Pacific Mansions put on the market for $1.18b
At $2,400 psf ppr, asking price tops transacted price of The Ardmore
MORE billion-dollar property deals could be on the way if developers continue to see upside in the collective sales market.
With $1.5 billion already asked for Farrer Court in the Holland area, Pacific Mansions in River Valley is now on offer for $1.18 billion or about $2,400 per square foot per plot ratio (psf ppr).
The 45-year old residential development is on a site of 128,306 sq ft. Savills, which is brokering the collective sale, says approval has been granted by the Urban Redevelopment Authority for a redevelopment up to a permissible gross floor area (GFA) of 493,223 sq ft.
This exceeds the permissible plot ratio of 2.8 as indicated in the 2003 Master Plan. Therefore, no development charges are payable.
At $2,400 psf ppr, Pacific Mansions will cost more than The Ardmore which was transacted at $2,338 psf ppr on Sunday.
Savills Singapore director of investment sales Steven Ming says the price of Pacific Mansions reflects a potential 130-unit ’super luxury’ development with units of 3,800 sq ft each.
Based on a 130-unit luxury development with a breakeven cost of $3,200 psf, the eventual launch price could be around $3,600 psf, adds Mr Ming.
Earlier this month, Soilbuild sold eight mid and upper-floor apartments at Leonie Parc View for $3,000-$3,400 psf, and Mr Ming believes the nearby River Valley area will benefit from this. ‘River Valley is undervalued, given its proximity to Leonie Hill,’ he said.
Whether the Pacific Mansions site can support these prices will be known when the tender closes on July 26. Savills will also be marketing the site through its offices in Hong Kong, China, Japan, Europe and the UK.
The owners of Pacific Mansions could each make $2,200 psf of strata area - an estimated premium of 140 per cent to the average current transaction price (since January) of about $900 psf.
The tender for Farrer Court closes soon. It is being marketed by Credo Real Estate, whose managing director Karamjit Singh says a deal could be announced as early as next week.
Meanwhile, Credo has said it is marketing a landed residential redevelopment site in Sixth Avenue with an indicative price of $72 million to $74 million.
Called Dynasty Garden Court 1, the development comprises 18 units of walk-up apartments housed in two three-storey blocks. The land area is 69,017 sq ft.
Mr Singh says that according to a study by an architect Credo commissioned, the developer could possibly configure 20 pairs of three-storey strata semi-detached houses on the site at an estimated selling price of $3.5 million each.
Source : Business Times - 19 Jun 2007
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.