Albracca condo situated along the east coast was on May, 2017 scooped by Sustained Land in a collective sale at the price of S$69.1 million.
This amount was more than the owners of Albracca anticipated, as they had asked for an amount between S$62m – S$65m.
This is the first time the apartment owners have tried to sell en bloc. This information was provided by JLL, the marketing agent who handled the sales deal.
The attempt to sell the Albracca condo is in line with the new collective sales wave that has picked up momentum in the recent past, with four en bloc sales deals worth around S$1.5 billion having been sealed in May 2017.
That sales yield surpasses the entire collective sales yield for 2016.
The Albracca condominium, a freehold property situated at 1 Meyer Place, is 10 storeys high, and it is residential.
According to Douglas Ong, the Sustained Land director, the company plans on developing an apartment comprising 65 units, being the maximum possible number when the unit size is 753.5 sq ft on average.
In any case, it will be possible to increase the gross plot ratio from the current 2.09 to 2.1.
Mr. Ong notes that the project to be undertaken on the Albracca site is not big, but it will keep the company busy. Nevertheless, it is not the only project that Sustained Land has in the pipeline.
It also has Sturdee Residences, which are close to the Farrer Park MRT, Poiz Residences, which are situated at Potong Pasir, TRE Residences located in Geylang and which Sustained Land co-owns with MCC Land, as well as a 3 Cuscaden Walk building.
For the price at which the property was acquired, Karamjit Singh, JLL’s senior consultant, says the land rate reflected as S$1,409 psf ppr after factoring in a development charge of S$115,000.
He disclosed that there were more than a dozen developers interested in the Albracca site, and they ranged from small to big size firms.
He noted that some of them were developers, others contractors, and there was even a fund manager.
Not only is it close to the anticipated Katong Park Station set to be opened in 2023, but it also has a sea front and a clear view of the Katong Park.
The MRT station will be along the busy Thomson-East Coast Line.
According to Mr. Ong, his firm hopes to launch the redeveloped units at the Albracca site at between S$2,300 and S$2,500 psf.
The Albracca, a residential development of 11 units in Katong district, has prepared for an En Bloc sale with a minimum asking price S$62 million.
The estate has been put up for the collective sale for the first time- the marketing agent JLL declared on Tuesday (June 13, 2017).
Albracca Condo, a 10-storey freehold residential development located at Meyer Road (1 Meyer Palace) in Marine Parade, is a strata-titled development comes on the heels of other four collective sales this year.
This en bloc sale surpasses the deals of the last year’s S$1 billion with over S$1.5 billion.
A senior JLL consultant, Karamjit Singh expects that the en bloc sale started last year will be growing this year and mature it the next year. He predicts the bright futurity of en bloc sale to the ensuing years.
On the other hand, a number of ageing developments, missed out the collective sale during the last phase of 2010-2013, are now on the stage.
The hopeful news is that the sale committee of Albracca has been successful to win more than 80 per cent consent from the owners of it for the collective sale.
Under the Master Plan of 2014, the area of the estate is 23,400 sq ft having the allowable gross plot ratio of 2.1. The 11-storey building has the possibility to develop it to a high-rise apartment about 18 to 24 storey, which is the subject to the permission of technical height controlling department of the respective government.
Under the approval of Urban Redevelopment Authority (URA), a maximum of 49,130 sq ft allowable gross floor area may be designed over a 750 sq ft area where the count of apartments may be 65-said JLL. Here, the possibility of The Albracca is a step ahead.
Though the supply of residential land is limited, the attraction to the main source of the area has typically raised the demand of the estate for en bloc sale.
The appeal for the location is rising for the stepping distance of the Katong Park MRT station and the Thomson East Coast Line from the estate. The possibility of completion of the project is sometime in 2023.
On completion, Katong Park will be only of 5 stops away from Shenton way and Raffles Place. Apart from the plan, the residents may work in CBD by riding on cycle through the cycling track of the beach- declared Mr. Singh.
More and More En Bloc Site Being Sold
Being back to a few weeks, the en bloc deal of Eunosville sold for S$765.8 million while the Rio Casa in Hougang for S$575 million helps to bag more than a billion, and if the current deal of The Albracca is successful, it will surely cross S$1.5 billion this year.
The Urban Redevelopment Authority (URA) has been appealed for the confirmation of a prominent development charge (DC) payable for the redevelopment. If the development charge were not applicable, the prince range would be ranging from S$1,262 to S$1,323 psf ppr (per square foot per plot ratio).
Mr. Singh expects the site will be one of the main attractions among other sites to the pool of developers, and they will be eager to the project for the low price quantum and other prospects.
The Tender sale of The Albracca closes on July 20, 2017, at 2.30 pm.