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11-03-12, 19:01
http://www.straitstimes.com/Money/Story/STIStory_774616.html
Little-known firm makes top bid for Hillview site
Kingsford beats 6 rivals with $243m tender for Hillview Ave condo
Published on Mar 7, 2012
By Gan Yu Jia
A LITTLE-KNOWN company owned by three Chinese nationals has trumped six rival developers to lodge the highest bid for a high-rise condominium site in Hillview Avenue.
Kingsford Development tendered $243.2 million, or $638 per sq ft per plot ratio (psf ppr), for the 136,148 sq ft site - well ahead of the predicted range of $500 to $550 psf ppr.
The firm is owned by Cui Shaoyu, Cui Zhengfeng and Gao Xiuhua, but their personal details are not available.
Kingsford's bid was 18.6 per cent ahead of second-placed Flamegold, a unit of UOL Group that offered $205.1 million, or $538 psf ppr.
The margin between the top two bids is the biggest since February last year when the tender for the condominium site at Bishan Street 14 was concluded.
Industry watchers say the optimism behind the top bid could be based on the strong sales of The Hillier, a project that sold in the same area in April last year.
Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, said the offer 'seems to be benchmarked against The Hillier's land price of $673 psf ppr'.
However, he noted that The Hillier's price takes into account 'a 15 per cent commercial element' in contrast to the current site, which is purely residential.
The 99-year leasehold plot in Hillview Avenue can yield about 370 homes.
Mr Lee Sze Teck, senior manager for research and consultancy at DWG Group, noted that all the bids were lower than offers for The Hillier site, suggesting that developers are staying cautious.
Mr Nicholas Mak, head of research and consultancy at SLP International, expects the units to break even at about $1,010 to $1,060 psf, while DWG's Mr Lee and Mr Li Hiaw Ho, executive director of CB Richard Ellis, both estimate a range from $1,000 to $1,050 psf.
Mr Mak expects units in the new project to be priced above $1,200 psf, while Mr Lee places the figure between $1,200 and $1,250 psf, similar to those at The Hillier.
Experts also attribute the competitive bids to the accessibility of the Hillview area to nearby amenities and the Downtown MRT line.
Mr Li noted that buyers may be attracted to facilities available at Bukit Panjang and Bukit Batok HDB estates 'which are a short drive away', as well as the adjacent HillV2 shopping mall, to be completed around 2014.
The Hillview MRT station that will be completed in 2015 is also likely to be a major attraction, he said.
Mr Mak added that 'the area is quiet and peaceful', yet is near major centres like the West Mall.
'It also has quick access to Upper Bukit Timah Road and Bukit Timah Expressway,' he said.
However, he cautioned that potential buyers may be deterred by the 'poor accessibility by buses', since 'only SMRT buses would go past the area'. There are also few prestigious primary schools within a 2km radius of the site.
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Little-known firm makes top bid for Hillview site
Kingsford beats 6 rivals with $243m tender for Hillview Ave condo
Published on Mar 7, 2012
By Gan Yu Jia
A LITTLE-KNOWN company owned by three Chinese nationals has trumped six rival developers to lodge the highest bid for a high-rise condominium site in Hillview Avenue.
Kingsford Development tendered $243.2 million, or $638 per sq ft per plot ratio (psf ppr), for the 136,148 sq ft site - well ahead of the predicted range of $500 to $550 psf ppr.
The firm is owned by Cui Shaoyu, Cui Zhengfeng and Gao Xiuhua, but their personal details are not available.
Kingsford's bid was 18.6 per cent ahead of second-placed Flamegold, a unit of UOL Group that offered $205.1 million, or $538 psf ppr.
The margin between the top two bids is the biggest since February last year when the tender for the condominium site at Bishan Street 14 was concluded.
Industry watchers say the optimism behind the top bid could be based on the strong sales of The Hillier, a project that sold in the same area in April last year.
Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, said the offer 'seems to be benchmarked against The Hillier's land price of $673 psf ppr'.
However, he noted that The Hillier's price takes into account 'a 15 per cent commercial element' in contrast to the current site, which is purely residential.
The 99-year leasehold plot in Hillview Avenue can yield about 370 homes.
Mr Lee Sze Teck, senior manager for research and consultancy at DWG Group, noted that all the bids were lower than offers for The Hillier site, suggesting that developers are staying cautious.
Mr Nicholas Mak, head of research and consultancy at SLP International, expects the units to break even at about $1,010 to $1,060 psf, while DWG's Mr Lee and Mr Li Hiaw Ho, executive director of CB Richard Ellis, both estimate a range from $1,000 to $1,050 psf.
Mr Mak expects units in the new project to be priced above $1,200 psf, while Mr Lee places the figure between $1,200 and $1,250 psf, similar to those at The Hillier.
Experts also attribute the competitive bids to the accessibility of the Hillview area to nearby amenities and the Downtown MRT line.
Mr Li noted that buyers may be attracted to facilities available at Bukit Panjang and Bukit Batok HDB estates 'which are a short drive away', as well as the adjacent HillV2 shopping mall, to be completed around 2014.
The Hillview MRT station that will be completed in 2015 is also likely to be a major attraction, he said.
Mr Mak added that 'the area is quiet and peaceful', yet is near major centres like the West Mall.
'It also has quick access to Upper Bukit Timah Road and Bukit Timah Expressway,' he said.
However, he cautioned that potential buyers may be deterred by the 'poor accessibility by buses', since 'only SMRT buses would go past the area'. There are also few prestigious primary schools within a 2km radius of the site.
[email protected]