PEAK Court, a freehold residential property on Thomson Road, changed hands to Tuan Sing Holdings and Rich Capital Holdings through collective sale at S$118.8 million.
30% stake on the property will be held by Rich Capital while the remaining 70% will be held by Tuan sing. TSRC Novena, a JV company will conduct the acquisition.
This is the 2nd en bloc sale in a week after Villa D’este was sold. Including Peak Court and Villa D’este collective sale, total En bloc sale in 2018 has now reach around $8.5 billion.
PEAK Court is a Thirty-five-year-old development comprised of one 4 storey block with 20 maisonette units occupying 57,378 sq ft land. On the basis of a GPR of 1.4 the purchase price translates to approximately S$1,558 psf ppr.
On Friday, the buyer mentioned during a press statement that the site is intended to be redeveloped with 106 units comprised of 1, 2, and 3-bedroom apartments overlooking a 2-storey landed enclave.
Kelvin Soong, executive director at Rich Capital stated that this was the maiden acquisition of the company in the residential property market of Singapore and the first purchase through en-block sale, and that the company was seeking to establish itself as a new identity in the property development space.
Rich Capital was earlier known by the name Infinio Group.
He added further that the Thomson area is in high demand because of very popular schools, the CBD, and Orchard Road being very close by and that the upside for redeveloped property in the vicinity was high.
The acquisition as well as redevelopment of the property is likely to be funded through internal accruals and bank borrowings.
The public tender for Peak Court has been launched, and it is set to close on May 9, 2018. In one of the rare instances, all owners have spoken in one voice, accepting to sell their 20 maisonettes collectively.
They are asking for a minimum price of S$106 million for their 35-yr old condominium. The property is on freehold ownership, and it is located in Singapore’s prime area, the core central region (CCR), specifically in District 11.
According to Edmund Tie & Company (ET&C), the property’s marketing agent, the site can be redeveloped to produce an upscale condominium that is resort-like, comprising a good 106 units.
With approvals from the relevant authorities, the agent added, the successful bidder could construct a 5-storey apartment that is fully serviced, or even a healthcare facility.
Currently, the medium-size development is four storeys high, and each unit has three bedrooms. As an income generating project, it is considered inexpensive by Singapore’s standards, but with the anticipated new development, the site is likely to become a high-income earner.
This 57,350 sq ft site is situated along 333 Thompson Road, and close to Novena MRT station. It is a little towards the northern side of the vibrant Orchard and Tanglin areas.
Although the area’s sub-zone name is Malcolm, when it comes to matters of planning, residents term it Novena.
The developer who scoops this prime site at the estimated land rate of S$1,398 per sq ft per plot ratio (psf ppr) will have great leeway in choosing what to construct.
The site’s gross plot ratio is 1.4, and after factoring in the 10% bonus balcony area, the land rate could drop to S$1,342 psf ppr.
Whatever rate the developer ends up with, it will be easy to recoup the capital after constructing and selling one of the profitable developments the site allows for.
ET&C’s investment advisory senior director, Mr. Tan Chun Ming, says the new developer could choose among developments catering for young families, and developments serving the working adult or the expatriate.
This is because on one hand there are decent schools very near the site, and on the other hand the place is very close to the Central Business District and an anticipated health hub.