Wednesday, April 26, 2006
MCL Land buys Boon Teck Heights for $22.88m
MCL Land Ltd, through its wholly owned unit MCL Land Development, has bought the Boon Teck Heights property off Balestier Road for $22.88 million.
The en bloc purchase price for the freehold property was arrived at after taking into account various commercial factors including the development potential, location of the property and the recent transacted prices for properties in the vicinity, said MCL Land.
The $22.88 million price tag works out to be $300 per square foot (psf) of potential gross floor area inclusive of development charges for the freehold property, BT understands.
This is slightly lower than the $344 psf per plot ratio City Developments paid for a combined en bloc purchase of Lock Cho Apartment, Comfort Mansion and a four-storey walk-up apartment building earlier this month. The three adjoining properties are in nearby Thomson.
The collective sale of Boon Teck Heights was carried out through a private treaty brokered by DTZ Debenham Tie Leung.
The 27,368 sq ft site is zoned for residential use with a 2.8 plot ratio (ratio of potential gross floor area to land area). Analysts estimate that MCL Land's break-even costs for a new apartment project on the site could be about $550 psf.
Boon Teck Heights, a 19-storey apartment building, is more than 10 years old and is located along Boon Teck Road, close to the Toa Payoh town centre and MRT station.
In a statement yesterday, MCL Land said that its offer for the site has been accepted by the majority of subsidiary proprietors holding not less than 80 per cent of the share value of the property.
MCL Land also said that the acquisition and development of the property will be financed by internal funds and/or bank borrowings.
The transaction is not expected to have any material effect on the consolidated earnings and net tangible assets per share of MCL Land for the financial year ending Dec 31, 2006.
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// posted by Shajahan @ 2:49 PM 