Macly Group, a well-known property developer in Singapore, has salvaged Riviera Point’s fourth attempt to sell en bloc. Owners of Riviera Point could not find a buyer through the public tender whose reserve price was S$75 million.
Luckily, they have managed to seal a deal with Macly Group during the 10-week extension that has been available since the tender closed on December 18.
Owners of this 33-unit freehold property whose location is commonly referred to as River Valley have tried to sell three times before – 2007, 2011 and 2013. The property was developed in the ‘90s, finally being completed in 1993.
As CBRE, the property marketing agent noted, the 14,579 sq ft site has been zoned for residential use, and although the development is currently only 12 storeys, the new developer has authority to make the new development 36-storey high.
The marketing agent also says the site’s plot ratio now is 2.8, and the current gross floor area (GFA) is about 49,265 sq ft. However, the new plot ratio will be around 3.379.
Based on the price of S$72m at which Macly Group acquired the property, the land rate is S$1,461 per square foot per plot ratio (psf ppr), a little lower than the anticipated asking price of S$75m or S$1,522 psf ppr.
Riviera Point is at a prime location, being right within District 9. It also has a good road network.
The property has a 35m frontage of the 2 Kim Yam Road, as well as a 30m frontage of the River Valley Road.
Also CBRE projects a great view from the high floor units of the new development, particularly an unblocked view of Orchard Road.
Residents on those floors will also be able to enjoy a view of the Singapore skyline. As for occupiers of the lower floors, CBRE says they will have a good view of the Oxley area.
With prestigious schools like Chatsworth and ISS International schools around, Somerset MRT and many social amenities, Macly Group should find it relatively easy to sell off the new units once completed.
To the developer, it is an advantage that the property is freehold, because there are no lease premium charges to increase the overall cost of the property.
Such additional costs would, obviously, have had an impact on the price of the new housing units.