En Bloc Properties within the Core Central Region (CCR) continue to sell at handsome prices as developers seek to capitalize on an upbeat residential housing market.
Koh Brothers, a construction and property developer, through its subsidiary, KBD Ventures, has acquired the 32-apartment Toho Mansion for a handsome S$120.43 million.
This means the site land rate is S$1,805 per square foot per plot ratio (psf ppr). However, the rate could drop to around S$1641 if, as is likely, Koh Brothers increases their development’s gross floor area (GFA).
According to Edmund Tie & Company, the agent who handled Toho Mansion’s en bloc sale, the site has been zoned residential under the 2014 Master Plan, and due to the area’s high development baseline, the new developer is not obliged to pay any development charge.
Francis Koh, who is Koh Brothers’ managing director as well as group CEO, has expressed their excitement, noting just how rare it is to find a freehold site right in the middle of Holland Village, an enclave admired for its vibrant lifestyle.
He says they have a plan to introduce a fresh concept through their redevelopment project, offering an experience that integrates seamlessly with the existing convenience and connectivity within the neighbourhood.
He also notes that the government has earmarked the area for makeover and expansion, which their new development will blend with nicely.
From the Toho Mansion that sits on an elevated site, residents can easily access the Holland Villageshopping centre as well as the Chip Bee Gardens.
The developer must also have liked the fact that the site is adjacent one of the country’s Good Class Bungalows estate.
The developer also wants to improve its land bank and expand its Singapore portfolio, since it is clear the residential housing market is improving by the day.
Mr. Koh disclosed that Toho Mansion is the third in a series of purchases they have recently made, saying they will continue to monitor the market with a view to identifying a great time to launch their project.
The Toho Mansion site is freehold, which means Koh Brothers does not have to pay extra money for lease upgrade. Also considering the stipulations of the 2014 Master Plan, the developer will have room to construct many more housing units than currently exist.
The site size is around 47,660 sq ft, and its plot ratio is 1.4, which means the current gross floor area (GFA) is 66,724 sq ft. Luckily, the developer can increase the GFA to about 73,396 sq ft inclusive of the 10% bonus balcony and stand to reap high after disposing of the increased number of housing units.
According to Swee Shou Fern, Edmund Tie & Company’s senior director for investment advisory, this site that Koh Brothers have acquired is very attractive, and it distinguishes itself from all others around.
She highlighted a combination of great factors including the site being freehold with single ownership and being on a Holland Road address where the development baseline is high.
She also added to that list the convenience the Holland Village provides, and the proximity it has to the Chip Bee Gardens and the Holland Village MRT station.
Even as Koh Brothers look forward to developing a lifestyle themed property, its shares are doing well at the Singapore Stock Exchange.
Although there was a 1.5% or S$0.005 drop on Mar 9, they were still trading at S$0.33 by mid-afternoon. Logistics of the Toho Mansion sale are expected to be completed in 3 months’ time and Koh Brothers can get on with their redevelopment plan.