Margate Mansion En Bloc Sale Seeks $63.8m

Source: The Business Times, 12 July 2007

Margate Mansion, just off Meyer Road, is now available for collective sale at an indicative price of $63.8 million, or $929 per square foot per plot ratio (psf ppr).

The 34,804 sq ft site is the first to go on the market in this area since The Seafront on Meyer set new benchmark prices when it was launched earlier this year. Average prices for The Seafront were reported to be between $1,400 and $1,800 psf.

CB Richard Ellis director (investment properties) Charles Hoon, whose company is marketing the property, said: Meyer Road is the best stretch in District15 in terms of locality and sea views. The area allows high-rise developments unlike others in the East Coast which allow only up to five storeys.?lt;/FONT>

Mr Hoon also estimated that at the asking price, the potential developer can expect to break even at about $1,330 psf. Recent new launches in the vicinity are averaging above $1,600 psf,?he added.

The asking price may be higher than any recent transaction in the area but the Meyer Road area is fast becoming the alternative address for those choosing to live outside the traditional prime districts.

As such, market sources revealed that several other older developments, including Hawaii Tower, will soon be put on the market at similar prices.

The last collective sale transaction in the Meyer Road area was Eastern Mansion in 2005. As an indication of how much prices have risen, Eastern Mansion was sold for $152.9million, or around $500 psf ppr.

Margate Mansion has a gross plot ratio of 2.1 and an allowable building height of 24 storeys.

Mr Hoon estimated that a 60-unit development of about 1,200 sq ft can be built on the site.

Meyer Road still commands a premium in the East Coast. Further down the road, Credo Real Estate is marketing Rich East Garden, a 40-unit development at Upper East Coast Road. The indicative price for the site is $92 million-$95million, which translates to a land rate of about $630-$650 psf ppr, including an estimated development charge of $330,000.

The East Coast is already undergoing significant transformation.

Recently launched projects which are all under construction include: Wheelock Properties?546-unit The Sea View; MCL Land's 400-unit The Esta; the 562-unit One Amber by United Industrial Corp and United Overseas Land; and Ho Bee's 42-unit Vertis. At least five more sites have been offered for collective sale this year.