Hiap Hoe buys District 9 site for $47m
PROPERTY developer Hiap Hoe Limited said yesterday that it has bought a residential site at Cavenagh Road - which was put up for en-bloc sale in July - for $46.8 million.
The freehold site of some 43,100 square feet, which right now houses the five-storey Le Chateau consisting of 35 apartments and maisonettes, is in the prime District 9.
Provisional planning permission has been obtained for a residential development comprising three seven-storey and one five-storey blocks, with a total of 89 units.
‘As the development is located in the city area, the directors believe that the development would have substantial development potential,’ said Hiap Hoe in a statement to the Singapore Exchange.
Hiap Hoe bought the site through its wholly owned subsidiary Yong Hock Trading (S) Pte Ltd.
The purchase price was arrived at on a willing buyer-willing seller basis, said Hiap Hoe.
In addition to the purchase price paid, the site comes with a development charge (previously estimated to be $290,000) and state land alienation cost of $5.8 million.
Hiap Hoe’s final cost is estimated to be about $462 per square feet per plot ratio, said Colliers International, which marketed the property.
Colliers said that the site had attracted ‘keen interest’ from a number of parties before it was sold to Hiap Hoe.
The site is next to a piece of state land of about 11,400 square feet, which Hiap Hoe could choose to buy for amalgamation.
Hiap Hoe said that the purchase will be fully funded through internal funds and/or bank borrowings. The transaction is also not expected to have any material effect on the net tangible assets per share or earnings per share of the company for the current financial year.
The purchase marks the second one made by Hiap Hoe in the city area recently. In February, the company said it bought a plot of vacant land at Oxford Road for $12.5 million - also for residential development.
Hiap Hoe’s shares closed unchanged at 4.5 cents yesterday.
The company recently reported that revenue from the sales of residential development properties for the half year ended June 30 increased by 12.6 per cent to $15.2 million, up from $13.5 million in the same six months last year.
Source : Business Times - 1 Sept 2006
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