[UPDATE] Neo Group and Boldtek Holdings are joint buyers of Advance Apartment in Geylang for $26.5 mil

SINGAPORE (EDGEPROP) - A joint venture led by Singapore-listed food catering company Neo Group and construction company Boldtek Holdings, announced that they had jointly purchased Advance Apartment in a collective sale for $26.5 million on Dec 22, 2020. Neo Group and Boldtek own 80% of the joint venture company (40% each), while Jeffrey Hong of Sovereign Group and EDC Holdings, an advisory services firm owned by Sng Lek Kiam and Sng Yik Yeam, hold a 10% stake each.

Advance Apartment is a 14-unit development is located at 8 Lorong 25A Geylang, and sits on a 11,429 sq ft, freehold site. This was its second collective sale attempt, and the sale was brokered by JLL.

Under URA Master Plan 2019, the site is zoned residential or institutional use with a gross plot ratio of 2.8, and an allowable height of up to eight storeys.

A developer can potentially configure the allowable gross floor area of 32,001 sq ft into 34 new apartments, with average size of 900 to 925 sq ft, says Nicholas Ng, senior director at JLL. “The site enjoys excellent public transport accessibility with Aljunied MRT Station being a mere 260 metres away," he adds.

The sale price of $26.5 million reflects a unit land rate of about $877 psf per plot ratio (psf ppr) or $861 psf ppr, after factoring in a 7% bonus balcony gross floor area and a corresponding estimated development charge of about $3 million, according to Ng.

The owners of Advance Apartment could receive gross sale proceeds of between $1.7 million and over $2 million.