Two 99-Year Sites Up For Collective Sale

Source : The Business Times, November 1, 2007

Chancery Court, Thomson View tenders likely to close in early Dec

Chancery Court and Thomson View Condo, both 99-year leasehold properties, are being put up for collective sale, with respective guide prices of $468 million and $550 million.

For sale: Chancery Court, a privatised HUDC estate along Dunearn Road, has been launched for tender with a guide price of $468 million

Chancery Court, a privatised HUDC estate on a choice location along Dunearn Road, has been launched for tender.

The guide price of $468 million indicated by its marketing agent CB Richard Ellis works out to about $1,614 per square foot of potential gross floor area inclusive of two payments to the state.

These are a differential premium of about $65.5 million (for intensifying the site's use) and a lease upgrading premium of $52 million for topping up the site's lease to 99 years from a remaining term of about 73 years.

The breakeven cost for a new condo on the site will work out to around $2,075 psf based on the guide price, according to CBRE.

Chancery Court has a 259,137 square feet land area and can be redeveloped into a new condo with about 242 units with an average size of 1,500 sq ft. Chancery Court, which is near Anglo-Chinese School (Barker Road), is designated a 1.4 plot ratio (ratio of maximum potential gross floor area to land area) and a five-storey height limit.

Owners controlling more than 87 per cent of share values in the development have signed the collective sale agreement, before the latest en bloc legislation kicked in on Oct 4. Chancery Court's tender closes on Dec 5.

Thomson View Condo, along Upper Thomson Road, is being marketed by First Tree Properties and Huttons Real Estate. The indicative price for the 540,314 sq ft site is $550 million, which works out to $652 psf per plot ratio inclusive of an estimated differential premium of $110 million and a lease-upgrading premium of about $80 million. First Tree managing director Alvin Er said that it may be possible to amalgamate the site with a strip of state land of about 39,000 sq ft along Bright Hill Drive subject to approval for its sale by the authorities.

'If this is allowed, then the total unit land price to the buyer of Thomson View will be lowered to $620 psf ppr,' he said.

The Thomson View site is designated for residential use with a 2.1 plot ratio and 24-storey maximum height. The plot can be redeveloped into a new condo with about 950 units averaging 1,200 sq ft. 'Because the property is on elevated ground, the new project will boast 270-degree views of MacRitchie Reservoir, surrounding nature reserve as well as Singapore Island Country Club,' Mr Er said.

Thomson View's collective sale agreement has received approval from owners controlling at least 82 per cent of share values before the new en bloc laws kicked in. The tender is expected to be launched next week and is likely to close in early December, Mr Er added.