Most Probably Will be the Highest Collective Sale in 2019, if Mandarin Gardens fail to launch
Braddell View estate will be put up for en bloc sale at $2.08 billion reserve price through public tender on March 27, 2019, announced Colliers International on Tuesday.
The residential owners will be having between $2 million and $4 million each depending on the property size if the sale successful, further announced the marketing agent.
Around 80% of the owners of the development agreed upon selling the property.
Base on the reserve price, the land rate decided to be $1,199 per square foot per plot ratio. The price includes the amount to freshen the lease to 99 years at $795.1 million and the differential premium to intensify land use.
Braddell View has an area of 1.14 million sq. ft. which makes it one of the biggest private residential sites in Singapore.
The development has lease tenure of 102 years initiated on February 1, 1978; thus, now 61 years of leasehold remains to date.
There are two distinct land portions at the redevelopment area of the site of around 524,055 sq. ft. and around 618,221 sq. ft.
Among Singapore’s 18 (HUDC) estates, the site in the Braddell Hill is the largest having two commercial and 918 residential units.
At Braddell View, residential unit sizes vary between 1,453 sq. ft. and 3,369 sq. ft. and it consists of 16 penthouses, 78 maisonettes, and 824 apartments.
The owners of the units probably get between $2.04m and $4.03m each on the efficacious sale of the property.
On the other hand, commercial shops’ possessors are expected to get between $529,500 and $1.2 million for 194 sq. ft. and 517 sq. ft. of property respectively.
Colliers International’s managing director, Tang Wei Leng, declares Braddell view to be the “sizable development” which will attract a great number of developers and they will perform detailed due diligence on the property.
She proceeds by saying that they will provide all the necessary details to the potential buyers to evaluate the benefits of the site which will diminish the risks and reduce the level of any doubts.
The managing director of Colliers additionally told that they would be gaining more information from the authorities on traffic impact study. Also, there’s a chance of selling the property as ‘two separate plots.
According to Alex Teo, gaining the confidence of 80 per cent of the owners is the major milestone in bringing the project forward for collective sale.
Moreover, the collective sale committee’s chairman of the property revealed that signing process had been started a year before considering that it wouldn’t be an easy job as there are so many owners of the estate.
He praised the owners to be open-minded and committed in the whole signing process. Teo says that the owners have recognized that the development is getting old and requires reconstruction.
According to URA Master Plan 2014, Braddell View site is only zone for the “residential use” with a Gross Plot Ratio of 2.1. There is a proposed to expand the total gross floor area to around 2.4 million sq. ft.
Braddell View is the last Housing and Urban Development Company estate to gain the private status. The property was completed somewhere in 1981.
The residential site was privatised in March 2017, and with which it is known that privatisation programme for HUDC estates of the government came to an end.
According to Colliers International, if the authorities approved, there will be around 2,620 new residential units to be developed on the site with the estimated size of around 915 sq. ft.
The collective sale tender of Braddell View will close at 3 p.m. on May 28, 2019.