Homepage
PR Newswire
09-07-2014, 01:04 AM
(08-07-2014, 09:59 PM)greengiraffe Wrote: http://infopub.sgx.com/FileOpen/20140708...eID=304571
Total price paid $141.27m is more than double expected S$60.3m back in 2007. PPR land costs worked out to be S$1571 psf for a mixed commercial / residential development.
Is it fair?
Vested
GG
Old article - http://www.stproperty.sg/articles-proper...le/a/50804
INVESTORS looking for hotel development sites have just been given a choice of three properties in the Balestier/Lavender area.
The Urban Redevelopment Authority (URA) yesterday made available for application a 99-year leasehold reserve list site at Jellicoe Road opposite Lavender MRT Station.
And the freehold Ruby Plaza and adjoining Balestier Towers are being offered for collective sale.
Realtorhub Real Estate, which is marketing the two adjoining properties through separate sale exercises, said the joint owners expect bids above $670 per square foot of potential gross floor area.
Based on this unit land price, the price for Ruby Plaza would be at least $79 million and that for Balestier Towers at least $60.3 million.
Ruby Plaza is on a 39,493 sq ft site and Balestier Towers on 29,986 sq ft. Both sites are zoned for commercial and residential use with a 3.0 plot ratio - the ratio of maximum potential gross floor area to land area - under Master Plan 2003.
Ruby Plaza has received outline planning permission for hotel use and Realtorhub believes the same permission will probably be given for Balestier Towers.
Realtorhub director Daniel Ng believes developers could also seek URA permission to redevelop the sites into a medical centre, to capitalise on strong demand for such space.
As for the 45,408 sq ft hotel site at Jellicoe Road being offered by URA, CB Richard Ellis executive director Li Hiaw Ho reckons it can be developed into a hotel with about 400 rooms.
He estimates the site could fetch slightly more than $420 psf per plot ratio achieved for the tender of URA hotel site at Belilios Road this week.
This is because the Jellicoe Road plot has a better location and easy access to the MRT.
Two Redevelopment Sites at Balestier and Pasir Panjang Sold for $92,300,000 and $13,230,000
21 December 2012
Knight Frank Singapore is pleased to announce the sale of Leong On Building, a mixed use Commercial and Residential redevelopment site located at 520 Balestier Road, to Techkon Development (Sembawang) Pte Ltd at $92,300,000, as well as the sale of a residential redevelopment site at 241 Pasir Panjang Road at $13,230,000 to Ley Choon Development Pte Ltd, a subsidiary of Ley Choon Group Holdings Limited.
520 Balestier Road
The subject property is a family-held asset which was put up for sale by public tender which closed on 13 Dec 2012. Knight Frank was appointed as the sole marketing agent by the family to advise on the divestment and to market the property for sale.
“Techkon Development emerged the winner in a keenly contested tender. The tender received overwhelming response and closed with several parties offering above $75 million. The property generated very strong interest due its prominent location next to the upcoming integrated hotel-park development at Zhongshan Park as well as the flexibility offered to prospective purchasers in terms of the commercial and residential mix in the new development,” says Mr Ian Loh, Director & Head of Investment, Knight Frank.
The sale follows closely the successful sale of another mixed-use Commercial and Residential redevelopment site at 71 & 73 Oxley Rise which was sold to Oxley Rise Pte Ltd for $130 million just a few weeks ago, also brokered by Knight Frank Pte Ltd.
Leong On Building has a land area of 1,971.3 sq m (approx. 21,219 sq ft). Under the 2008 Master Plan, the site is designated as “Commercial and Residential” with a Gross Plot Ratio (GPR) of 3.0. At GPR of 3.0, the potential Gross Floor Area (GFA) is approximately 5,913.9 sq. m (approx. 63,657 sq ft). In-principle approval from Singapore Land Authority has been obtained to amalgamate the subject property with an adjoining State land lot of approximately 830 sq ft.
The subject property is located within the Balestier area, an estate rich in heritage value and which is undergoing rejuvenation and transformation to become an exciting area for business, leisure and entertainment. The location is also in close proximity to the commercial, retail and medical hubs at Novena and Orchard Road. The subject site is situated approximately 650 metres to Toa Payoh and Novena MRT stations. In addition, it is well served by major roads such as Pan Island Expressway (PIE) and Central Expressway (CTE), providing excellent connectivity to the rest of the island. The Central Business District at Raffles Place and Marina Bay is a short 15 minutes’ drive away.
On site is an existing 6-storey industrial building built in the 1970s. The property is a family-held asset and as such no Strata Titles Board approval is required.
“The successful sale price of $92,300,000 translates to an equivalent land rate of approximately $1,470 to $1,498 psf per plot ratio (psf/pr) depending on the mix of Commercial and Residential quantum proposed, after factoring in an estimated development charge at prevailing rates. If an additional 10% balcony area for the residential component is included, and after factoring in the potential alienation of an adjoining State land, it translates to about $1,376 to $1,385 psf ppr,” says Mr Loh.
“There has been a total of 4 mixed-use Commercial and Residential redevelopment sites sold this year. They include Leong On Building at $92.3 million, 71 & 73 Oxley Rise at $130 million in November and McDonald’s Place at $150 million in April, which were all brokered by Knight Frank. Such mixed-use sites are popular as strata retail shops have been selling very well in recent months. For instance, commercial units at the nearby One Dusun Residences have been transacted at approximately $4,300 to $8,000 psf, retail shops at Bugis Cube have fetched prices of approximately $2,900 to $6,900 psf, and retail units at Oxley Tower have fetched prices of up to $8,600 psf,” he adds.
http://www.knightfrank.com.sg/news/two-r...01370.aspx
Year 2014 LKH - $1571 psf
Year 2012 Leong On Building(now VIIO@Balestier) - $1470-$1498 psf, before adding in balcony space.
Price difference psf is +/- 7% and although it is not dirt cheap, but it is a reasonable price given that there is now a "Health City Novena" being planned by the government here. I see that this plot of land is eastwards of the proposed National Skin Centre's expansion and National Healthcare Group's HQ. Strata-titled retail space is likely to be red-hot here given the increased amount of people working here from 2020 onwards.
A rough estimate of the profitability of this project can be derived from the response of VIIO@Balestier which should be launching very soon.
Vested
[Image: GszTeUu.jpg]