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Thread: Koh Brothers' $163m tops bids for Flora Drive site

  1. #1
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    Default Koh Brothers' $163m tops bids for Flora Drive site

    http://www.businesstimes.com.sg/sub/...40740,00.html?

    Published October 20, 2011

    Koh Brothers' $163m tops bids for Flora Drive site

    Offer for 99-year residential land at $361 psf ppr; seven others outbid

    By UMA SHANKARI


    KOH Brothers Group beat out seven other bidders with its top offer for a residential site at Flora Drive, in the Upper Changi area, at the close of the state tender yesterday.

    The company offered $163 million or $361 per square foot per plot ratio (psf ppr) for the 99-year leasehold land parcel - in line with what analysts estimated that the site would fetch when it was launched in late August.

    Koh Brothers managing director Francis Koh said that if his company is awarded the site, it will build a residential project with 'green' and 'sporty' elements and around 400-410 apartments.

    The project could incorporate elements such as a running track and a rock climbing wall, he said.

    Koh Brothers' bid was 10 per cent above the second highest offer, which was from Hong Leong Group unit Tripartite Developers. Tripartite bid $147.6 million or $327 psf ppr.

    The two lowest bids came from EL Development and MCL Land. Both offered $130 million or $288 psf ppr.

    Mr Koh said his company is keen on the site due to its attractive location: 'It is in an established residential area, surrounded by many private housing projects.'

    Li Hiaw Ho, executive director of CBRE Research, likewise noted that the site at Flora Drive is adjacent to the Japanese Primary School and surrounded by several condominiums including Hedges Park, The Gale (both under construction), Ferraria Park, Edelweiss Park and Dhalia Park.

    'This location has a high expatriate tenant pool comprising Japanese and other nationalities working in Changi Business Park, Changi Industrial Park and Changi International Airport,' Mr Li said.

    Credo Real Estate executive director Ong Teck Hui said that the eight bids and top bid of $361 psf ppr show 'greater enthusiasm' than what was seen at the tender for the adjacent site, which closed in June this year.

    There were just four bidders for that site, which was sold for $325 psf ppr to Frasers Centrepoint. Frasers also participated in yesterday's tender, and its bid of $310 psf ppr came in fourth.

    'The positive response to (yesterday's) tender follows the encouraging September sales data announced on Monday, which could have influenced tender participation as well a pricing for the site,' Credo's Mr Ong said.

    'Some 1,631 private homes were sold by developers in September - a 21 per cent pick-up from August sales - suggesting firm underlying demand especially for mass market units. The bidders are obviously confident that demand can be sustained and would not be too dampened by the uncertain economic outlook.'

    CBRE said that within the neighbourhood, units in freehold The Gale and Ferraria Park were sold at $900-1,050 psf in August and September 2011. Units in the 99-year leasehold Hedges Park condominium have been marketed at $800-950 psf since April 2011; to date, about 65 per cent of the 501-unit project has been sold.

    Said Mr Li: 'It is likely that units in the new project will be priced at similar levels.'

  2. #2
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    http://www.straitstimes.com/Money/St...ry_725147.html

    $163m top bid in 8-way tussle for Upper Changi site

    Published on Oct 20, 2011


    A RESIDENTIAL plot at Flora Drive in Upper Changi has attracted a top bid of $163 million in a eight-way tussle that indicates renewed interest among developers for the right site.

    Koh Brothers' unit Realty Consortium topped with an offer of $361 per sq ft per plot ratio (psf ppr) for the 3ha parcel.

    That beat estimates of between $300 and $350 psf ppr when the 99-year leasehold site was launched in August and was 11 per cent over the price of an adjacent site sold in June that drew only four bids.

    Hong Leong Group's unit Tripartite Developers was second with $147.6 million or $327 psf ppr, edging out Qingjian Realty's $147.58 million.

    EL Development and MCL Land both put in the lowest bid of $130 million - 20 per cent below the top bid.

    Experts say the level of interest and bids show that developers are getting a taste for residential sites again.

    CB Richard Ellis Research executive director Li Hiaw Ho noted that the site is near the Changi Business Park, Changi Industrial Park and the airport, all with a high number of expatriate workers.

    The upcoming Singapore University of Technology and Design is only a few minutes' drive away, he said.

    Mr Li expects the break-even cost to range from $680 psf to $700 psf.

    Units at the nearby 501-unit Hedges Park condominium, launched in April, have sold for between $800 and $950 psf, he said. About 65 per cent of the project has been sold and Mr Li expects the new project to be priced similarly.

    Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy, noted that the positive response to the site follows encouraging data on new private home sales in September that could have piqued developers' interest.

    Developers sold 1,631 private homes last month, 21 per cent up on August.

    '(This) suggests firm underlying demand especially for mass market units. The bidders are obviously confident that demand can be sustained and would not be too dampened by the uncertain economic outlook,' Mr Ong added.

    ESTHER TEO

  3. #3
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    361psf ppr for flora drive is not cheap.

  4. #4
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    Bidding prices seems to be sustaining.

    Healthy for consolidation instead of correction.

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