Premier District 9 development HighPoint Condo has become the latest property to join the en bloc sale bandwagon. The Freehold site has been launched for S$550 million.
The prime property that covers an area of 47,606 sq ft, is located at the dead-end of the Mount Elizabeth Road.
It was finished in 1974 and as per Urban Redevelopment Authority’s 2014 Master Plan the side falls in the ‘residential’ zone and has maximum allowable height up to 36 storeys.
The current GFA is estimated to be 211,976 sq ft which translates into 4.45 plot ratio and the developer would have the choice of redeveloping it up to 213,383 sq ft without the need of paying any development charges.
As per the guide price of the property, the land rate for the sale has been arrived at S$2,595 psf ppr.
The buyer would also be able to exercise the option of using 7% balcony bonus and in doing so the effective land rate comes down to S$2,509 psf ppr.
CBRE the marketing agent of the sale estimated that a redeveloped property at the site would yield around 196 apartment units if the average size of the units is around 100 sq m. The existing property has 57 apartment units along with two penthouses.
The en bloc sale attempt has already received consent from more than 80% of the owners and they have signed the sale agreement.
Location is one of the major highlights of this freehold property as it is located in the close vicinity of Paragon and Mount Elizabeth Hospital as well as ION Orchard.
There are several schools short drive from the site including Anglo-Chinese Junior School and Chatsworth International School’s Orchard campus. The tender for the sale of this site shall close on 26th Feb at 3:00 PM.
CBRE’s Executive Director of Capital Markets, Galven Tan said that once redeveloped the potential property at this site would enjoy panoramic view along with amazing view of CBD’s skyline and Goodwood Hill’s greenery.
He further added that the property’s exclusive attributes should invite developers.
According to him to him there is demand in the premium segment which is still experiencing a shortfall. With interest in these properties is still good developers would love adding HighPoint Condo to their portfolio.
According to Mr Tan the site has already attracted great attention from some foreign developers who are based in Hong Kong and have plans to enter the Singaporean market.
He added that the group showed interest in the property as it has all the attributes to help them make a grand entry in Singapore with a premium product.
There are several other developments in District 9 that have been eying collective sale and this includes Leonie Gardens, a 99-year leasehold property that has been launched at S$800 million reserve price.
Another freehold development Cavenagh Gardens after its initial failed attempt is giving en bloc sale another tries and has been launched at S$480 million reserve price.
In related development Leonie Hill Road’s Horizon Towers which saw its collective sale tender close in September without attracting even a single bid has been launched again for reserve price of S$1.1 billion.
The reserve price is the same for which the site launched the tender in July last year. JLL: is handling this tender as the marketing agent.
Going by its S$1.1 billion reserve price the land rate arrived is S$1,977 psf ppr. This price is factored on S$228 million lease top-up premium payable and this price is expected to be S$1,797 psf ppr taking the 10% bonus GFA into account.
The developers won’t need to bear differential premium or development charges to intensify the use of 1.9 hectare site. Built in 1970s the site falls in a residential zone as per the Master Plan of 2014 and can be built up to thirty-six storeys.
The site offers access on Leonie Hill Road as well as Leonie Hill and merely 150 meters away from the Great World MRT station which is coming up.
There are other District 9 sites that were launched last year for collective sale but didn’t find any bidders. They include River Valley’s The Regalia and Elizabeth Tower which is located on Mount Elizabeth Road.
Tan Hong Boon, Executive Director of Capital Markets at JLL (Singapore) said that both HighPoint and Horizon Towers enjoy being prime sites.
He pointed out to the fact that Horizon Towers being bigger physically and offering room for a larger development will benefit the developer in terms of economies of scale.
On the other hand, HighPoint freehold land status should be a better attraction than Horizon Tower’s 99-year lease tenure.
He also expected some of the developers to show interest in both the sites.