Orange Grove Condo up for enbloc sale
Owners asking for a total of $175 million or $1,143 psf ppr
AFTER a flurry of collective sales in the Cairnhill and Orchard Boulevard areas in recent months, en bloc fever has headed towards Orange Grove Road.
Orange Grove Condominium is the first property to be put up for collective sale in Orange Grove Road this year, says marketing agent Jones Lang LaSalle.
Market sources say the owners expect about $175 million, which works out to $1,143 per square foot of potential gross floor area inclusive of an estimated development charge of $6 million. The 98,953 sq ft freehold site at the corner of Orange Grove and Stevens roads is zoned for residential use with a 1.6 plot ratio - the ratio of potential gross floor area to land area - with a 12-storey height limit.
Analysts estimate a new condominium project on the District 10 site could break even at about $1,650 psf.
‘We expect keen competition for the site. There is a very limited supply of sites for sale in Orange Grove Road. Most of the stock is tightly held - there’s Shangri-La Hotel, RELC and several serviced apartments. Also, the location is close to Nassim Road, which is highly sought after,’ says JLL’s regional director and head of investments Lui Seng Fatt.
Other prime district residential sites now on the market include Habitat One with an asking price that works out to a $1,280 psf per plot ratio including DC, Nassim Park with an asking price of $1,218 psf ppr and a site at Lengkok Angsa in the Paterson Road vicinity at $1,184 psf ppr.
Assuming Orange Grove Condominium’s owners get the price they expect, they will pocket on average $5 million to $6 million per unit, with the biggest unit fetching about $10 million. These sums are almost 90 per cent more than the units would fetch if sold on an individual basis.
The existing development comprises two four-storey blocks housing a total 31 apartments and maisonettes with floor areas ranging from 2,917 sq ft to 7,276 sq ft.
The development is about 18 years old. A few Hong Kong investors collectively own four units in the development.
Currently, owners controlling more than 80 per cent of share values in the estate have agreed to a collective sale. The tender closes on July 19.
Source : Business Times - 20 Jun 2006
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