Marine Parade's Laguna Park For Sale At S$1.2b Reserve Price

Source : Channel NewsAsia, 02 September 2009

The Laguna Park estate in the Marine Parade area is up for collective sale, with an asking price of S$1.2 billion, according to its marketing agent Credo Real Estate.

Laguna Park, Marine Parade Road.

The owners of the current property stand to get between S$2.1 and S$2.3 million each for their apartments. Penthouse owners could get between S$3.5 and S$4.1 million.

This could potentially be Singapore's second billion-dollar en-bloc deal, after Farrer Court in 2007.

Laguna Park, a former HUDC estate, is now home to 528 units spanning a land area of 670,000 square feet.

If the en-bloc sale goes through, this parcel could eventually accommodate about 1,500 units with an average size of 1,200 square feet.

Credo said that it has already received enquiries from major developers and funds. The competition for the 99-year leasehold land parcel is expected to be keen - with the reserve price at $1.2 billion dollars.

"If we do not receive bids above the reserve price, there is still potential for us to sell the site through negotiations, by a private treaty. In the new law we have 10 weeks for that, but I seriously think we don't need that," said Tan Hong Boon, deputy managing director, Credo Real Estate.

The price tag translates to a land rate of some S$844 per square foot per plot ratio.

The successful bidder will also have to pay about S$400 million to top up the lease and a development charge.

More than 80 per cent of Laguna Park's owners have given their consent for the collective sale, Credo said.

According to analysts, the draw for Laguna Park is the size of the plot and its proximity to the sea, which will provide the future development with a good view.

"If you look at the quality of land in Singapore, Laguna Park has got one of the longest stretches of sea, with coastal views. It's about 400 to 500m of seafront view and it's also unblocked on the other side. Very rarely you get a plot of land with such spectacular views," said Christina Sim, director, Investment, Cushman & Wakefield.

Observers said the developers are likely to use the opportunity to replenish their land stocks.

"Since March-April onwards, the absorption rate in the real estate market has been phenomenal. The take up is probably over 10,000 units already this year. It looks like developer stocks are really drying up. And because there's a huge draw down on stocks, the developers balance sheets are reflecting a really fantastic cash flow. They would be in the market to look at land banking again," she added.

Analysts said that the break-even land cost is around S$1,250 per square foot, and the future units are likely to fetch prices higher than that.

The units at The Silversea, another private development in the vicinity, recently transacted for as much as S$1,750 per square foot.

As per the analysts, even if the sale for Laguna Park goes through by the year end - launches shouldn't be expected any time soon. That's because developers will be waiting till after the integrated resorts open in 2010, before launching units for what many analysts call - a jewel in their crown. - CNA/sc

Joo Chiat Hotel Put Up For Sale

Source : The Straits Times, Sep 2, 2009

A SMALL low-rise hotel in Joo Chiat Road is up for sale at an asking price of $20 million to $22 million.

Its owner, a local investment firm formed by a group of individual investors, is looking to sell now as market conditions are ripe, said Ms Yong Choon Fah, executive director of Credo Real Estate, which is marketing the property.

Joo Chiat Hotel, previously known as Astro Hotel, was put up for sale in a tender in 2004. The asking price was up to $9 million, though market watchers reportedly expected bids of only about $7 million. There were no bids.

The three-storey property - a conserved building approved for hotel use in the conservation district of Joo Chiat - has 68 guest rooms and one pub.

Both are leased by operators at a total gross annual rental revenue slightly in excess of $1 million, she said.

At $20 million, the buyer would secure a rental yield of 5.25 per cent for at least another year.

The $20 million price works out to about $294,000 a room, slightly above the market rate of about $250,000 a room for similar-grade hotels.

The property has a lease of 99 years starting from June 1995 and the total gross floor area is about 22,925 sq ft. The rooms go for about $60 to $80 a day.

The sale tender comes about eight months after a ban on offering hourly hotel rates was put in place in Joo Chiat.

While the area boasts a rich cultural heritage, it has been tainted by vice activities.

Joo Chiat Hotel is one of the nine hotels in the area affected by the ban but Ms Yong said the owner's decision to sell has nothing to do with the ban.

She said the asking price takes into account the limited supply of hotels in the area.

Also, the property is near the growth area of Paya Lebar Central and has 'great potential for the realisation of an improved stream of revenue income and capital appreciation', she said.

The tender closes on Oct 6.

Joo Chiat Hotel For Sale By Tender

Source : Channel NewsAsia, 01 September 2009

A conserved building approved for use as a hotel at Joo Chiat Road has been put up for sale by tender.

The property is owned by a local investment company, which is seeking offers in the range of S$20 million to S$22 million.

Joo Chiat Hotel comprises a 3-storey front section and a 4-storey rear extension, with 68 guestrooms and one pub. These are leased by operators at a total gross rental revenue of slightly over S$1 million a year.

The 99-year leasehold (from June 1995) site is about 708.8 square metres (7,629 square feet), with a total gross floor area of 2,129.8 sq m (22,925 sf).

Joo Chiat was gazetted as a conservation district in mid-1993, and is characterised by architectural styles of the turn of the 20th century as well as many Peranakan shophouses.

Property consultant Credo Real Estate said in a statement that the hotel, which is near Paya Lebar Central, is likely to benefit from appreciation in capital value as the transformation of Paya Lebar Central materialises.

Paya Lebar Central, one of the four targeted growth areas in the Master Plan 2008, promises to be a bustling commercial centre with offices, retail outlets, hotels and public spaces, Credo added.

The tender for the hotel closes at 2.30pm on October 6. - CNA/al

Hotel Site At Joo Chiat For Sale At Around $20m

Source : The Business Times, September 2, 2009

A CONSERVED building in Joo Chiat Road, approved for hotel use, is up for sale at $20-$22 million.

It is owned by a local investment company, says Credo Real Estate, which has been appointed to sell it.

The hotel building has a three-storey front section and a four-storey rear extension. It has 68 guest rooms and a pub, both leased by operators for total gross rent of just over $1 million.

The leasehold site of 99 years from June 1995 covers 7,629 sq ft. The total gross floor area is about 22,925 sq ft. This means the asking price works out to $872-$960 per sq ft of gross floor area.

Joo Chiat was gazetted as a conservation district in July 1993. The hotel, which is near Paya Lebar Central, is likely to benefit from an appreciation in capital value as the transformation of Paya Lebar Central materialises, says Credo Real Estate. Paya Lebar Central is one of the four growth areas in the 2008 Master Plan.

'Prospects for the hotel industry remain strong, with visitor arrivals expected to increase because of the Formula One Grand Prix, the 2010 Youth Olympic Games and the integrated resorts,' said Yong Choon Fah, executive director of Credo Real Estate.

'Given the location of the property and the future development of the Joo Chiat/Paya Lebar vicinity, there is great potential for improved revenue and capital appreciation.'

The tender for the property closes on Oct 6.

Separately, the Housing and Development Board said yesterday it is withdrawing a commercial site in Tampines from the reserve list of the government land sales programme for H2 2009.

The government has decided to withdraw the site, at Tampines Concourse, because it will be affected by future infrastructure works, HDB said. The site was released under the reserve list for application in October 2007.

Merchant Sq, Katong Bungalows Up For Sale

Source : The Business Times, September 1, 2009

MERCHANT Square in the Clemenceau Avenue area and four freehold strata bungalows at Bournemouth Road in the Katong locale are among the latest offerings in the property investment sales market.

The guide price for Merchant Square is about $48 million - or 34 per cent lower than the $73 million sought for the property in February last year.

Its owner, carpet manufacturer Jackson Carpet, did not get its asking price then for the property, which comprises offices, some shop space and 76 car park lots.

BT understands that the latest price reflects a net property yield of close to 4 per cent, based on Merchant Square's current passing income.

The latest $48 million guide price is about $955 per square foot, based on Merchant Square's 50,262 sq ft net lettable area. This compares with about $1,450 psf, based on last year's $73 million price tag.

Merchant Square was completed in 1996 and is on a site with a remaining lease of about 83 years. It comprises a four-storey office tower, two blocks of shophouses, and a couple of basement levels for carpark lots. CB Richard Ellis is marketing Merchant Square through an expression of interest exercise that closes on Oct 6.

Separately, Credo Real Estate has launched a sale through tender of four strata bungalows at 61 and 63 Bournemouth Road with a price tag of $24 million to $26 million.

The bungalows have a total freehold site area of 24,443 sq ft, and are being sold by three parties - one of whom owns two units and the other two, one bungalow each.

The sale is not being pitched as a redevelopment site as the bungalows are relatively new and in good condition; they were completed around 2000.

The development, originally known as Sayang Villa, will be ideal for extended families, or groups of friends who would like to be neighbours, or simply investors looking to occupy one or two units and lease out the rest.

'Should the buyer choose to redevelop the site in the medium term, he or she could build five conventional detached or strata houses,' Credo said. The tender closes on Oct 8.

Laguna Park En-Bloc Sale

Source : The Straits Times, Sep 2, 2009

EAST COAST condominium Laguna Park was put on en-bloc sale for $1.2 billion on Wednesday.

The condo, which made headlines in the past year for its spate of vandalism cases due to disputes in its en bloc sale process, reached the 80 per cent consent level last December.

The Laguna Park condo, which made headlines in the past year for its spate of vandalism cases due to disputes in its en bloc sale process, reached the 80 per cent consent level last December. --ST PHOTO: ADELINE ONG

Its marketing agent Credo Real Estate said the tender was put on hold until now 'as major developers have only recently returned to the land market with confidence.'

If it succeeds in finding a buyer, Laguna Park wil be the second billion-dollar en bloc deal in Singapore, after the 618- unit Farrer Court which was sold to a CapitaLand-led consortium for $1.3388 billion.

Like Farrer Court, Laguna Park is an ex-HUDC estate in Marine Parade and was privatised in 2007.

At the current price tag, owners of the apartment units will receive sale proceeds ranging from S$2.1 million to S$2.3 million, while the penthouses will gain between S$3.5 million and S$4.1 million.

It is also one of the few sites that come under the amended Land Titles (Strata) Act meant to tighten the en bloc sales process, which came into effect in October 2007.

Laguna Park has a land area of about 677,493 sq ft and a gross plot ratio of 2.8 under the current 2008 Master Plan, with a building height of up to 36 storeys, subject to relevant approval.

Credo's deputy managing director Tan Hong Boon estimates that the buyer would be able to build close to 1.9 million sq ft of gross floor area or some 1,500 apartments with an average size of about 1,200 sq ft.

At $1.2 billion, the land price for the condo works out to about $844 per sq ft per plot ratio.

This includes an estimated cost of about $400 million payable to the Government for maximising the plot ratio of 2.3 and the topping up of the current 67 year lease term to 99, said Mr Tan.

'At $844 per sq ft per plot ratio, the successful purchaser may work towards breaking even at around $1,200 to $1,250 psf, with a view of pricing the new units at $1,400 to $1,600 psf,' he added.

Another Reserve List Site Triggered For Release

Source : The Business Times, August 25, 2009

Developer has undertaken to bid at least $200 psf ppr for Serangoon condo site

For the fourth time in about a month, a 99-year leasehold site on the government's reserve list has been triggered for release, as developers seek to replenish their landbanks with suburban condo land after the run-up in home sales.

Market watchers expect more successful applications from developers for the launch of reserve-list sites in the coming months. The latest plot is attractively located at Serangoon Ave 3. It is right next to Lorong Chuan MRT Station and not far off from the Australian International School.

A developer, not named so far, has undertaken to bid at least $83.7 million or about $200 per square foot per plot ratio (psf ppr) for the site, which consultants say can be developed into a condominium with about 300-370 units, depending on units sizes and mix.

Consultants polled by BT generally expect top bids for the plum site to be in the $350-450 psf ppr range, with resulting breakeven costs of about $700-850 psf and target selling prices of $800-1,100 psf on average.

DTZ's head of SE Asia research Chua Chor Hoon notes that units in the Goldenhill Park Condo and Amaranda Gardens nearby have transacted at about $810 psf to $950 psf in the past three months. She projects top bids of about $370-450 psf ppr for the latest plot and reckons that the bidders could be eyeing average selling prices of $1,000 to $1,100 psf when the project on the site is ready for launch in about a year.

Urban Redevelopment Authority will launch the tender for the site in about two weeks. Competition will be hot, with more than 10 bids expected.

Last week, the tender for a condo plot at Chestnut Avenue - less attractively located than the latest land parcel - pulled 13 bids and a much-higher-than-expected top bid of $280 psf ppr by a City Developments and Hong Realty tie-up. The two other reserve list sites triggered recently and whose tenders have yet to close are a condo site at Dakota Crescent and a commercial and residential plot at the corner of Yio Chu Kang and Seletar roads.

Knight Frank executive director (residential) Peter Ow says a condo on the latest plot next to Lorong Chuan MRT will appeal to investors looking to rent out apartments to Australian expat families, given the site's proximity to the Australian International School.

'There's also a good base of demand from HDB upgraders in the Serangoon and Ang Mo Kio vicinities. In addition, some of those living in the surrounding landed estates may be keen to buy a condo unit for their children or as investment,' he adds. Mr Ow expects the highest bids for the land parcel to be about $350-$450 psf ppr, reflecting a breakeven cost of $700-850 psf.

A condo on the plot will be just one station away from Serangoon MRT, where the 'nex' mall is coming up. 'The site is in an established housing estate, with both landed homes and condos, and is also near neighbourhood schools,' observed Ngee Ann Polytechnic real estate lecturer Nicholas Mak. His projection of top bids at $240-315 psf ppr, however, was the lowest of the four property market watchers polled by BT yesterday.

Colliers International executive director (investment sales) Ho Eng Joo, who forecasts top bids in the $350-400 psf ppr band, expects developers to trigger more sites for launch from the reserve list.

The government will release a site in this list for tender only upon successful application by a developer that undertakes to offer a minimum price that is acceptable to the state. Still available on the reserve list are sites that can yield condos near Bishan, Bartley and Bedok MRT stations. Also on offer are plots in places like Yishun, Tampines, Upper Thomson, Jalan Jurong Kechil and Upper Changi Road North.

While developers did not buy residential land last year during the global financial crisis when home sales dried up and funding was tight, they enjoyed a sudden, strong run-up in homes sales between February and July that has left even many developers surprised.

This has had the effect of shrinking the supply pipeline of mass-market homes, especially those on 99-year leasehold sites bought at state tenders. This has tempted developers generally to raise prices across various tiers of the market. However, lately some buyers have started to respond by withdrawing to the sidelines again either because they are priced out or they feel prices are starting to run away again.

A good gauge of affordability and resistance levels will emerge later this week when NTUC Choice Homes previews its 590-unit Trevista condo in Toa Payoh.

Serangoon Site Gets $83.7m Bid

Source : The Straits Times, August 25 2009

It is fourth residential plot triggered for sale since last month

ANOTHER suburban residential site on the Government's reserve list has been triggered for sale, signalling rising developer confidence.

Yesterday, an unnamed developer put in the minimum acceptable bid of $83.7 million, or some $200 per sq ft (psf), for a 1.39ha site in Serangoon Avenue 3.

MAP: LAND PARCEL

Property consultants expect to see tender bids coming in at much higher levels because the site is in an established residential area near an MRT station. The 99-year leasehold site is near Lorong Chuan station - one of the first five stations to open on the Circle Line - as well as the Australian International School.

It has a maximum gross floor area of 38,857 sq m, according to the Urban Redevelopment Authority, and can accommodate an estimated 370 housing units.

Nearby condominiums include Chiltern Park, Chuan Park and The Springbloom.

Colliers International director of investment sales Ho Eng Joo expects to see about 10 developers bidding for the site.

'Sentiment is very strong and there are no sizeable private sites available for en bloc sales. Developers are thus going for the government sites as they need to replenish their land banks.'

Strong demand at recent suburban launches has shrunk the pipeline of such condos, Mr Ho added.

Cushman & Wakefield managing director Donald Han said developers are now in a more buoyant mood and looking to replenish their land banks.

'We have been seeing site after site being triggered since July; it shows that the reserve list is working and helping to provide a steady stream of supply.'

Bids for the Serangoon Avenue 3 plot are likely to range from $100 million, or $240 psf per plot ratio (ppr), to $132 million, or $315 psf ppr, predicted property consultant Nicholas Mak, who is expecting between five and 12 bidders.

Mr Han and Mr Ho are more bullish about price and are expecting bids to come in at as high as $350 psf and $400 psf respectively.

With such bids, break-even levels may range from $600 to $700 psf, and the successful developer could be looking to sell the new units at $750 to $850 psf each.

The Serangoon Avenue 3 site - the fourth plot for residential use triggered for sale since last month - was made available for sale via the reserve list system.

Under this sale method, a site goes up for tender only if developers indicate interest by committing to a minimum bid.

Last week, a tender for a suburban condo plot in Chestnut Avenue attracted an impressive 13 bids of which the highest was at $280 psf of gross floor area.

The response was stronger than expected given that the site is located at quite a distance from the nearest LRT station.

Serangoon Site For Tender

Source : The Straits Times, Aug 24, 2009

A RESIDENTIAL site in Serangoon Avenue 3, with a committed bid of $83.7 million from a developer, will be put up for public tender.

The Urban Redevelopment Authority (URA) said the land parcel was made available for sale through the Reserve List System on Aug 27 last year.

Under the system, the Government will put up a reserve list site for public tender if it receives an application from a developer who commits, by signing an agreement and paying a deposit of 5 per cent of the bid price, to bid for the site at or above the minimum price which is acceptable to the Government.

With a site area of about 1.39 ha, the 99-year leasehold land earmarked for residential development can generate a maximum permissible gross floor area of 38,857sqm.

URA would not release the the name of the developer who has committed to the minimum bid.

URA will launch the public tender for the site in about two weeks. The tender period will be about four weeks.

More details of the land parcel are available on the URA website at http://www.ura.gov.sg/sales/SerangoonAve3(27Aug08)SerangoonAve3-intro(T).html.

Bids Pour In For Bukit Panjang Condo Site

Source : The Straits Times, August 20, 2009

THE fast-improving property market has prompted 13 developers to submit bids to buy a 99-year leasehold suburban land parcel in Bukit Panjang.

The top bid for the Chestnut Avenue condominium plot came in higher than expected at $143.68 million or $280 per sq ft (psf) of gross floor area. This was 132 per cent above the minimum acceptable bid of $120 psf of gross floor area.

The bid came from a joint venture between City Developments' Sunny Vista Developments and Hong Leong Group's Hong Realty. The 22,700 sq m of land can accommodate about 450 flats.

Some of the other top bids are: Sim Lian Land with a bid of $113 million and First Changi Development, a GuocoLand subsidiary, with a bid of $93.38 million.

Frasers Centrepoint put in the most conservative bid of $77 million or $151 psf of gross floor area - still within the range consultants had projected last month.

The 'impressive' number of bids reflects the renewed interest and the growing positive outlook among developers for mass-market residential projects, said CBRE Research director Leonard Tay.

This has been helped by the strong sales of suburban condominiums such as Meadows@Pierce in Upper Thomson and The Gale in Flora Road, experts said.

Still, the developers' bids indicate that they remain cautious. 'The pricing shows that the developers are realistic and not bidding at exceedingly high prices,' said property expert Nicholas Mak.

Based on the top bid, the estimated break-even price for the project should be about $550 to $580 psf, said Mr Tay. This means the eventual selling price might be about $650 psf to $700 psf.

Currently, resale prices of the nearby 99-year leasehold Maysprings range from $480 psf to $600 psf.

Prices at nearby 999-year leasehold and freehold projects such as The Linear, Hazel Park Condominium and Dairy Farm Estate range from $560 to $650 psf.

In a separate development, a group of investors has put up three landed housing sites for sale. Two are in District 15 while the third is in Lornie Road in District 11. These sites, zoned for two-storey bungalow or semi-detached houses, were purchased about two to three years ago when the market was booming.

'The property market growth is gathering pace and looking better these days. Prices have risen and there are not many sites around for sale,' said Mr Steven Ming, director for prestige homes at Savills Singapore, which is marketing the sites. The tender closes on Sept 17.

Mass-Market Site Draws Strong Developer Interest

Source : The Business Times, August 20, 2009

Hong Leong puts in top bid of $280 psf ppr for the plot in Pasir Panjang

An impressive 13 bids were received for a residential site at Chestnut Avenue in Bukit Panjang at the close of the tender yesterday, reflecting the renewed interest and the growing positive outlook among developers for mass market residential projects.

And the top bid of $143.7 million - or $280 per square foot per plot ratio (psf ppr) - put in by two companies in the Hong Leong Group stable was also much higher than expected by analysts, who had predicted a top bid of $200 psf ppr just a month ago.

Analysts said that developers are looking to restock their landbanks after selling a large number of homes - mostly in the mass market - over the past few months.

'The level of interest shown by the bidders of this site at Chestnut Avenue indicate a growing appetite for mass market projects, especially so with suburban condominiums selling well in the present market,' said Leonard Tay, director of CBRE Research.

'With developers' landbank of suburban sites running low, more of the suburban land parcels on the government land sales reserve list are likely to be triggered in the remainder of the year.'

Colliers International's director for research and consultancy Tay Huey Ying agreed. While most developers still have fairly large high-end and luxury landbanks (as sales in these segments have been slow), their mass market landbanks have diminished greatly since the start of the year, Ms Tay said. And since mass market sites are hard to come by in the private sector, the government's land sales programme is expected to be popular.

Among the bidders were large property groups such as Far East Organization, Sim Lian Land, Ho Bee Investments, Allgreen Properties and Frasers Centrepoint. Far East Organization made the second highest bid of $129.1 million, or $252 psf ppr.

The 99-year leasehold site in the state's reserve list was triggered for launch last month, marking the first time in a year that the government has offered a residential site for tender. Then, the applicant who triggered the tender agreed to bid at least $62 million for the site, which works out to $121 psf ppr.

Under the reserve list system, the state offers a site for sale only if there is an application by a developer undertaking to bid at a minimum price acceptable to the government.

Property consultants said then that the successful bid for the site could come in anywhere between $136 and $200 psf ppr.

The top bid by Hong Leong Group is some 132 per cent above the minimum bid price.

The estimated breakeven price for a residential project based on a land price of $280 psf ppr should be around $550-580 psf, said CBRE's Mr Tay. So the eventual selling price might be around $650 psf to $700 psf when the project is ready to launch, he added.

Seletar Site Up For Sale

Source : The Straits Times, Aug 20, 2009

A COMMERCIAL and residential site along Yio Cho Kang Road and Seletar Road is up for sale by public tender, the Urban Redevelopment Authority (URA) said on Thursday.

Located within the established residential area at Seletar Hills and near the future Seletar Aerospace Park, commercial amenities such as shops and food and beverage outlets can be built within the proposed development.

The parcel has a site area of 2.1 ha and is designated for a mixed commercial and residential development.

URA said it had received an application from a developer to put up the land parcel for tender. The developer has committed to bid at least $40.5 million for it.

URA said selection of the successful tenderer will be based on the tendered land price only. Any tender below the minimum bid price will not be accepted.

Condo Land Plot Draws 13 Bids

Source : The Straits Times, Aug 19, 2009

A TENDER for a 99-year leasehold condo plot in Chestnut Avenue drew an impressive 13 bids from developers keen to cash in on strong market for mass market homes.

The top bid came in at $143.68 million or $280 per sq ft of gross floor area, which was about 132 per cent above the minimum allowable bid of $120 psf of gross floor area.

The bidder was a joint venture between City Developments' Sunny Vista Developments and Hong Leong Group's Hong Realty.

The top five bidders include Sim Lian Land with a bid of $113 million and First Changi Development, a GuocoLand subsidiary, with a bid of $93.38 million.

Frasers Centrepoint put in the most conservative bid of $77 million or $151 psf of gross floor area.

Hotel Royal Family Offering Guillemard Apt Block For Sale

Source : The Business Times, August 13, 2009

Fragrance Group picks up freehold site at Changi Road for $33.56m

Melodies Limited, controlled by the Lee family of Hotel Royal, is selling a 20-storey freehold apartment block in Guillemard Road which it developed 11 years ago.

Cassia View, which received Temporary Occupation Permit in 1998, comprises a total of 72 units

The price is about $70 million, reflecting $783 per sq ft based on existing strata area of 89,362 sq ft.

Colliers International, which is marketing the property, Cassia View, through an expression-of-interest exercise, says that the buyer could either spruce up the 72 units and sell them individually or tear down the property and redevelop it.

Cassia View is understood to have utilised the maximum gross floor area (GFA) allowed for the site based on a 2.8 plot ratio under Master Plan 2008. The site is zoned for residential use.

Nevertheless, Colliers executive director (investment sales) Ho Eng Joo reckons the buyer could redevelop the property, given its age, as there may be scope for improving the layout to better suit current tastes.

Based on Cassia View's GFA of 105,823 sq ft, the $70 million price reflects a land cost of $661 psf per plot ratio if the new owner chooses to redevelop it.

Some 28 of Cassia View's existing 72 units are currently let on short-term leases of up to a year.

Dakota Residences, a 99-year leasehold condo nearby, is now selling for about $900 psf on average.

The expression-of-interest exercise for Cassia View closes on Sept 2.

Separately, Fragrance Group last week picked up a freehold site in Changi Road for $33.56 million.

The deal was brokered by DTZ. The land area is 28,545 sq ft.

Fragrance said that it plans to develop the site into a five-storey mixed development comprising commercial space and apartments.

It intends to start construction and sale of the project in the second half of financial year 2009.

Kaki Bukit Industrial Site Attracts 18 Bids

Source : The Business Times, August 13, 2009

An industrial site along Kaki Bukit Road 2, put up for sale by the government, drew an impressive 18 bids by the close of tender yesterday.

The Urban Redevelopment Authority (URA) said that the highest bid received for the 30-year leasehold site was $12.1 million, more than double the minimum bid price of $5 million.

That highest bid, which works out to just under $105 per square foot per plot ratio (psf ppr), was placed by Kng Development, whose shareholders include Ng Teng Yeng, brother of property tycoon Ng Teng Fong; Kim Chan Wah and Ng Hock Lye.

Kng's bid is 16.5 per cent above the second highest bid of $10.4 million, or $90 psf ppr, submitted by Lee Siaw Ling, Low Khoon Huat and Ang Lai Huat.

It is also higher than the $72 psf ppr which Eastpoint Development paid for a 30-year leasehold industrial site along Kaki Bukit Road 3 in August 2007.

This latest site, offered from the government's reserve list, has an area of 1.07 ha and a gross plot ratio of one. CBRE Research says that the breakeven cost for Kng Development is likely to be $250 psf.

'The robust response to the tender reflects the prevailing improving business sentiment,' said Li Hiaw Ho, executive director at CBRE Research.

He noted that the top six bids were all above $75 psf ppr and 'could be reflective of the bidder's expectations that Singapore's manufacturing sector will improve in the near future'.

Colliers International director (industrial) Tan Boon Leong said that the large number of bids received was not surprising as the 'quantum amount is small'.

He thinks that the good response reflects greater confidence in the economy, as well as the fact that the plot lies within a mature industrial estate and is zoned for a Business 2 development, which means that it can be developed for a range of clean, light and general industrial uses.

Mr Tan also said that some of the bids were placed by contractor developers 'who are probably more competent in judging their construction costs, and with prior experience, may thus be bolder when it comes to putting in bids'.

URA's decision on the award of the tender will be made after the bids have been evaluated, and disclosed at a later date.

Joo Chiat Shophouses Sold For S$25.6m To World Class Land

Source : Channel NewsAsia, 11 August 2009

A cluster of 18 shophouses fronting Joo Chiat Road and Onan Road has been sold to property developer World Class Land for S$25.6 million.

This translates to S$410 per square foot on the existing gross floor area of the properties.

World Class Land is a unit of public-listed Aspial Corp.

The freehold site consists of two back-to-back rows of nine shophouses, each three-storeys tall.

The total gross floor area of the 18 shophouses is estimated to be about 62,500 square feet.

Under the 2008 Master Plan, these shophouses are gazetted as conservation buildings.

In a statement, Aspial said it plans to develop a mixed commercial and residential project at this newly-acquired site.

The costs of the acquisition and development will be funded internally and through bank borrowings. - CNA/yt

Aspial Unit Bags 18 Shophouses For $25.6m

Source : The Business Times, August 12, 2009

WORLD Class Land, a subsidiary of listed Aspial Corporation, has bought a cluster of 18 freehold shophouses fronting Joo Chiat and Onan roads for $25.63 million.

'The transacted price reflects $410 per square foot on the existing gross floor area of 62,489 sq ft. Upon redevelopment, the property may have the potential of achieving a gross floor area of 81,000 sq ft,' said Credo Real Estate managing director Karamjit Singh, whose firm handled the sale of the properties through a tender that closed last week.

The seller is a family trust.

The properties comprise two back-to-back rows of nine units of three-storey shophouses with a site area of 35,440 sq ft.

Under Master Plan 2008, the shophouses along Joo Chiat Road are gazetted as conservation buildings with a 3.0 gross plot ratio, while the portion that fronts Onan Road is zoned for residential use with a 1.4 gross plot ratio.

'The buyer may consider refurbishing the buildings while adding more floor area to the shophouses in Joo Chiat Road before renting them or selling them as individual shophouse units,' Mr Singh said.

'As for the Onan Road shophouses, the buyer has the option to redevelop them into a residential block of up to five storeys or refurbish them for sale or investment.

'The tender attracted developers and private investors with experience in restoring conservation shophouses.'

3rd Site Triggered For Sale In 3 weeks

Source : The Straits Times, August 8, 2009

Developer commits to bid $40.5m for govt plot in Seletar Hills area

YET another government land parcel has been triggered for sale after a developer committed to bid at least $40.5 million for the site at the corner of Yio Chu Kang and Seletar roads.

The site is the third government plot triggered for sale in as many weeks after developers tendered bids on land in Dakota Crescent and Chestnut Avenue.

'Developers are looking at the market two years down the road,' said Jones Lang LaSalle's head of South-east Asia research Chua Yang Liang.

'We are still in a contraction mode but the global credit crunch has eased somewhat in Singapore and there is more certainty that we've seen the worst.'

The recent run-up in demand also points to a more positive mood, he said.

The latest land parcel is a 2.1ha commercial and residential site located within the established residential area at Seletar Hills and near the future Seletar Aerospace Park.

With a gross plot ratio of 1.4, it can generate a maximum permissible gross floor area of about 29,400 sq m.

The Urban Redevelopment Authority (URA) estimates the site can accommodate 225 housing units.

Shops and food and beverage outlets can be built on 4,500 sq m of commercial space within the proposed development.

Interest in the site is likely to be strong, given the high demand for suburban condos, experts said.

'Given the current pace of sales for suburban condominiums now, the interest for land sites is high and the response to this site should be strong, with likely six to eight bidders,' said the executive director of CBRE Research, Mr Li Hiaw Ho.

Bids are expected to range from $250 to $300 per sq ft per plot ratio, he said.

At that level, they will be about 95 per cent to 134 per cent above the trigger price, which works out to $128 psf per plot ratio.

Mr Li said new apartments on the site should fetch prices of between $700 and $750 psf.

This is based on the expected bids and the resale prices of some of the newer condominium units in the Yio Chu Kang area, which are going at between $600 and $700 psf.

The site was made available for sale via the reserve list system.

Under this sale method, a site goes up for tender only if developers indicate interest by committing to a minimum bid.

There had been much uncertainty in the market earlier, with developers showing little interest in buying sites, but the pick-up in recent months has been fast and furious.

Chesterton Suntec International research and consultancy director Colin Tan said the triggering of the Seletar site is another sign of the strong demand out there.

'Even the developers feel that there is enough demand out there. It's the market talking,' said Mr Tan.

'If the demand from investors is so strong..., then the Government should announce immediately that it will be activating the confirmed list once again at the next review,' he said.

This should cool the market by telling investors that, with more supply coming up, the potential for higher profits will not be there, he said.

Under the confirmed list, sites are put up for tender at scheduled dates, regardless of developers' interest.

The URA said it will launch the tender for the Seletar Road site in about two weeks. The date will be announced later.

URA Launches Residential Site At Dakota Crescent For Public Tender

Source : Channel NewsAsia, 06 August 2009

The government has launched a residential site at Dakota Crescent for public tender.

This comes after a developer said it would bid at least S$130 million for the site two weeks ago.

Dakota Crescent (image by URA)

The land parcel, which was made available for sale through the Reserve List System, has a site area of 1.7 hectares.

The 99-year site, which is located near Old Airport Road, can generate a maximum permissible gross floor area of 647,000 square feet.

The tender closes on September 8.

The Urban Redevelopment Authority (URA) said on Thursday the selection of the successful bidder will be based on the tendered land price only.

The minimum bid price for the site is S$130 million. - CNA/yb

Balmoral, Tagore Sites For Sale

Source : The Business Times, August 6, 2009

SAVILLS Singapore has launched for sale two residential properties - the freehold No 3 Balmoral Road with an indicative price of $65 million; and an 86,402 square foot plot at No 162 Tagore Avenue, within the Teachers Housing Estate, with an indicative price of $15 million. The latter is being sold on a 99-year leasehold tenure by the Singapore Teachers' Union, which holds the freehold interest in the property.

No 3 Balmoral Road: This is a development of 11 apartments, all leased out, but Savills is marketing the property for its redevelopment potential

No 3 Balmoral Road currently comprises a development of 11 apartments, all leased out, but Savills is marketing the property for its redevelopment potential. The property is owned by an investment company and has a land area of 23,821 sq ft, a permissible plot ratio (ratio of maximum gross floor area to land area) of 1.6 and a height restriction of 12 storeys.

The site has been granted written permission by the Urban Redevelopment Authority for the development of 30 residential units. Savills said that such a development would have an estimated total potential saleable area of about 45,000 sq ft. The figure is understood to include bay windows and planter boxes. Development charge has been fully paid, up to a gross floor area (GFA) of about 41,918 sq ft, which includes 10 per cent additional GFA allowed for balconies.

The $65 million price works out to $1,705 per square foot per plot ratio (psf ppr) based on the 1.6 plot ratio. However, inclusive of the balcony allowance, the land price translates to a lower $1,551 psf ppr. Savills said that the $65 million works out to about $1,450 psf on the 45,000 sq ft potential saleable area.

Market watchers note that Keppel Land's 18-storey Madison Residences on the former Naga Court site along Bukit Timah Road, which starts selling today, is expected to be priced at about $1,700 psf on average.

The Tagore Avenue site, although currently zoned as 'civil & community institution', has approval for a three-storey mixed landed development, allowing a potential development of either 33 landed homes or 40 cluster houses. The tender for this site closes on Sept 1 while the expression of interest for the Balmoral property closes on Sept 3.