3 prime apartment buildings near Orchard Road sold for $190.5m
http://www.straitstimes.com/business...sold-for-1905m
3 prime apartment buildings near Orchard Road sold for $190.5m
Nov 25, 2016
Residences near Orchard Road, owned by group of investment holding firms, sold to 3 developers
Rachael Boon
Three plum residential buildings near Orchard Road have been sold to three different developers for a total of $190.5 million.
Property consultancy firms JLL and CBRE said in a joint statement yesterday that the tenders for the freehold properties in Grange Road, Cuscaden Walk and Hullet Road were launched in October with a total guide price of $185 million. The firms jointly managed the tender exercise, which closed on Nov 2, on behalf of vendors seeking offers for the buildings individually or as one lot.
In September, the three properties, owned by a group of three investment holding firms, were estimated to fetch $200 million in total. The owners were reportedly part of a trust operating in Britain.
Mr Karamjit Singh, international director and head of residential at JLL, said: "These properties attracted interest from a wide variety of parties, including long-term investors and those looking to build serviced apartments, aside from developers."
A consortium led by Sustained Land is paying $103.8 million for 3 Cuscaden Walk - comprising 11 large four-bedroom apartment units - which has a land area of 21,560 sq ft with a gross plot ratio of 2.8.
This reflects a land rate of about $1,826 per sq ft per plot ratio (psf ppr) on the potential gross floor area, including an estimated development charge of $6.43 million.
A unit of Singapore-listed property and hospitality group Roxy-Pacific Holdings bought 120 Grange Road, an 11-storey block of 18 flats, for $48.5 million or $1,841 psf on the strata area. It has a total strata area of 26,350 sq ft, on a land area of 15,780 sq ft, with a gross plot ratio of 2.1. Roxy-Pacific Holdings executive chairman Teo Hong Lim said: "The allowable plot ratio is 2.1 times and based on the baseline which is close to 2.1, we only need to pay development charges for the bonus balconies' gross area of additional 10 per cent. As a development site, our purchase price is estimated at $1,463.6 psf ppr."
Roxy-Pacific also said the acquisition will be financed by internal funds and bank borrowings.
The smallest of the three properties, 8 Hullet Road, was sold for $38.2 million or $2,073 psf to Hullet Development, a consortium led by Mr Patrick Kho of Lian Huat Group.
The site has a 10-storey block of 18 apartments with a total strata area of 18,428 sq ft.
JLL noted that two apartments of 2,680 sq ft and 3,348 sq ft at The Claymore are up for sale by private treaty by the same sellers of the three properties.
Mr Jeremy Lake, executive director of investment properties at CBRE Singapore, said Hullet Development plans to build a high-end development, "given the excellent location... in the heart of Orchard Road".
Mr Singh said that the results of the tender exercise reflect "confidence in the stability of the high-end residential market which, prior to this year, saw a steady decline in values over the preceding four years".
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$103.8m How much 3 Cuscaden Walk was sold for.
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$48.5m How much 120 Grange Road was sold for.
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$38.2m How much 8 Hullet Road was sold for.
3 prime residential properties off Orchard Road sold for S$190.5m
http://www.businesstimes.com.sg/real...old-for-s1905m
3 prime residential properties off Orchard Road sold for S$190.5m
CBRE attributes the competitive bidding process to their location and palatable deal sizes
By Lynette Khoo
[email protected]
@LynetteKhooBT
Nov 25, 2016
THREE prime residential buildings near Orchard Road have been sold to three different group of developers for S$190.5 million in total.
Tenders for the freehold properties located at 3 Cuscaden Walk, 120 Grange Road, and 8 Hullet Road were launched last month simultaneously with an aggregate guide price of S$185 million and were closed on Nov 2.
The tender exercise was managed jointly by JLL and CBRE on behalf of the owner, who was seeking offers for the three buildings - each comprising a single apartment tower 10 to 12 storeys high - individually or as one lot.
Sustained Land, controlled by Douglas Ong, paid S$103.8 million for the 21,560 square feet plot at 3 Cuscaden Walk, which has a gross plot ratio of 2.8. This represents S$1,826 per square foot per plot ratio (psf ppr) on the potential gross floor area (GFA), including an estimated development charge of S$6.43 million payable upon redevelopment.
Singapore-listed Roxy-Pacific Holdings snapped up the property at 120 Grange Road, which spans 15,780 sq ft of land area with gross plot ratio of 2.1, for S$48.5 million or S$1,841 psf on existing strata area.
The property at 8 Hullet Road with 10,733 sq ft in land area went to Hullet Development, a consortium led by Patrick Kho, managing director of Lian Huat Group, for S$38.2 million or S$2,073 psf on existing strata area. The consortium also includes Expand Construction which is controlled by Von Lee, Ong Soon Liong, and Monica Chee, the spouse of Chong Kee Hiong who is member of parliament and CEO of the Reit manager for OUE Hospitality Trust.
Hullet Development is planning to build an exclusive high-end development on the site, according to CBRE.
Roxy-Pacific executive chairman Teo Hong Lim told The Business Timesthat the group plans to build 40-50 units at 120 Grange Road, which will translate to S$1,463 psf ppr on maximum strata GFA. This could imply a breakeven of above S$2,100-2,200 psf ppr.
The seller of these three properties is said to be a trust operated out of the United Kingdom, and the assets are being managed by a London-based wealth-management company that makes investments for rich individuals, families and charitable endowments. The apartments are held through foreign-incorporated companies.
This vendor has also engaged JLL to market two apartments of 2,680 sq ft and 3,348 sq ft respectively at The Claymore by private treaty.
JLL international director and head of residential Karamjit Singh noted that the response for the three buildings was strong and the interest came from a wide variety of parties including long-term investors and those looking to build serviced apartments, apart from developers.
"The results reflect an underlying confidence in the stability of the high-end residential market, which prior to this year, saw a steady decline in values over the preceding four years," he said.
CBRE executive director for investment properties Jeremy Lake attributed the competitive bidding process to the location of the three sites and their palatable deal sizes.
"Sentiment towards the prime residential market has improved since the middle of the year and some developers have been asking if there are sites for sale," he added.
