Fragrance Props pays $39m for Siglap property

[mr funny]

http://www.businesstimes.com.sg/sub/...80643,00.html?

Published April 10, 2010

Fragrance Props pays $39m for Siglap property

Culford Gardens' en-bloc selling price at $632 psf per plot ratio

By FELDA CHAY


CULFORD Gardens in Siglap, which was put up for sale last month, has been sold to Fragrance Properties for $39 million, said Credo Real Estate, which handled the sale.

The amount falls along the higher end of the freehold property's asking price, which was between $37 million and $40 million, allowing the developer to break even at about $950-$1,000 psf. Credo said that the site received four offers, all of which fell within this price range.

The selling price translates to a land rate of about $632 per sq ft per plot ratio (psf ppr), based on a 1.4 plot ratio - ratio of maximum potential gross floor area to land area. This excludes the 10 per cent balcony allowance.

Including the balcony allowance, the sale price becomes $574 psf ppr at a gross plot ratio of 1.54. With the sale, the owners of the en-bloc site stand to receive an average price of $1.63 million for their property.

Culford Gardens, which sits on a 44,093 sq ft site in the Siglap/Upper East Coast vicinity, is zoned under Master Plan 2008 for residential development with a maximum height of five storeys and a 1.4 plot ratio. The District 15 site is close to amenities and food & beverage outlets in Siglap and East Coast Park.

[jlrx]

With the sale, the owners of the en-bloc site stand to receive an average price of $1.63 million for their property.

There are those who laugh at people who buy en bloc properties, and there are those who laugh all the way to the bank.

[urban]

There are those who laugh at people who buy en bloc properties, and there are those who laugh all the way to the bank.

They hold at least 6.5 years.

[mcmlxxvi]

They hold at least 6.5 years.

Make 1 mil in 6.5 years, I really don't mind... only average only 80k a year in a bull market.

[jlrx]

They hold at least 6.5 years.

Make 1 mil in 6.5 years, I really don't mind... only average only 80k a year in a bull market.

Firstly, an investment of around $600k to an eventual return of $1.6m in 6.5 years is a compounded annual return of 16%.

Secondly, en blocable properties represent one of the lowest risk, highest return "sure-win" investments available. Just do your calculations carefully. Then lock it up and practise PROPERTISM and hold.

It's something like the "Death Bond" insurance business - where people who need money sell their insurance policies to buyers at a discount to the eventual insurance payout when they finally die.

[urban]

Yea, i meant it is a superb return.