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View Full Version : Ganges Centre sold en bloc for $23.5m



mr funny
13-05-11, 20:19
http://www.straitstimes.com/Money/Story/STIStory_668077.html

May 13, 2011

Ganges Centre sold en bloc for $23.5m

Industrial property in Havelock could be redeveloped into residential units

By Esther Teo, Property Reporter


INDUSTRIAL property Ganges Centre in Havelock Road has been sold for $23.5 million in a collective sale and could be redeveloped into about 30 to 36 residential apartments.

The 2,109 sq m site was purchased by Peninsula Park Residences - a unit of mainboard-listed Pollux Properties - for $518 per sq ft (psf) per plot ratio (ppr). The price, however, does not include any development charge.

Pollux said in a statement filed with the Singapore Exchange on Tuesday that it intends to apply to the Urban Redevelopment Authority (URA) for a change of use of the land to residential and to top up its lease to 99 years, or a period allowed by the relevant authorities.

The 99-year leasehold site - with just 24 years left on its lease - is zoned residential under the 2008 Masterplan and has a plot ratio of two. The Straits Times understands that Urban Front Real Estate brokered the deal.

Experts say a development charge will be levied to convert the land to residential use and to intensify its usage. They estimate this charge might range from $20 million to $30 million.

This means the eventual price that the developer must fork out may be about $1,000 psf ppr for the site with a gross floor area of 45,404 sq ft.

The existing building is expected to be demolished to make way for new apartments.

About 30 to 36 apartments of an average of 1,200 sq ft each can be built, said Mr Kevin Lim, Urban Front Real Estate's executive director of investment sales.

Pollux said the price was also arrived at after negotiations with the property's 11 owners, and will be financed by internal funds and bank borrowings.

The most recent sale at Ganges Centre was a third-floor 514 sq m unit for $680,000 - or $123 psf - in March last year, according to caveats lodged with the URA.

Separately, 16-unit Haig Mansions in Haig Road was also sold in a collective sale for $21.5 million, marketing agent Credo Real Estate said in a statement yesterday.

Vicland Realty picked up the 20,226 sq ft site with a gross floor area of 31,148 sq ft at about $720 psf ppr. This assumes a gross plot ratio of 1.54 and a 10 per cent balcony allocation.

The site can yield about 50 apartments of 600 sq ft on average, depending on layout and configuration, Credo said, with each owner expected to receive gross sale proceeds of more than $1.3 million.

Credo executive director Yong Choon Fah said the site was well-received by the market because of its regular land shape, popular location in district 15 and healthy take-up rates in new projects in the vicinity.

'Haig Mansions has an added advantage of being close to a new growth area - Paya Lebar Central, which has been earmarked by the Government to be developed into a bustling commercial hub with offices, retail, hotel and public spaces,' she added.

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