund, sources suggest.
Draycott Eight, completed last year, is on a site with a remaining lease of 90 years. The 136-unit project in the prime Draycott/Ardmore area has three 24 storey blocks. Two blocks have four-bedroom apartments while the third is made up of two-bedders.
So far, Wing Tai seems to have been selling units in two blocks - including one of the towers with the four-bedroom units. This gives it the option of selling the third tower en bloc or holding it for investment, according to market watchers. According to caveats captured by SISV Services’ REALink 21 database, 10 units in the development have been sold so far at prices ranging from $1,561 psf to $1,756 psf. Wing Tai began selling the project late last year. The four bedroom units in the project are 2,896 sq ft each.
Market watchers described the $1,600 psf that Wing Tai is said to have achieved for the entire block’s sale as a good price and noted that the divestment releases resources that Wing Tai can then use to reinvest in the property market. The group has been scouting for residential development sites.
Yesterday, the company said in an announcement to the Singapore Exchange that it it has agreed to buy Newton Meadows for $73 million, confirming BT’s report earlier this week. This works out to about $666 psf of potential gross floor area inclusive of development charges. Jones Lang LaSalle brokered the deal.
Other prime residential development sites the group has bought over the past year include Belle Vue at Oxley Walk, bought for $227.3 million or about $666 psf per plot ratio (psf ppr), and Phoenix Mansion in Cairnhill Road for $57.9 million or $716 psf ppr.
Source : Business Times - 6 May 2006
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