THE last condominium plot in Sentosa Cove has been awarded to Ho Bee Investment and Malaysia-listed IOI Properties for a whopping $1.097 billion.
TOP DOLLAR: The Pinnacle Collection can accommodate a 357-unit condo of up to 20 storeys, making it the tallest and largest in the enclave. -- PHOTO: SENTOSA COVEThey put in a land price of $1,822 per sq ft per plot ratio (psf ppr) - slightly above the previous benchmark of $1,799.78 psf.
The bid, at just 14 per cent above the reserve, came in below earlier market expectations as the site, with a gross floor area of 602,360 sq ft, is said to be iconic.
Called The Pinnacle Collection, it can accommodate a 357-unit condo of up to 20 storeys, which would make it the tallest and largest condo in the enclave.
In September - when the 99-year leasehold site was launched for sale - property analysts projected bids of about $2,000 psf. But market sentiment had weakened by the time the tender closed on December 12.
Price was not the only factor at play though as the award was also based on the design concept.
Said CBRE Research executive director Li Hiaw Ho: 'The breakeven cost is estimated at $2,500 psf, which suggests a future selling price of around $3,000 psf.' The latest launch in Sentosa Cove, The Marina Collection, was priced at $2,700 psf to $3,000 psf.
Ho Bee and IOI have set up a special-purpose company for the project, with Ho Bee holding 35 per cent and IOI the remainder. The project is IOI's third foray into Singapore's property market and Ho Bee's eighth in the cove.
'If the sub-prime problem blows over, as it should, they would have landed a good deal,' said Mr Ku Swee Yong from Savills Singapore.
With this sale, there are just three unsold bungalow plots left at Sentosa Cove.
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