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Thread: Cavenagh Gardens up for en bloc sale

  1. #1
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    Default Cavenagh Gardens up for en bloc sale

    http://www.businesstimes.com.sg/arch...s-en-bloc-sale

    Published April 10, 2012

    Cavenagh Gardens up for en bloc sale

    By Michelle Tan


    Cavenagh Gardens: If its collective sale is successful, this would put an estimated $2.35 million to $2.96 million into the pocket of each unit owner - CAVENAGH GARDENS

    A STRETCH of 'old school' apartment blocks along Cavenagh Road may soon make way for a swankier development if its en bloc attempt goes through.

    Freehold District 9 site, Cavenagh Gardens has been put up for tender by PropNex Investment Sales Department with an indicative price range of $460 million to $480 million, which translates to about $1,708 to $1,782 per square foot per plot ratio (psf ppr) - excluding balcony allowance - based on a gross plot ratio of 2.1 times or $1,553 to $1,620 psf ppr should the balcony allowance be factored in.

    If the collective sale is successful, this would put an estimated $2.35 million to $2.96 million into the pocket of each unit owner.

    The zoned residential site has an approximate land area of 128,256 square feet, which can yield a potential gross floor area of 269,338 sq ft based on the existing plot ratio.

    However, with the possibilities of alienating adjoining parcels of state land, the total plot can be expanded to around 150,000 sq ft, yielding a gross floor area of 308,920 sq ft or more (if the development is granted the Green Mark GFA incentive or bonus balcony gross floor area).

    If approved, the expected market price for the en bloc sale would translate to around $1,533 to $1,598 psf ppr (excluding balcony allowance) or $1,394 to $1,453 psf ppr (with balcony allowance) or lower if other incentives (such as the Green Mark GFA incentive) are approved.

    Factoring in the impact of joining the existing parcel to surrounding state land, the estimated break-even costs for the development come in the range of $1,784 to $1,848 psf, with new units expected to hit the market at around $2,308 to $2,400 psf.

    Without the state land, the estimated brepak-even costs would be higher at around $1,962 to $2,040 psf, with asking prices of new units expected to stay the same.

    Said Charles Chua, head of PropNex Investment Sales Department: 'We are predicting that with the influx of foreign investors and the interest of high-end home buyers, this land site has a plethora of opportunities to be developed into high-end residences, serviced-apartments or SOHO apartments.'

    Located adjacent to the Istana, and well connected to the Orchard Road stretch via a pedestrian overhead bridge to Cuppage Road, the prime residential site - which comprises two 13-storey towers and one five-storey block - can potentially be redeveloped into 350 units of about 1,000 sq ft each.

    The tender was launched yesterday and will close on May 3.

  2. #2
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    Default Cavenagh Rd condo up for sale again

    http://www.straitstimes.com/Money/St...ry_787069.html

    Cavenagh Rd condo up for sale again

    Published on Apr 10, 2012

    By Lennard Ong


    A FREEHOLD condominium right next to the Istana is up for collective sale at an asking price nearly $200 million under the level the owners aimed for in 2007.

    Back then, the Cavenagh Gardens owners asked for $650 million but failed to get a buyer. They lowered it to $490 million and still struck out amid the financial crisis.

    They have again lowered their expectations, this time with an asking price of $460 million or $1,394 per sq ft for the 172-unit block in Cavenagh Road.

    That price would give owners between $2.35 million and $2.96 million each for their apartments.

    The estate's buyers could possibly acquire adjoining parcels of state land which would bring the total site to about 150,000 sq ft.

    The potential gross floor area could then reach 310,000 sq ft or more.

    Mr Charles Chua, head of investment sales at PropNex, the marketing agent, told The Straits Times yesterday that the improving economy and recent successful suburban collective deals have encouraged the Cavenagh Gardens owners.

    He said: 'We are predicting that with the influx of foreign investors and the interest of high-end home buyers, this land site has a plethora of opportunities to be developed into high-end residences, serviced apartments or Soho (small office and home office) apartments.'

    Mr Colin Tan, research head at Chesterton Suntec International, said: 'The main issue for launching such a big tender is whether developers can see and avoid more risks ahead. Currently there are more developers than sites available.'

    He added that given Cavenagh Gardens' prime location and price tag, developers could consider forming a joint venture in order to mitigate the risks.

    The consideration of a joint venture was also echoed by Mr Nicholas Mak, SLP International's head of research.

    He also noted that height restriction imposed on buildings around the Istana due to security reasons will be a limiting factor for developers.

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