CDL’s Forest Woods and Gramercy Park steal the show
By Michael Lim
/ The Edge Property |
Singapore’s leading listed property group, City Developments (CDL), has launched just one residential project this year, the 519-unit Forest Woods. Yet, it was one of the bestselling private condominium projects in 2016. At its launch during the weekend of Oct 8 and 9, Forest Woods saw 337 units (65%) sold by balloting at an average price of $1,400 psf. As at mid-December, the tally was 380 units (73%).
Located on Lorong Lew Lian, Forest Woods is a five-minute walk to the nex shopping mall, which is integrated with the Serangoon MRT interchange station and the Serangoon bus interchange.
The crowd on balloting day at Forest Woods, during which 337 units were snapped up
Forest Woods was CDL’s top-selling project in October, with 337 out of 519 units sold over its launch weekend of Oct 8 and 9
However, it is not just in the suburbs that CDL has seen units move. There has also been buying activity at Gramercy Park on Grange Road, its 174-unit luxury condo project.
Gramercy Park — future capital upside
When Gramercy Park obtained its Temporary Occupation Permit (TOP) in 2Q2016, the project was soft launched with an initial release of 40 units in May. The units, priced at an average of $2,600 psf, were quickly snapped up, mainly by Singaporeans. To date, 45 of the 50 units released have been sold.
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There are some foreign buyers as well, given Gramercy Park’s freehold tenure and prime district 10 address. CDL has also marketed the project overseas, in Malaysia, Indonesia, Hong Kong and China (in Beijing and Shanghai).
View of the Gramercy Park grounds from one of the towers. CDL has sold 45 of the 50 units launched, at an average price of $2,600 psf.
“The buyers recognise that $2,600 psf for a prime freehold project on Grange Road represents great value,” says Samuel Eyo, managing director of Singapore Christie’s International Real Estate. “In the past, projects launched in the area crossed $3,000 psf. So buyers of Gramercy Park today can expect to see future capital upside.”
Units at the project range from 1,184 sq ft for a two-bedder to 7,287 sq ft for a five-bedroom penthouse. It was designed by NBBJ of New York, the same architect behind CDL’s other landmark development, the 1,111-unit The Sail @ Marina Bay.
Nouvel 18 — CDL’s third PPS
Unlike Gramercy Park, Nouvel 18, another CDL luxury condo project, had a more unconventional exit. It was divested via a Profit Participation Securities platform in October, marking CDL’s third and latest PPS. The divestment involved the sale of CDL’s entire stake in Summervale Properties, the entity that owns Nouvel 18, for $977.6 million.
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CDL sold its entire investment in Summervale Properties, the owner of Nouvel 18 for $977.6 million, through its third PPS platform
Based on the saleable area of 351,000 sq ft, the deal valued the 156-unit freehold project at $2,750 psf. The sale allows CDL to avoid paying hefty extension charges under the government’s Qualifying Certificate conditions, which would have kicked in last month.
Nouvel 18 is a redevelopment of the former Anderson 18. The 112,098 sq ft freehold site was purchased for $477.7 million, or $1,650 psf per plot ratio, in 2007 under a 50:50 joint venture (JV) between CDL and Wing Tai.
The twin 36-storey solid black towers were designed by renowned Pritzker Prize-winning French architect Jean Nouvel, who also designed Wing Tai’s other luxury condo, Le Nouvel Ardmore, next door.
The PPS has been widely anticipated after CDL bought Wing Tai’s 50% stake in Nouvel 18 for $411 million in July, which valued the property at $2,342 psf.
Although CDL has divested the asset, its wholly-owned subsidiary, Trentwell Management, has been appointed the asset manager and marketing agent of Nouvel 18. It will manage, lease, market and sell the units in the development. For now, asset enhancement works are underway, and units will be offered for lease in 1Q2017.
CDL’s first PPS, launched two years ago, was a $1.5 billion partnership with US investment bank Blackstone’s Tactile Opportunities Fund and CIMB Bank’s Labuan Offshore Branch. The PPS invests in the cash flow of the assets within CDL’s Quayside Collection, namely the W Singapore Hotel, The Residences at W Singapore and the Quayside Isle retail strip.
The second PPS was launched in 2015, and it was a $1.1 billion joint investment with Alpha Investment Partners in a portfolio of three of CDL’s office assets, namely Central Mall (office tower), Manulife Centre, and 7 & 9 Tampines Grande.
New beginning at South Beach, The Venue
At South Beach, CDL’s mixed-use development in a JV with Malaysia’s IOI Properties, the JW Marriott Hotel Singapore South Beach officially opened on Dec 15. The 634-room luxury hotel was initially branded The South Beach. Besides the JW Marriott Hotel, South Beach also contains luxury residences above the hotel, which is yet to be launched, as well as retail outlets and a Grade-A office tower, which is fully leased. The South Beach is linked to Suntec City via an overhead pedestrian bridge, and to the Esplanade MRT station underground.
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Next year will see the completion of CDL’s The Venue Residences and Shoppes in the second quarter. Loca ted a short distance from the Potong Pasir MRT Station, The Venue contains 266 residential units and a retail po dium with 28 strata shops for sale. The residential units range from a 495 sq ft one-bedder to a 2,142 sq ft four-bedroom penthouse and the commercial units are from 301 to 1,302 sq ft.
At The Venue Residences, 70% of the 266 units have been sold, while 60% of the 28 units at The Venue Shoppes have been taken up
To date, 70% of the residential units at The Venue have been taken up at an average price of $1,400 psf, while 60% of the strata commercial units have been sold, with the average price hovering at $5,400 psf.
“Buying demand was slow and selective this year and the cautious sentiment may extend into 2017,” says CDL’s spokesman. “Nevertheless, projects with strong locational attributes can be expected to out perform the rest of the market.”
This article appeared in The Edge Property Pullout, Issue 760 (Dec 26, 2016) of The Edge Singapore.
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