Cui Zhengfeng Kingsford Huray Development has won the collective sale of Normanton Park for a massive S$830.1 million dollars. Cui Zhengfeng, a former Chinese now Singapore citizen, put in a bid for the Normanton Park site and was the lucky winner.
With development potential, all eyes are on the development group to see how the site will be redeveloped.
Normanton Park Condo had a 99-year lease with 59 years remaining but the Kingsford development group snapped up the site without hesitation.
For S$830.1 million, it’s the biggest sale of its kind in recent years. This will be around S$969 PSF PPR which actually includes two payments which are to be made to the Singapore Government.
Kingsford had to pay differential and upgrade lease premiums since there were only 59 years left on the lease and even though these are added premiums, it hasn’t overstretched the developer.
The Normanton Park site is located near the Kent Ridge Park as well as the Science Park. With 660,999 sq ft it’s developers dream as there is a lot of potential here for residential units.
It’s possible for the developers to make at least a 10% profit if they managed to achieve a breakeven price of S$1,600 PSF. If this was the case, any new unit developed could be worth S$1,785 PSF or more.
Those prices are fairly decent and it’s not too often you see them either.
‘We have currently had several submissions for the Normanton Park site.’ Ian Loh, the head of the investment and capital marks for Knight Frank said but did not comment further.
Knight Frank was also the ones in charge of marketing the sale and tender for the collective sale ended on Thursday.
It was in 1977 when Normanton Park Condo was first built and its original purpose was for families of the military to reside in. Currently, there are thirteen residential blocks on Normanton Park and these blocks contain of total 488 units.
The apartments range from around 1,279 square foot and 1,550 so they are decent sized apartments. There is currently a GPR (gross plot ratio) of 2.1 from the Urban Redevelopment Authority Master Plan of 2014. It also states the area is a residential only use plot of land.
‘S$231.1 million is the estimated worth of the top-up upgraded premium for the extension to the 99-year lease.’ Knight Frank said. ‘There will also be an estimated S$283.4 million spent on the differential premium in order to make the necessary changes.
There is a maximum GFA (gross floor area) 1.39 million sq. ft. and developers want to redevelop to a 2.1 plot ratio which has added to the differential premium.’ Knight Frank also said.
The Anglo-Chinese Independent School is located near Normanton Park, as well as the National University of Singapore, Insead, and Singapore Polytechnic. There is also the Fairfield Methodist Primary and secondary schools close to the Normanton Park site.
These amenities really help to make the site more developer-friendly as it’s nicely situated within the local community. Being so close to the school districts will help new owners with families snap up properties should they go up for sale or to rent them.
The Sale’s committee for Normanton Park, chairman Sukhvinder S Chopra, said, ‘over the course of the tender, the sales committee have worked closely alongside agents who have been marketing the property as well as received several submissions.
We have also worked closely with lawyers and others who have helped smooth the way for the successful collective sale.’
The chairman also went onto saying, ‘every submission was looked over carefully and debated thoroughly so that the best buyer could be established.
We took the decision for Kingsford to be awarded the sale carefully and thoughtfully and it was in the end a unanimous decision.’
He also commented. ‘Even though the committee was only created at the end of July, (July 29th) we spent only a short time debating the sale, ten weeks to be exact.
The majority owners have supported us every step of the way and we thank them as this sale couldn’t have been accomplished without them.
Kingsford has been very busy in recent times too and not just with the Normanton Park site. A commercial site on Beach Road had been put up for a state tender a few weeks ago and Kingsford also made a bid of S$1.572 billion which was unfortunately beat by GuocoLand Group.
The GuocoLand Group offered S$1.622 billion which results in S$1,706 PSF PPR (over 3% more than Kingsford). This shows just how active Kingsford are when it comes to the property market.
However, Kingsford have several developments within Singapore including the Kingsford Hillview Peak Project and the Kingsford Waterbay Riverfront Condo which is found Upper Serangoon.