Tags: enbloc / grand tower

Enbloc news: Grand Tower sold for $88.5m

- August 4, 2011 1 Comment

Grand Tower located near Novena MRT station sold en bloc for $88.5 million. This reflects a land rate of $1,376psf ppr based on a plot ratio of 2.958.

Marketing agent for the site Savills said the buyer is 27MR Pte Ltd, a wholly owned subsidiary of boutique developer New Century Real Estate.

New Century Real Estate is also the developer for 8Rodyk condominium.

Grand Tower is a freehold development with a site area of 21,742 sqft. The site can potentially accommodate a new high rise residential development with a maximum permissible Gross Floor Area of approximately 64,310sqft.

The site can potentially be redeveloped into a residential development comprising more than 70 apartments averaging 800sqft each.

Savills said the breakeven cost is estimated between $1,900 to $2,000psf.

The existing development comprises 28 apartments with an area of about 1,873sqft each.

Savills said each owner can potentially receive approximately $3.16 million, or $1,688psf on strata area. This is higher than the $1,000 to $1,100psf if the apartments were to be sold individually in the secondary market.

Grand Tower is Savills' fourth collective sale for the year following Newton View at $147.6 million in March.

Source: Channel News Asia

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Tags: enbloc / grand tower / news

Enbloc News: Grand Tower

- July 4, 2011 No Comments

Grand Tower, a boutique freehold residential site located near Novena MRT station, has been launched for sale by tender.

The redevelopment site is located at the junction of Sinaran Drive and Moulmein Rise.

The 33-year-old tower block, consisting of 28 apartments, occupies an area of almost 22,000sqft in total.

Its marketing agent Savills Singapore said that the site can potentially be redeveloped into a high-end lifestyle project with a permissible gross floor area of approximately 64,000sqft.

This exceeds the allowable plot ratio of 2.8 as indicated in the 2008 Master Plan.

The new development can accommodate 74 apartments averaging 800sqft each.

Grand Tower has an indicative price of $88.8 million or about $1,381psf ppr.

Savills said there is no development charge payable and the breakeven price for the new development is estimated to be between $1,900 and $2,000 psf.

The company added that the recent transactions at nearby Gilstead Two were priced between $2,181 and $2,217psf whilst units at the 99-year-old leasehold Soleil @ Sinaran were transacted at between $1,773 and $1,966psf.

The tender for Grand Tower will close at 3pm on July 28.

Source: Channel News Asia

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Tags: enbloc / grand tower / pine grove

Pine Grove's DC is almost $500 million....!

- March 14, 2011 No Comments

And speaking of Development Charge (DC), a report in the TODAY newspaper today has revealed another possible stumbling block to the Pine Grove collective sale process.

The high development charge (DC) of nearly half a billion Singapore dollars for Pine Grove, which has been put up for enbloc sale recently, may be a turn-off and a potential deal breaker for some property developers.

Property analysts said that the site’s DC is about 9.5% higher at $460 million, in line with the rate hikes announced earlier this month.

Including the DC, analysts said Pine Grove’s total cost to a potential buyer works out to about $2.2 billion or $1,152psf ppr.

Pine Grove is just one of the enbloc properties affected by a higher DC rate.

And residents at enbloc properties may have to accept a lower reserve price to balance out the higher DC charge just to retain the attractiveness of the property’s total costs, said analysts.

The rise in DC will also eat into the seller’s profit margins – a trend that has been unfolding for the last four years.

“Previously, we were looking at as high a profit margin of 50 to 100% but now, if you get a margin of 15 to 30%, I think you’re considered quite lucky”, said Ms Christina Sim, director of investment at Cushman & Wakefield.

Analysts say the DC’s rate of increase depends on the transacted prices in the particular area over the last six months.

In areas like Upper Serangoon Road and Punggol, DC for non-landed properties has increased by 17%.

Non-landed properties in prime areas like Holland Road, Sixth Avenue and Farrer Road have risen by 25%.

Properties with no DC should benefit both developers and residents, analysts said.

For instance, Novena condominium Grand Tower, which has also been put up for collective sale, will seem more attractive to developers. This is because it is much smaller compared to Pine Grove and is selling for $92 million with no DC.

Each owner of the 28 units should receive a tidy $3.28 million from the sale.

Call us wet blankets if you must, but the wife and I are certainly not holding our breaths on the Pine Grove enbloc...

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Tags: enbloc / grand tower

Enbloc news: Grand Tower

- March 10, 2011 No Comments

As reported in the BT today, Grand Tower at Moulmein Rise near Novena MRT station has put been put up for collective sale with an indicative guide price of $92 million or about $1,430psf of potential gross floor area.

The 21,742sqft freehold site can potentially be redeveloped into a high-end boutique development with permissible gross floor area of about 64,310sqft, exceeding the 60,878sqft based on the 2.8 plot ratio for the site in 2008 Master Plan. No development charge is payable, according to Savills Singapore, which is marketing the collective sale of Grand Tower.

A new project on the site can accommodate about 70 apartments averaging 850sqft.

Currently Grand Tower, which is 33 years old, comprises a single tower with 28 apartments of about 1,873sqft each. Based on the $92 million guide price, each owner is expected to receive about $3.28 million.

Based on the $1,430psf ppr unit land price, the break even cost for a new project could be around $2,000psf, say analysts.

Recent transactions at nearby L’VIV have been at between $2,043psf and $2,133psf, while at the 99-year leasehold Soleil @Sinaran, deals have been at $1,634 – 1,743psf, Savills said.

The tender for Grand Tower closes on April 6.


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