Tuesday, September 12, 2006
[RealEdge] BT : Haig Gardens sold at 12% below target price
| Published September 12, 2006  | |
| Haig Gardens sold at 12% below target price But owners of Futura confident of getting $295m in en bloc sale
By ARTHUR SIM
HAIG Gardens in Katong has been sold for $44 million, 12 per cent below the original asking price of $50 million, but owners of Futura at Leonie Hill remain confident of getting $295 million for their collective sale offering. Tang Wei Leng, director (Investment Advisory Services) at DTZ Debenham Tie Leung, which is the marketing agent for Futura, said: 'It has a good configuration and given its excellent location, it is highly suitable for either a luxurious residential development or serviced apartment.' The asking price for Futura, a freehold site, is based on the recent benchmark price set by nearby Grange Tower which transacted last week at $180 million or $1,207 psf per plot ratio. The Grange Tower price was slightly less than the original asking price of $188 million. The collective sale of nearby Horizon Tower was withdrawn last month after the public tender failed to draw bids close to the asking price of $500 million, suggesting that 'en bloc fever' might be cooling or, as Ms Tang noted, possibly because of its 99-year leasehold status. Another 99-year leasehold residential development in the neighbourhood, Grangeford Apartment, is expected to be put on the collective sale market soon at an asking price topping that of Horizon Tower. According to caveats lodged, the latest price for an apartment was $1.4 million or $798 psf for a 1,700 sq ft apartment on a high floor. There are 69 units and three penthouses at Futura. The last transacted price for an apartment there was $2.28 million. Ms Tang says owners can expect a gain of up to 70 per cent through a collective sale. The 87,034 sq ft site has a plot ratio of 2.8 and a maximum gross floor area of 243,695 sq ft. No development charge is payable and up to 137 units, 1,600 sq ft in size, can be built. The breakeven cost for a new development is about $1,650 psf. Grange Tower was bought by construction company Chip Eng Seng Corporation' Similarly in Katong, Straits Construction' Tan Hong Boon, executive director at Credo Real Estate, which is the marketing agent for the 54-unit development, said the sale was done through a private-treaty deal after the owners' asking price was not realised at a public tender. The owners received a premium of between 35 and 40 per cent on market prices for their units. The District 15 site is 53,093 sq ft and has a plot ratio of 2.8. It may be redeveloped into an 18-storey condominium with a potential gross floor area of about 148,660 sq ft with 118 units of 1,200 sq ft. Including an estimated development charge of $10.3 million for the intensification of the site, the sale price comes to $365 psf per plot ratio and the breakeven price is about $620 psf. |
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