In a major breakthrough Grange Heights condo which has been involved in a 40-year-old dispute with its neighbouring development over 883 sq m right to way land strip is all geared up for collective sale.
Rustom Ghadiali, Chairman of its Management Committee stated that they have already collected 80% consent from the owners for collective sale of the freehold property during a meeting that was convened last Tuesday.
There are 120 apartment units spread across three blocks in the estate which is located in Grange Road area and is one of the most sought-after residential in Singapore.
The Prime Freehold property is within Orchard road most popular entertainment shopping area and short drive to Clark Quay, Marina Bay and Central Business District. The site is also near to the Somerset MRT station.
Mr Ghadiali said that Colliers International has been hired as the marketing agents for the sale and their representative was present at the meeting along with a legal representative from Rajah & Tann.
According to the 83-year-old chairman, the apartments are getting old and most of the residents have also aged and hence would prefer to move to single-storied flats where there is no need to take a flight of stairs.
It needs to be mentioned that Mr Ghadiali has been at the forefront of all the lawsuits that the residents of Grange Heights have fought over the years including the one against Lee Tat Development their neighbour over a strip of land that would allow them to access Orchard Road.
In 2008, the residents were defined access to the Orchard Road through Grange Road and in a recent ruling the Apex Court brought an end to this litigation that was centred on claims of compensation.
A representative of Colliers International said that they have prepared the groundwork for the en bloc sale process and further details about the collective sale would be provided once the property is launched for sale via a process of tender.
The current estate occupies 136,000 sq ft of land and has plot ratio of 2.8. A freehold development it has a maximum potential of 382,700 sq ft GFA over which 36-storied new condominium can come up.
Realty watchers in Singapore feel that Grange Heights could join the billion-dollar club due to its prime location.
They cited the example of Horizon Towers, a 99-year leasehold development that has already been launched for en bloc sale for $1.1 billion reserve price and the tendering process for this property ends next month.
It may be recalled that Grange Heights had attempted collective sale back in 2007 but at the last minute some of the residents had pulled out of the deal which brought down the consenting residents below the requisite 80%.
But Mr Ghadiali is confident that there would be no such pull-outs this time. He cited change in rule which prevents residents from withdrawing from a collective sale after the mandatory 5-day cooling period is over which they have already completed.
Ku Swee Yong, seasoned property analyst believes that Grange Heights’ en bloc sale could still face hiccups given the recent new cooling measures that were announced which have upset the mood in the market.
But he also added that this shouldn’t discourage developers given the prime location of the property and its location in the vicinity of Orchard Road area.
If the buyer and the sellers are able to manage their expectations well, there can be a positive outcome from this en bloc sale.