When the owners of Katong Park Towers put out a public tender back in February, they were hoping to find a buyer willing to part with S$288 million for their 116-unit condominium.
What they did not know is that their tender would be so competitive as to have a developer bidding at 20% more than their asking price.
Now the residential property that is highly endowed with historic landmarks has been scooped at what observers see as an obscene figure of S$345 million or S$1,280 psf ppr.
In the meantime, the owners will be laughing all the way to the bank, with the owner of the largest penthouse taking a handsome S$12.08 million for that single unit.
Owners of the five penthouses at Katong Park Towers stand to take home amounts ranging from S$4.95m – 12.08m for each of them depending on its size.
As for the other owners, they are expected to pocket amounts ranging from S$2.25m – S$3.23m depending on the size of one’s unit or its ground floor area (GFA).
According to Cushman & Wakefield, the firm that brokered the deal, the owners who sold en bloc will enjoy much greater premiums than individuals who had chosen to sell their units singularly in the open market.
All the ten bids the tender attracted were above the owners’ asking price.
The size of the Katong Park Towers site is 140,758 sq ft, and its GPR as per the 2014 URA Master Plan is 2.1.
According to the law, Bukit Sembawang Estates have the leeway to construct development 24 storeys high, and as Katong Park Towers’ agent mentioned earlier on, the developer could increase the units to 388 if they keep the average size at 753.5 sq ft.
This is possible if they utilize the allowed GFA up to 325,151 sq ft inclusive of the 10% balcony area. This means the land rate for the site might end up being just around S$1,246 per sq ft per plot ratio (psf ppr) even after factoring the lease upgrade premium of S$60 million.
The location of Katong Park Towers is quite strategic. Not only is it surrounded by interesting historic landmarks, it is also very near the anticipated Katong Park MRT station; a mere 200 metres away. The station is set to be completed in 2023.
Besides, the hot district 15 site has already been zoned residential, and it has a high development baseline. This means the developer will not need any special approvals in relation to the use of land, and there is no development charge involved.
It is not just the owners of Katong Park Towers who are excited about the successful sales deal. Owners of Bukit Sembawang Estates are ecstatic they were able to beat a list of other willing buyers.
Bukit Sembawang Estates’ CEO, Mr. Ng Chee Seng, expressed their joy saying they were pleased to have won the tender for a coveted site in a prime area. He disclosed their intention to construct a development that will provide a clear scenic view of the city’s skyline.
Other aspects that make Mr. Seng view the site as having great potential is its high connectivity, the area’s rich heritage, as well as its rejuvenation initiatives as per the Kallang Master Plan.
He has expressed confidence that theirs will be another addition to their portfolio of high quality developments. As is normal, the Strata Titles Board has to give a nod to the sale.