River Valley Rd walk-up sold for $70.5m

[mr funny]

http://www.businesstimes.com.sg/sub/...91140,00.html?

Published June 28, 2011

River Valley Rd walk-up sold for $70.5m

This brings total value of the 32 enbloc deals sealed this year to $1.73b

By DICKSON LI


THE collective sales market has been picking up pace. Yesterday, a River Valley Road development added to the momentum. It also brought the total value of the 32 deals sealed so far this year, at $1.73 billion, close to equalling the value for the whole of last year.

Alliance Land Pte Ltd has clinched a River Valley Road walk-up apartment development for $70.5 million, or $1,139 per square foot per plot ratio.

The sale was brokered by Credo Real Estate,

The 40-unit development, situated at 402 to 414 River Valley Road, has a land area of 22,107 square feet.

The total gross floor area allowed is approximately 68,089 square feet, including 10 per cent gross floor area for balcony space.

With a tenure of 999,999 years with effect from 1962, the site is virtually freehold.

Under the 2008 Master Plan, the site is zoned for residential use with a plot ratio of 2.8.

A proposed new development built at a gross plot ratio of 3.08, balconies included, would be free of development charge as the development baseline is high.

In a news release yesterday, Credo said that the existing development, erected in the early 1960s, was one of the first generation of flats built in Singapore's post-colonial era.

With the successful collective sale, each of the owners will pocket gross sale proceeds of about $1.75 million to $1.77 million.

'The site is located within close proximity to Great World City and the Orchard Road shopping belt. It is suitable for a boutique development with small apartment units,' said Yong Choon Fah, executive director at Credo Real Estate.

The collective sales market is, however, nowhere near the high of 2007, when 87 sites worth $11.4 billion changed hands.

Karamjit Singh, managing director of Credo Real Estate, observed: 'The successful deals over the past 18 months . . . are relatively small with low absolute values and the buyers are mainly small to medium- sized developers who are unable to bid for the larger government residential sites.'

The sale is subject to the approval of the Strata Titles Board, if necessary.

[mr funny]

http://www.straitstimes.com/Money/St...ry_684745.html

Jun 28, 2011

River Valley walk-up flats seal collective sale

$70.5m deal brings total for first half to $1.73b, as market gathers pace

By Esther Teo, Property Reporter


The 40-unit block, one of the first residential projects in the 1960s, has a lease of 999,999 years. Each owner will get gross proceeds of $1.75 million to $1.77 million. -- PHOTO: CREDO REAL ESTATE

A WALK-UP apartment block in River Valley Road has sealed its collective sale, bringing the total value of en bloc deals for the first half of the year to $1.73 billion - just below last year's total.

Alliance Land paid $70.5 million, or $1,035 per sq ft (psf) per plot ratio (ppr), for the 40-unit project. This included a 10 per cent balcony allocation.

Each owner will get gross proceeds of $1.75 million to $1.77 million.

Marketing agent Credo Real Estate said yesterday that the 22,107 sq ft site can be redeveloped into 130 apartments of about 500 sq ft each. The block, one of the first residential projects in the 1960s, has a unique lease of 999,999 years.

The en bloc market has gathered pace from last year, when 36 deals worth $1.77 billion were sealed after a slow 2009. But the $1.73 billion so far is still low compared with the boom of 2007, when 87 sites worth $11.4 billion were transacted.

Credo managing director Karamjit Singh said the 32 deals completed in the first half of this year are relatively small, with low absolute values. The buyers have tended to be small to medium-sized developers unable to bid for larger government residential sites, he noted.

'In 2007, the top five deals were worth over half a billion dollars each. Over the last 18 months, each of the top five deals ranged from $137 million to $214 million only,' he said.

The average collective-sale deal this year is $54 million, up slightly from last year's $49 million. In 2007, the average deal size was $131 million.

Credo said the past 18 months have been challenging for larger collective-sale sites, as potential buyers have been daunted by high absolute land values.

The aggressive government residential land sales programme has also diverted interest from collective-sale sites, especially the larger ones.

The new market reality has dawned on the owners of these bigger estates and some have begun readjusting their reserve prices, Credo added.

Pine Grove, Pearl Bank Apartments, Laguna Park, Hawaii Tower and Tulip Garden have all launched en bloc attempts priced at more than $500 million.

Tulip Garden in Farrer Road initially priced its sale at $650 million, but recently relaunched it at $600 million.

New collective-sale sites have continued to stream into the market.

Royalville in Bukit Timah Road expects bids of between $370 million and $400 million, or $1,383 psf ppr to $1,495 psf ppr. The break-even cost is expected to be above $1,900 psf, Credo said.

St Patrick's Garden off East Coast Road is on the market at an indicative price of $188 million, or $888 psf ppr. Owners expect to receive between $1.55 million and $2.1 million each, said marketing agent Savills. The break-even price is estimated at about $1,440 psf.

Mr Singh said the outlook for the market for the rest of this year is positive. 'With owners becoming more realistic on reserve prices and sustained interest from developers, we expect deals in the second half to be at similarly healthy levels.'

[email protected]

[smallant]

Hmm... Any one have updates of Laguna Pak enbloc ? supposed to be done 1H JUL ?

[DC33_2008]

Do you think it will go through?

Hmm... Any one have updates of Laguna Pak enbloc ? supposed to be done 1H JUL ?