Soilbuild beefs up Balestier presence
Singapore Companies
Published June 22, 2006
Soilbuild beefs up Balestier presence
Group signs options to buy properties worth $44.5m
By CRYSTAL NEO
SOILBUILD Group Holdings is expanding its presence in the Balestier Road area. The group said yesterday that it has signed various options to purchase properties worth $44.5 million through its wholly owned subsidiary SB (Blueteak) Development Pte Ltd.
They include 24 units of apartments under a collective sale in Minbu Road and Martaban Road and adjacent terrace houses and apartments. The owners of the 24 units who have given their sale consent will get about 70 per cent more than what they will get if they sell their units individually, said property consultants Teakhwa Real Estate. Soilbuild said it will also be acquiring certain adjoining lots.
'Altogether, the total land size is about 4,498 sq metres and the total land cost is about $44.5 million,' said Soilbuild. 'Based on the approved plot ratio of 2.8 and an estimated development charge of $0.2 million, the cost of the land is about $329 psf per plot ratio.'
The combined freehold site can be re-developed into a condominium of maximum 36 storeys, with about 90-100 units assuming an average size of 1,500 sq ft per unit. The breakeven cost for the new condominium development on the freehold plot is estimated to be approximately $560 psf, said Teakhwa. This new project is expected to be launched by 2007.
'From our completed projects, we have also built up an extensive database of potential buyers and we are confident that there will be a strong demand for the new condominium units at Minbu/Mandalay Roads,' said Low Soon Sim, Soilbuild's executive director.
This is not the first time Soilbuild has had projects in the Balestier Road area. Its other projects include the 18-storey Pinnacle 16 and Mandale Heights. Including the new purchase, Soilbuild will have four new upcoming residential property projects, including One Tree Hill Residence, the site at Bright Apartments and the recently acquired site at Cashew Road. The latest acquisition will be funded by internal resources and bank borrowings.
UIC buys Upper Bukit Timah en bloc site for $82m
Property
Published August 17, 2006
UIC buys Upper Bukit Timah en bloc site for $82m
By ARTHUR SIM
UNITED Industrial Corporation (UIC) has bought a collective en bloc sale site in Upper Bukit Timah for $82.25 million, continuing its efforts to step up its residential developments.
The site, called HJ Heights, overlooks Bukit Batok Nature Park. At 207,134 sq ft it is thought to be one of the largest freehold collective sites in the area. The selling price, together with an estimated development charge of $5.73 million works out to be $303 per sq ft per plot ratio.
On Merbok Crescent, the site is zoned for residential use with a plot ratio of 1.4 and a five-storey building height. It can potentially accommodate about 230 units of 1,200 sq ft apartments. The breakeven price is expected to be $530-$540 psf on average.
UIC recently launched the 562-unit condominium, One Amber, in Katong. It also has interests in an upcoming 160-unit residential development in Tiong Bahru and a 138-unit residential development on St Patrick's Road in the east.
The latest acquisition was handled by United Premas which says that the sale has set a new benchmark for that area.
Suzie Mok, deputy director, asset management at United Premas, said: 'As reflected by the HJ Heights sale, collective sale sites with good development potential and priced correctly will continue to interest developers, though located outside the prime districts.'
Nassim Park sold to Park Developments for $380m
Singapore Companies
Published August 31, 2006
Nassim Park sold to Park Developments for $380m
The JV company is owned by UOL and Kheng Leong subsidiary Russville
By LESLIE YEE
IN ANOTHER major collective sale transaction, a joint venture company owned by UOL Group and a subsidiary of Kheng Leong Co Pte Ltd has signed a deal to buy Nassim Park for $380 million.
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Prime location: Nassim Park sits in an exclusive residential area surrounded by embassies, good class bungalows and high-end developments
Including an estimated development charge of $8 million, the price works out to around $388 million or about $1,131 per square foot (psf) of potential gross floor area.
The breakeven cost for a new development on the Nassim Park site is estimated to be between $1,600 and $1,700 psf of gross floor area.
The joint venture company, Park Developments, is 70 per cent owned by UOL and 30 per cent owned by Kheng Leong's subsidiary, Russville.
Kheng Leong is considered as an associate of UOL's directors Wee Cho Yaw, Wee Ee Lim and Wee Ee Chao under the listing rules.
UOL and Russville are currently in negotiations with an unrelated third party for equity participation in Park Developments.
Completed in 1992, Nassim Park sits on a 245,135 square feet site which is zoned for residential use with a 1.4 plot ratio (ratio of potential maximum gross floor area to land area) and a maximum height of four storeys under Master Plan 2003.
Market players note that the price psf for such a choice location would have been steeper if the height restriction was higher as developers can sell units on upper floors at a higher price psf.
Located along Nassim Road, Nassim Park sits in an exclusive residential area surrounded by embassies, good class bungalows and high-end developments. The site is the largest condominium site on Nassim Road.
Michael Ng, managing director of Savills Singapore, which brokered the sale of Nassim Park, said the sale price achieved 'reflects strong demand for quality sites in prime area'.
He added: 'Confidence in the luxury condominium segment is robust.'
The existing Nassim Park has 104 strata-titled apartments and townhouses. The conditional agreement to sell Nassim Park to Park Developments was entered into with subsidiary proprietors of strata lots with not less than 80 per cent of the share values in Nassim Park.
Singapore's residential property market is currently in the midst of an upcycle led by the high end of the market.
Shing Kwan pays $29m for St Martin's Lodge
Property
Published August 31, 2006
Shing Kwan pays $29m for St Martin's Lodge
Price for the 19,335 sq ft freeholdsite works out to $1,154 ppr
By KALPANA RASHIWALA
FORMER Singapore Land chairman SP Tao's Shing Kwan Group has bought St Martin's Lodge in St Martin's Drive for $29.25 million in a collective sale.
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St Martin's Lodge: The site can be redeveloped into a new project with about 15 units averaging 1,800 sq ft
The unit land price of the 19,335 square feet freehold site works out to $1,154 per sq ft of potential gross floor area including an estimated $2 million development charge.
The site is zoned for residential use with a 1.4 plot ratio and a maximum height of five storeys.
It can be redeveloped into a new project with about 15 units averaging 1,800 sq ft. Analysts estimate the breakeven cost could be $1,550 to $1,650 psf
A company owned by Mr Tao's Shing Kwan Group was the highest bidder in a tender closed on Aug 22. CB Richard Ellis brokered the deal.
Garden Estates, part of Singapore's Hong Leong Group, developed the 12-unit St Martin's Lodge, which was completed only in 1994. Owners of 11 of the 12 units have so far agreed to a collective sale.
They will walk away with handsome gains, receiving $2.3 million if they own a 1,248 sq ft apartment or $2.6 million for a 1,668 sq ft unit - between 60 per cent and 100 per cent more than the units would have fetched if sold individually.
Shing Kwan Group is looking primarily at boutique residential developments in Singapore with an all-up investment of about $50 million each.
Cosmopolitan Development - Shing Kwan's joint venture with Mackmoor Pte Ltd, which is controlled by parties linked to Indonesia's Metropolitan group - developed 11 Amber Road, a 40-unit apartment block in Katong that is fully sold. It also developed The Quayside apartments and retail outlets along the Singapore River, and Anson House.
Shing Kwan also has interests in China and Sri Lanka - including Shanghai Mart, Landmark Towers complex in Beijing, Mandarin Garden Hotel in Nanjing and The World Trade Center in Colombo.
Hiap Hoe buys District 9 site for $47m
Singapore Companies
Published September 1, 2006
Hiap Hoe buys District 9 site for $47m
By UMA SHANKARI
PROPERTY developer Hiap Hoe Limited said yesterday that it has bought a residential site at Cavenagh Road - which was put up for en-bloc sale in July - for $46.8 million.
The freehold site of some 43,100 square feet, which right now houses the five-storey Le Chateau consisting of 35 apartments and maisonettes, is in the prime District 9.
Provisional planning permission has been obtained for a residential development comprising three seven-storey and one five-storey blocks, with a total of 89 units.
'As the development is located in the city area, the directors believe that the development would have substantial development potential,' said Hiap Hoe in a statement to the Singapore Exchange.
Hiap Hoe bought the site through its wholly owned subsidiary Yong Hock Trading (S) Pte Ltd.
The purchase price was arrived at on a willing buyer-willing seller basis, said Hiap Hoe.
In addition to the purchase price paid, the site comes with a development charge (previously estimated to be $290,000) and state land alienation cost of $5.8 million.
Hiap Hoe's final cost is estimated to be about $462 per square feet per plot ratio, said Colliers International, which marketed the property.
Colliers said that the site had attracted 'keen interest' from a number of parties before it was sold to Hiap Hoe.
The site is next to a piece of state land of about 11,400 square feet, which Hiap Hoe could choose to buy for amalgamation.
Hiap Hoe said that the purchase will be fully funded through internal funds and/or bank borrowings. The transaction is also not expected to have any material effect on the net tangible assets per share or earnings per share of the company for the current financial year.
The purchase marks the second one made by Hiap Hoe in the city area recently. In February, the company said it bought a plot of vacant land at Oxford Road for $12.5 million - also for residential development.
Hiap Hoe's shares closed unchanged at 4.5 cents yesterday.
The company recently reported that revenue from the sales of residential development properties for the half year ended June 30 increased by 12.6 per cent to $15.2 million, up from $13.5 million in the same six months last year.
Chip Eng Seng tipped as buyer of Grange Tower
Singapore Companies
Published September 4, 2006
Chip Eng Seng tipped as buyer of Grange Tower
Site's reserve price of $1,200 psf ppr a new benchmark for area
By KALPANA RASHIWALA
CHIP Eng Seng is close to finalising a deal to buy Grange Tower through a collective sale, sources said.
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Freehold site: Grange Tower can be redeveloped into a 36-storey condo with over 80 units
The reserve price of the property - said to be about $180 million - has been met.
This works out to $1,200 per square foot (psf) of potential gross floor area. No development charge (DC) is payable.
'This will be a new high for the Grange Road location as prices like $1,200 psf per plot ratio are currently seen only in the super-prime Ardmore/Draycott location,' said a property market watcher.
The deal comes just a fortnight after news broke that the tender for the nearby Horizon Towers at Leonie Hill failed to attract bids that met the owners' reserve price - which works out to $835 psf per plot ratio inclusive of an estimated $31 million land premium to top up the site's lease to 99 years from a remaining term of 72 years. Apparently, no DC is payable for Horizon Towers.
Market watchers had suggested that part of the reason for the failure of the Horizon Towers tender, handled by First Tree Properties, is the site's huge land area of 204,742 sq ft, which increases the business risk to any potential developer.
In contrast, the freehold Grange Tower has a smaller land area of 53,527 sq ft.
The site is zoned for residential use with a 2.8 plot ratio and 36-storey maximum height.
This means the site can be redeveloped into a new condo with about 83 units averaging 1,800 sq ft.
CB Richard Ellis, which is brokering the deal, could not be contacted.
Once it clinches Grange Tower, Chip Eng Seng may approach the Singapore Land Authority to potentially acquire a 1,632-sq-ft strip of state land in front of the property.
Doing this will not only enhance the site's area but also lower the unit land price to the developer.
Grange Tower is a 20-storey development comprising 76 apartments and four penthouses, completed 23 years ago.
One of its units has an infamous owner - former Asia Pacific Breweries (APB) executive Chia Teck Leng, who is serving a 42-year jail term for using forged documents to borrow large sums in APB's name for massive gambling debts incurred overseas.
Sources say Chip Eng Seng's property arm Chip Eng Leong Enterprise - recently renamed CEL Development - is expected to team up with a property fund for the Grange Tower purchase.
CEL Development recently teamed up with Lehman Brothers to redevelop Venus Mansion in Cairnhill.
Chip Eng Seng also has a stake in Ritz Residences nearby at Devonshire Road, on the former Quelin Gardens and Parc Devon plots. Its partner in this project is Keppel Land.
Chip Eng Seng bought the Quelin Gardens plot in 2004 for $79 million or $491 psf per plot ratio inclusive of development charge.
Re: Successful Collective Sales (as reported in the media)
Chip Eng Seng ties up with Chicago's Citadel
8 Sep 06
Joint-venture company buys Grange Tower in $180m en bloc sale
CHIP Eng Seng Corporation has tied up with a fund of Chicago-headquartered Citadel Investment Group to acquire Grange Tower for $180 million through a collective sale. It will be Citadel's first property investment in Singapore.
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Chip Eng Seng's property arm CEL Development is taking a minority stake of 25 per cent in the joint venture, with Citadel Equity Fund holding the majority 75 per cent.
But the Chip Eng Seng group will be pretty much running the show as the joint venture redevelops the site into a 36-storey condo slated for launch in the second half of next year.
CEL will provide services relating to the day-to-day operations and business of the joint venture company, as well as project management and marketing. The joint venture company will also engage Chip Seng Contractors (1988), another wholly owned unit of Chip Eng Seng, as main contractor to design and build the project.
CB Richard Ellis (CBRE), which brokered the deal, says the $180 million price achieved for the 53,257 sq ft freehold Grange Tower site reflects a unit land cost of $1,207 per square foot (psf) of potential gross floor area. No development charge is payable.
If the CEL-Citadel JV buys an adjoining strip of state land of 1,623 sq ft, the unit land price will fall to $1,182 psf per plot ratio (psf ppr). And if the JV taps a bonus 10 per cent gross floor area allowed for balcony space, the unit land price will be reduced further to $1,075 psf ppr.
Because of Grange Tower's high development baseline - which reflects a 3.7 plot ratio, or ratio of potential gross floor area to land area - no development charge is payable for the site, even including the additional 10 per cent gross floor area for balconies.
Analysts reckon the breakeven cost for a new condo could be around $1,450 psf.
The headline unit land price of $1,200 psf ppr achieved for Grange Tower appears to be a new benchmark for the area, compared with $872 psf ppr achieved earlier this year for Furama Tower in Leonie Hill Road and $880 psf ppr for Hilton Towers at Leonie Hill.
However, CBRE executive director Jeremy Lake says more appropriate comparisons for Grange Tower are Lucky Tower further down Grange Road and Beverly Mai in Tomlinson Road, which fetched $1,134 psf ppr and $1,184 psf ppr respectively this year.
Owners of units in developments around Grange Tower - including Futura, Grangeford Apartment and Grange Heights - have been eyeing the outcome of the latest deal for an indication of what they could get for their properties. But last month, these owners were disappointed when news broke that the tender for the nearby Horizon Towers at Leonie Hill failed to find a buyer when it closed.
The purchase of Grange Tower will be subject to approval from the Strata Titles Board because unanimous approval from the owners has yet to be secured.
Owners of Grange Tower's existing 80 units will receive between $1.8 million and $3.7 million per unit - at least 80 per cent more than what their units would have fetched if sold individually.
Citadel Investment Group was founded in 1990 by Ken Griffin, who was then just 22 years old. It has offices in Hong Kong, Chicago, New York, San Francisco, Tokyo and London.
Since 1998, it has generated more than US$6 billion in net profits and currently deploys about US$12 billion of investment capital around the world.
By KALPANA RASHIWALA
Haig Gardens sold at 12% below target price
Property
Published September 12, 2006
Haig Gardens sold at 12% below target price
But owners of Futura confident of getting $295m in en bloc sale
By ARTHUR SIM
HAIG Gardens in Katong has been sold for $44 million, 12 per cent below the original asking price of $50 million, but owners of Futura at Leonie Hill remain confident of getting $295 million for their collective sale offering.
Tang Wei Leng, director (Investment Advisory Services) at DTZ Debenham Tie Leung, which is the marketing agent for Futura, said: 'It has a good configuration and given its excellent location, it is highly suitable for either a luxurious residential development or serviced apartment.'
The asking price for Futura, a freehold site, is based on the recent benchmark price set by nearby Grange Tower which transacted last week at $180 million or $1,207 psf per plot ratio.
The Grange Tower price was slightly less than the original asking price of $188 million.
The collective sale of nearby Horizon Tower was withdrawn last month after the public tender failed to draw bids close to the asking price of $500 million, suggesting that 'en bloc fever' might be cooling or, as Ms Tang noted, possibly because of its 99-year leasehold status.
Another 99-year leasehold residential development in the neighbourhood, Grangeford Apartment, is expected to be put on the collective sale market soon at an asking price topping that of Horizon Tower. According to caveats lodged, the latest price for an apartment was $1.4 million or $798 psf for a 1,700 sq ft apartment on a high floor.
There are 69 units and three penthouses at Futura. The last transacted price for an apartment there was $2.28 million. Ms Tang says owners can expect a gain of up to 70 per cent through a collective sale.
The 87,034 sq ft site has a plot ratio of 2.8 and a maximum gross floor area of 243,695 sq ft. No development charge is payable and up to 137 units, 1,600 sq ft in size, can be built.
The breakeven cost for a new development is about $1,650 psf.
Grange Tower was bought by construction company Chip Eng Seng Corporation's property arm CEL Development, so there could be an upside from aligned operations.
Similarly in Katong, Straits Construction's property arm Hoi Hup has emerged as the buyer of Haig Gardens.
Tan Hong Boon, executive director at Credo Real Estate, which is the marketing agent for the 54-unit development, said the sale was done through a private-treaty deal after the owners' asking price was not realised at a public tender. The owners received a premium of between 35 and 40 per cent on market prices for their units.
The District 15 site is 53,093 sq ft and has a plot ratio of 2.8. It may be redeveloped into an 18-storey condominium with a potential gross floor area of about 148,660 sq ft with 118 units of 1,200 sq ft.
Including an estimated development charge of $10.3 million for the intensification of the site, the sale price comes to $365 psf per plot ratio and the breakeven price is about $620 psf.
Re: En-Bloc Achieved (as reported in the media)
Singapore
Published September 18, 2006
Far East splurges $145.5m on 3 sites
Apartment owners in the 3 freehold plots will get $1.3-5 million per unit
By KALPANA RASHIWALA
PROPERTY giant Far East Organization continues its landbanking spree. It has clinched three adjoining freehold plots at Keng Chin Road, just off Bukit Timah Road, for $145.5 million. This brings Far East's total land shopping bill this year to almost $1.4 billion.
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Landbanking spree: Far East can redevelop the adjoining sites where Century Ville, Le Marque and Villa Margaux sit at Keng Chin Rd, just off Bukit Timah Rd, into a new condo with about 160 units averaging 1,500 sq ft
The $145.5 million that Far East is paying for Century Ville, Le Marque and Villa Margaux works out to a unit land price of $665 per square foot of potential gross floor area inclusive of an estimated $17.7 million development charge (DC) based on Sept 1, 2006, DC rates.
Newman & Goh brokered the sale through a private treaty deal.
The three adjoining sites have a combined freehold land area of 116,861 sq ft.
The sites are zoned for residential use with a 2.1 plot ratio (ratio of maximum potential gross floor area to land area) and 24-storey maximum height.
Far East can redevelop the site into a new condo with about 160 units averaging 1,500 sq ft.
Property market watchers estimates the breakeven cost for a new condo could be about $1,000 to $1,100 psf. Newman & Goh head of investment sales Jeffrey Goh said the tender for the three sites drew three 'expressions of serious interest' when it closed on August 23. Far East was not among them but negotiated the deal on a private treaty basis.
Owners of the existing 84 apartments in the three developments will receive sums ranging from $1.3 million to $5 million per unit. These amounts are about 20 to 70 per cent higher than what the units would have fetched had they been sold individually, Mr Goh said. This is at least the eighth major property acquisition made this year by Far East, which is the private arm of Ng Teng Fong and family.
Last month, it signed a conditional deal to purchase the freehold Rose Garden in the Katong area for $169.8 million, or $423 psf per plot ratio. Its earlier property buys this year include Amberville in Katong, the former Glutton's Square site on Orchard Road, Angullia Mansion and Skyline Angullia both at Angullia Park, Pacific Court at Pasir Panjang Hill and Waterfront View in Bedok (this was a joint acquisition with Frasers Centrepoint).
Re: En-Bloc Achieved (as reported in the media)
Top Print Edition Stories
Published September 22, 2006
Pontiac Land Group buys Pin Tjoe Court for $201m
Its bid of $1,358 psf ppr including DC sets new record for residential land
By KALPANA RASHIWALA
(SINGAPORE) In its first residential land acquisition here in at least a decade, Pontiac Land Group has bought the freehold Pin Tjoe Court at Ardmore Park through a collective sale for $201 million or $1,358 per square foot of potential gross floor area.
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The Pin Tjoe Court sale clears the way for that of Ardmore Point next door and market watchers say Pontiac is a prime candidate.
The latter price includes an estimated $28 million development charge (DC) based on the latest Sept 1, 2006 DC rates and sets a new record for residential land in Singapore, toppling the $1,228 psf per plot ratio set for Habitat One, across the road, in July. Pontiac Land was the highest of three bidders for Pin Tjoe Court when the tender for the 60,224 sq ft site closed on Wednesday, said CB Richard Ellis (CBRE) executive director Jeremy Lake, whose firm brokered the deal. He declined to identify the other bidders. Sources suggest SC Global Developments was among them. The second-highest bid is understood to have been about $4-5 million below Pontiac's winning bid.
The sale of Pin Tjoe Court should clear the way for that of Ardmore Point next door. This is also being marketed by CBRE, through a tender that closed on Aug 8. Market watchers believe Pontiac itself could be a prime candidate to buy the freehold Ardmore Point, as the combined land area of 120,757 sq ft could yield a more substantial project of about 165 units averaging 2,000 sq ft in a prime location.
Both sites are zoned for residential use with a 2.8 plot ratio - the ratio of potential maximum gross floor area to land area - and a 36-storey height limit. 'We will study it (the Ardmore Point site),' a spokesman for Pontiac Land Group told BT yesterday.
The Pontiac name is synonymous with aesthetic developments designed by renowned architects - for instance, The Colonnade in Grange Road and the Millenia Singapore development. The Pontiac spokesman said the plan for the Pin Tjoe Court site is to create a 'premium development', adding: 'We believe the prime location, together with an innovative architecture and interior, will generate a good return on the investment.'
While the group is yet to determine the configuration of the project, 'the concept is to create a luxurious condominium for the new generation of premium buyers'.
Pontiac estimates the breakeven cost for the project to be around $1,700-1,750 psf. Some market watchers suggest the figure may be higher, at $1,800 psf or more, but Pontiac should still be able to make a profit given the buoyant luxury residential market.
'With the stronger outlook on the economy, we believe there is a sustainable interest in residential properties, especially in the prime area,' the Pontiac spokesman said.
Market watchers say the Pin Tjoe site on its own can be redeveloped into a new 36-storey condo with slightly over 80 units averaging 2,000 sq ft.
Pontiac is expected to sell some of the new apartments and keep the rest for investment. 'In addition to our hotels, commercial and retail properties, the group has a portfolio of residential properties with a gross area of 500,000 sq ft,' the spokesman said. 'The Ardmore Park property will be a good addition to the portfolio.'
The group has retained all the apartments in The Colonnade and some units at Villa Delle Rose in the Holland Road area, which it developed jointly with Keck Seng.
After Pin Tjoe Court and Habitat One, the next highest prices fetched for residential land this year were for the collective sales of Eng Lok Mansion in Napier Road ($1,218 psf ppr) and Grange Tower in Grange Road ($1,207 psf ppr). Three of the four deals - the exception is Habitat One - were brokered by CBRE.
The existing Pin Tjoe Court comprises 32 apartments and two penthouses. The apartment owners will receive $5.5 million per unit and the penthouse owners $11 million per unit. These sums are about 75 per cent more than the units could fetch had they been sold individually.
Re: En-Bloc Achieved (as reported in the media)
Sim Lian buys Olivio site
26 Sep 06
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MAINBOARD-LISTED Sim Lian group has acquired a residential development in Surrey Road for $29 million, or $750 per square foot per plot ratio (psf ppr). No development charge is payable.
The four-year-old project, called Olivio, has a land area of 13,808 sq ft and is next to a site that Sim Lian bought last year. Olivio, made up of 33 apartments, was sold by private treaty through marketing agent Newman & Goh.
The agent's press release said that by combining the two sites, Sim Lian will have a much larger plot of 51,002 sq ft with a plot ratio of 2.8. This site can accommodate about 95 condominium units of about 1,500 sq ft each.
Separately, Sim Lian said yesterday it has so far sold 50 per cent of its latest condominium project, Bleu at East Coast. The 62-unit project was launched at the weekend at an average of $593 per sq ft. Sim Lian is offering a deferred payment scheme under which the first 5 per cent of the deposit is payable on booking and the second 5 per cent within eight weeks of booking. The next 10 per cent is payable in December 2007, along with other progress payments due.
Tong Eng bags 2 sites for $2.5m at auction
Property
Published September 28, 2006
Tong Eng bags 2 sites for $2.5m at auction
FEATURE Land, a member of the Tong Eng Group, yesterday snapped up two adjoining freehold sites in Sixth Avenue for $2.5 million at a Colliers International auction where three other properties - including a freehold walk-up maisonette at Tanglin Hill Condominium that fetched $2.5 million - were also sold.
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Tanglin Hill Condo: A foreign bidder clinched a maisonette here for $2.5m
The 7,565 sq ft site bought by Feature Land was put up for auction by the Inland Revenue Authority of Singapore (IRAS) to recover unpaid property taxes.
And IRAS said yesterday it may put another two lots of property on the auction block later this year for the same reason.
One is a pre-war terrace house at 27 Onan Road, for which IRAS has been owed $12,832 in property tax since 1997.
The other comprises two pre-war houses at 19 and 21 Emerald Hill, for which the taxman is owed $25,212 in tax for the period July 2002 to December 2006.
In both cases, IRAS has not been paid tax despite numerous attempts to collect it.
On the Sixth Avenue site, Feature Land plans to build a pair of semi-detached houses it hopes to sell for about $2.5 million to $2.6 million each.
The property was sold after six bids.
But the most hotly-contested property at yesterday's auction was a walk-up maisonette at Tanglin Hill Condominium at 11A Tanglin Rise.
Bidding started at $1.7 million and raced up before the property was knocked down at $2.5 million. The unit attracted 16 bids in total and was picked up by a foreigner.
BT understands that a similar unit in the development changed hands for $1.665 million in March this year.
'In fact, similar-size units in the development were going for around $2.38 million in 1995, so the price for the latest deal has surpassed prices during the market peak,' a source told BT.
On selling or auctioning properties to recover outstanding tax, an IRAS spokeswoman stressed yesterday that the authority only does this as a last resort.
The same applies to property tax on HDB flats, although these make up a very small part of total property tax collections.
'We issue reminders, notices to pay, make phone calls and appoint banks as agents to try to recover the taxes due,' the spokeswoman said in a statement.
'We even visit the owners with the objective of helping them settle their taxes. It is only when all such attempts fail to get the taxes settled that we would resort to recovering outstanding property tax through the sale/auction of property.'
IRAS said total property tax arrears have hovered around 5 per cent of the total property tax collection and 0.4 per cent of total collections of all tax types for the past few years.
'The tax arrears attributable to HDB cases are not large since HDB property tax accounts for about 3.4 per cent of the property tax assessed,' it said.
Re: En-Bloc Achieved (as reported in the media)
Singapore Companies
Published September 29, 2006
CapitaLand buys Cairnhill en bloc site for $161m
By ARTHUR SIM
CAPITALAND will buy Silver Tower in Cairnhill for $161 million, its second collective en bloc sale site in about a year.
Including an estimated development charge of $16.5 million, the price works out to $1,107 psf per plot ratio (ppr). Recent transactions in the same district include Orange Grove Condominium at $970 psf ppr and Grange Tower at $1,207 psf ppr.
In October 2005, CapitaLand bought Dragon View Park in River Valley for $128 million.
Patricia Chia, CEO of CapitaLand Residential Singapore, said that the company intends to build a 20-storey condominium with some 100 units.
CapitaLand's other prime developments like the Botanic on Lloyd, Tanglin Residences, The Imperial and The Loft are all fully sold, she said.
For its latest development, the 73-unit Scotts HighPark, 13 units have been sold so far at an average price of $1,800 psf.
The Silver Tower deal was brokered by Savills Singapore. Its director of investment sales, Steven Ming, said that owners of the 38 units in the building stand to receive an average premium of 70 per cent above current market prices.
'Strong interest for the site was received from both local and foreign developers,' he said.
The initial price objective set by the owners of $168 million is also close to the transacted price.
The breakeven price is expected to be between $1,600 and $1,700 psf. Currently, new developments in Cairnhill include Cairnhill Crest, The Light @ Cairnhill and The Edge @ Cairnhill.
Cairnhill Crest has even reportedly achieved prices of $2,000 psf.
There are likely to be more old apartments put on the market. Mr Ming believes that there could be five projects in the Cairnhill/Emerald Hill area that are at various stages of en bloc sale readiness.