Faber Garden is up for grabs after today’s launch (April 17) of its public collective tender. This tender, which is the owners’ second attempt at selling en bloc, is set to close on May 23, 2018 and they have set their price at S$1.18 billion.
The property was first put on the market in 2011, and the reserve price, which at the time was S$830 million, did not attract a buyer.
If the property finds a developer who meets the set price, it is going to set a record as the largest sale of 2018, beating Pacific Mansion that sold in March for an impressive S$980 million.
It is also going to become the 2nd biggest en bloc sale in Singapore has ever seen.
The Highest collective sale so far is d’Leedon, formerly Farrer Court, which fetched a whopping S$1.34 billion back in 2007.
The Faber Garden condominium, a District 20 property situated along Angklong Lane, sits on an expanse 544,738 sq ft in size.
The site’s plot ratio is 1.6, and the new developer can construct up to 871,581 sq ft gross floor area (GFA) or incorporate 10% bonus balcony area to reach 958,739 sq ft.
According to the current development laws, the new buyer can redevelop Faber Garden’s 233 units to a 12-storey development.
Individuals who own units at Faber Garden are set to become millionaires in one hit should the sale succeed with the least unit yield expected to be S$4.38 million and the highest being S$6.75 million for residential units.
For commercial units, the least yield is expected to be S$1.99 million, while the highest could go up to S$4.83 million. This information was provided by Galven Tan, CBRE’s executive director of capital markets.
CBRE Singapore is Faber Garden’s appointed marketing agent and is still the firm that handled the successful sale of Pacific Mansion.
The land rate at the set reserve price is S$1,414 per sq ft per plot ratio (psf ppr), but after factoring in 10% bonus balcony area the rate drops to S$1,342 psf ppr.
This is because there is a development charge of S$52.8 million, and if the developer chooses to maximize the GFA by adding the 10% bonus balcony area allowed, there will be further charges that will raise the total additional cost to S$106.7 million.
On the bright side, the new developer could increase the new housing units by almost five times the original number, to yield in excess of 1,150 units of around 753.5 sq ft in average size.
The 34-yr old Faber Garden condo is on freehold ownership, and it sits among nice classy bungalows.
The developments in the area, which is very near the Central Nature Reserve, are mainly landed housing and private condos. Windsor Nature Park and the Lower Pierce Reservoir are also nearby, practically a walking distance away.
It is for this reason that CBRE says the site is likely to attract developers interested in putting up luxurious housing units for families who want to be away from the city frenzy, and also around the coolness of nature.
Also, in addition to having three MRTs within a distance of around 2.5km, the CC16 Marymount, NS16 Ang Mo Kio and CC15 Bishan, there is also Bright Hill MRT station whose opening is set to be in 2021.
At the same time, CBRE notes, some factors favour the sale better than they did in the property’s first attempt to sell.
For example, there is the new MRT station that will be right at the doorstep of Faber Garden, thus making connectivity the best it could be.
The prevailing market conditions are also much more favourable, putting the current reserve price within normal range.