SPH condo nets more than $650m in turnover
The sale of all 273 units at Sky@eleven has netted an estimated revenue of more than $650 million for Singapore Press Holdings (SPH), the company said yesterday.
Sky@eleven, a freehold condominium off Thomson Road, was sold out within 30 hours of its Sunday evening staff preview.
The development offers only large four-bedroom units starting from 1,851 sq ft.
‘Based on the average transacted price of $975 per sq ft for the units, total revenue is estimated to exceed $650 million,’ SPH said in a statement yesterday.
Some SPH directors and their associates have been issued options for the purchase of units in Sky@elevenand announcements will be made when these options are exercised, the company said.
It said the construction costs of the project cannot be accurately stated until the tender process is finalised, probably by the end of next month.
The value of the site is entered in SPH’s balance sheet as $11 million but the land was valued at $280 million by Knight Frank on Nov 17.
SPH said the financial impact on the firm cannot be ascertained yet as several factors have to be taken into account, including construction costs and the project’s actual completion date.
But its directors expect the development of the land to yield higher profits than an outright sale of the plot, given the upbeat sentiment in the property market.
A Kim Eng Research report yesterday said SPH is expected to yield a development profit of $372 million, or 23 cents a share, based on the average selling price of Sky@eleven.
Yesterday, SPH shares closed unchanged at $4.70, on 5.39 million shares traded.
Source : Straits Times - 31 Jan 2007
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