Saturday, September 16, 2006
[RealEdge] BT : YTL's Sentosa buy seems relatively cheap
| Published September 16, 2006  | |
| YTL's Sentosa buy seems relatively cheap It clinches 132,689 sq ft site in Sentosa Cove for $50.2m
By KALPANA RASHIWALA
MALAYSIAN tycoon Francis Yeoh's YTL Corporation Bhd appears to have bought its maiden property development site in Singapore for a steal. It is paying $50.2 million or $378 per square foot of land area for a 132,689 sq ft site called the Lakefront Collection in Sentosa Cove. YTL plans to develop 12 iconic bungalows on the 99-year leasehold plot. The unit land price of $378 psf pales in comparison with the $656 psf to $1,039 psf fetched at last month's auction for a dozen plots in Sentosa Cove's Southern Residential Precinct. The plots that went under the hammer on Aug 25 were sold individually and boast a nicer location - most front the sea and have views of the Southern Islands. In comparison, the site that YTL has clinched is in the less choice Northern Residential Precinct of Sentosa Cove, with views in the distance of container terminals in Pulau Brani and Tanjong Pagar. 'The view of the container terminals is a big drawback for this cluster,' a property consultant familiar with Sentosa Cove said. 'Number two, Sentosa Cove Pte Ltd may have taken the approach that there may be some strategic advantage in selling the entire batch to a developer as opposed to having individual buyers developing their own bungalows without a consistent approach. So there would have to be a bulk discount. 'But it's questionable whether the discount has to be so big. Maybe, they would have done well to close bidding for this plot after the auction, since the auction plots have a superior location and offer more scope for attracting higher prices. And this could then have spilled over to the Lakefront Collection bids.' SCPL, the master developer of the upscale waterfront housing precinct, has been selling land parcels for development in the location since late 2003. The $50.2 million that YTL will pay for the Lakefront Collection works out to a land cost of about $4.2 million per bungalow. Inclusive of construction, fees, and interest costs, the breakeven cost could be $5.8 million to $6.5 million a bungalow, estimate market watchers. The expression of interest for the Lakefront Collection closed on Aug 7. An spokesman for SCPL declined to say how many bids were received, but confirmed the award was based both on creativity of design concept and price. While the Lakefront Collection bungalows will have the view of container terminals in the distance, the immediate view should be pleasant enough - of Serapong Pond and Serapong Golf Course. The Lakefront Collection bungalow plots, because they face a pond, will not have berths for boats unlike the waterway-facing bungalow lots sold earlier. Nonetheless, YTL can extend structures over the pond, which could be used for pavilions, gardens, jacuzzis or infinity pools. YTL Corp boss Francis Yeoh said in a statement yesterday that the latest acquisition provides the group with an opportunity to showcase the group's capability in creating iconic residential developments. Market watchers also note this is not YTL's first foray in the Singapore property market. Last month, its Singapore unit Yeoh Tiong Lay Construction (S) Pte bid unsuccessfully for a hotel site at Unity Street. YTL is expected to bid for more sites here. |
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
__,_._,___
