Gisborne Light, a freehold development which falls in District 10 launched its tender for en bloc sale starting September 13.
The owners have fixed a reserve price of $37 million. This translates closely to $1,671 psf ppr. Colliers International the marketing agent hired for the sale believes that the price for Gisborne Light is attractive and also fair.
It has been adjusted for the negative mood in the market since the new cooling measures were announced on July 6.
Gisborne Light neighbour, Crystal Tower taste great success in last year 2017 En Bloc Sale. The freehold property was acquired by Allgreen properties which bid for $1,840 psf ppr while the owners asking price was only $1,406 psf ppr.
While this year 2018, another Condo that taste huge success in District 10 was City Towers. The Freehold site was bought by famous Li Ka-shing’s Cheung Kong Empire and it happen that Colliers International, the same marketing agent of Gisborne Light brokered that deal.
So far Royalville which located at 833 Bukit Timah Road, still hold the highest record in District 10. It was sold en bloc to Allgreen properties at the land rate of $1,960 psf ppr. The launch price by the owners was only $1,509 psf ppr.
The collective sale Success stunned and shocked the entire real estate market in 2017. It was considered one of the Top bullish Bid in En Bloc History.
The freehold property has 17 apartment units and is located along Ewe Boon Road. It occupies an area of 13,841 square feet and as per the 2014 Master Plan from the Urban Redevelopment Authority it has been zoned for residential use.
The site has 1.6 gross plot ratio. Colliers’ spokesperson said that upon redevelopment into luxury boutique residential property this site could yield 27 units which shall have approximately 780 sq ft area each.
The freehold Condo is conveniently located near to Newton MRT station and Newton circus food centre. With nearest mall Balmoral Plaza also close to the site. All these amenities are just 10 mins walk away.
If the en bloc sale materializes, the owners of Gisborne Light shall pocket $1.7 million to $4.3 million each. So far 16 among the 17 owners in this development have signed the collective sale agreement.
It would be great if the last owner has signed. With 100% owners’ consent, the freehold site does not need STB approval once the buyer acquires it. The new developer can start its planning for the redevelopment and save a lot of time.
Tang Wei Leng Managing Director of Colliers said that developers are still interested in en bloc sales while accepting the fact that they are choosier about the sites they add to their kitty with the advent of the cooling measures.
In the same breath he added that Gisborne Light being a Prime District 10 property which is primly located makes it palatable when compared to other developments and expects to see many developers and investors drawn to this prime freehold property.
Gisborne Light’s en bloc sale tender shall close on the 11th of October at 3 PM.