Monday, September 18, 2006
[RealEdge] BT : Far East splurges $145.5m on 3 sites
| Published September 18, 2006  | |||
| Far East splurges $145.5m on 3 sites Apartment owners in the 3 freehold plots will get $1.3-5 million per unit
By KALPANA RASHIWALA
PROPERTY giant Far East Organization continues its landbanking spree. It has clinched three adjoining freehold plots at Keng Chin Road, just off Bukit Timah Road, for $145.5 million. This brings Far East's total land shopping bill this year to almost $1.4 billion.
The $145.5 million that Far East is paying for Century Ville, Le Marque and Villa Margaux works out to a unit land price of $665 per square foot of potential gross floor area inclusive of an estimated $17.7 million development charge (DC) based on Sept 1, 2006, DC rates. Newman & Goh brokered the sale through a private treaty deal. The three adjoining sites have a combined freehold land area of 116,861 sq ft. The sites are zoned for residential use with a 2.1 plot ratio (ratio of maximum potential gross floor area to land area) and 24-storey maximum height. Far East can redevelop the site into a new condo with about 160 units averaging 1,500 sq ft. Property market watchers estimates the breakeven cost for a new condo could be about $1,000 to $1,100 psf. Newman & Goh head of investment sales Jeffrey Goh said the tender for the three sites drew three 'expressions of serious interest' when it closed on August 23. Far East was not among them but negotiated the deal on a private treaty basis. Owners of the existing 84 apartments in the three developments will receive sums ranging from $1.3 million to $5 million per unit. These amounts are about 20 to 70 per cent higher than what the units would have fetched had they been sold individually, Mr Goh said. This is at least the eighth major property acquisition made this year by Far East, which is the private arm of Ng Teng Fong and family. Last month, it signed a conditional deal to purchase the freehold Rose Garden in the Katong area for $169.8 million, or $423 psf per plot ratio. Its earlier property buys this year include Amberville in Katong, the former Glutton's Square site on Orchard Road, Angullia Mansion and Skyline Angullia both at Angullia Park, Pacific Court at Pasir Panjang Hill and Waterfront View in Bedok (this was a joint acquisition with Frasers Centrepoint) | |||
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