$95m Tag For 16 Terrace Houses Up For Collective Sale

Source : The Business Times, February 27, 2008

FORT Terrace, a row of 16 terrace houses at Fort Road in the East Coast has been put up for collective sale with an indicative price of $95 million. The site, which is being marketed by Colliers International, has an area of 47,886 sq ft and a 2.1 plot ratio.

Colliers executive director (investment sales) Ho Eng Joo said the successful bidder has to take into consideration an estimated development charge of $23 million, as well as the cost to alienate some 10,964 sq ft state land, which would be about $6.4 million. With this, the site would cost $1,238 per sq ft based on potential gross floor area.

Mr Ho said collective sales of landed properties are rare. Unlike strata-titled apartments and condominiums, all the owners of the landed houses have to agree to any sale.

But Mr Ho added: 'With 100 per cent owners' consensus, the collective sale of Fort Terrace is not subject to the approval of the Strata Title Board, resulting in a possibly shorter time for sale completion.'

The site can be redeveloped to accommodate a high-rise condominium, with 67 units of 1,500 sq ft each. Based on the unit price of $1,238 psf per plot ratio, Mr Ho estimates the break-even price for future development at $1,718 psf.

He also pointed out that new developments nearby on Meyer Road are currently selling for between $2,100 and $2,200 psf.

The market price for the individual homes at Fort Terrace ranges between $2.1 million and $2.3 million. Mr Ho estimates that owners of the 16 terrace houses could each get $4.8 million per house if the houses are sold collectively.