Four collective sale sites launched in five days

By Timothy Tay & Angela Teo / EdgeProp | November 3, 2017 9:00 AM SGT
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Source: JLL
All the owners at 11 Balmoral Road have given their consent for the collective sale of the property
On Oct 31, How Sun Park and 11 Balmoral Road were launched for collective sale by tender, marking the third and fourth collective sale sites to be launched in five days, since Crystal Tower was launched on the evening of Oct 26.
Significantly, the owners of Pearl Bank Apartments, one of the private residential projects in Singapore with the least amount of years left on its lease, are making a fourth attempt at a collective sale. With about 52 years left on its 99-year lease, they will see the lease expire in 2069 if the site is not redeveloped.
Meanwhile, the second collective sale site in 2H2017 to receive 100% owners’ consent before launch is the 17-unit 11 Balmoral Park. The first to receive all owners’ consent was Tai Wah Building, which was launched for collective sale at $81 million, or $2,035 psf per plot ratio (ppr), on Oct 9. Receiving full consent from owners is likely to shorten the time it takes for the winning developer to take ownership of the site.
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With developers looking to replenish their land banks, the close of the tenders of Jalan Besar Plaza, Royalville, Tai Wah Building and Mayfair Gardens in mid-November is expected to be keenly watched.
11 Balmoral Road
The owners of the 17-unit apartment block at 11 Balmoral Road have unanimously agreed to put their development up for en bloc sale at $75 million. Including estimated development charges of $10 million, this translates into an estimated land rate of $1,761 psf ppr, according to sole marketing agent JLL.
This is the first en bloc sale attempt by the owners of 11 Balmoral Road. With 100% consent, the sale would not need to go through strata title board approval, so the buyer can take ownership of the site at the end of the vacant possession period, explains Tan Hong Boon, regional director of capital markets at JLL. “The developer can therefore plan for the marketing and building of the new project more quickly,” he adds.
The property sits on a 30,200 sq ft, freehold site zoned for residential use with a gross plot ratio of 1.6 under the 2014 Master Plan. With a gross floor area (GFA) of 48,320 sq ft, the site can therefore be redeveloped into a new 64-unit apartment project, assuming an average size of 755 sq ft for each unit.
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Given the palatable absolute price for the freehold site, its prime location and 100% consent obtained by the owners, JLL’s Tan expects the development to attract interest from a wide pool of developers. The tender for 11 Balmoral Road closes on Nov 29.
How Sun Park
According to Sieow Teak Hwa, managing director of Teakhwa Real Estate, the marketing agent for How Sun Park, the freehold development on How Sun Road has an indicative price of $78 million. After including estimated development charges of $2.92 million, the land cost works out to $1,052 psf ppr, or $1,014 psf ppr if the 10% bonus GFA for balconies is included.
In the event the collective sale is successful, each owner of the 20 townhouses in the development will walk away with at least $3.9 million each, he adds. As at Oct 31, 19 of the 20 owners (95%) have consented to the collective sale.
The existing development sits on a freehold site of 54,943 sq ft. Under the 2014 Master Plan, the site is zoned Residential, with a plot ratio of 1.4, which translates into a GFA of 76,920 sq ft. The developer could build a new residential project with 102 units, assuming an average size of 753 sq ft for the new units.
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Near How Sun Park is Sun Rosier, which was sold en bloc to a SingHaiyi-Huajiang International Corp joint venture in September at $271 million ($1,325 psf ppr).
How Sun Park is within walking distance of the Bartley MRT station. The tender for How Sun Park closes on Nov 28.
How Sun Park is located nearby Sun Rosier, which was bought by a SingHaiyi-Huajiang International Corp joint venture in September at $271 million
Source: Teakhwa Real Estate
How Sun Park is located nearby Sun Rosier, which was bought by a SingHaiyi-Huajiang International Corp joint venture in September at $271 million
Pearl Bank Apartments
Pearl Bank Apartments is expected to be launched for collective sale in two weeks. This will be its fourth attempt at a collective sale. The reserve price will be $728 million.
After factoring in a lease top-up premium of about $195 million for the site, this translates into a land cost of about $1,505 psf ppr. The buyer will not need to pay development charges, says Colliers International, the marketing agent.
Pearl Bank Apartments sits on a land area of 82,376 sq ft and has a gross plot ratio of 7.2 under the 2014 Master Plan. The site has an existing GPR of 7.4479. As such, subject to authorities’ approval, the site can be redeveloped into a residential project with a total GFA of 613,530 sq ft. This translates into 730 units, assuming an average size of 800 sq ft for the new units.
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Pearl Bank Apartments contains a total of 280 apartments as well as eight commercial units. It has 52 years left on its 99-year lease.
Pearl Bank Apartments is making its fourth attempt at a collective sale with a reserve price of $728 million
Source: Colliers International
Pearl Bank Apartments is making its fourth attempt at a collective sale with a reserve price of $728 million
Crystal Tower
On Oct 26, the freehold Crystal Tower was up for sale by tender. The asking price was $138 million, or $1,406 psf ppr, based on the existing GFA.
The property is situated on an elevated 60,482 sq ft site, which is zoned Residential under the 2014 Master Plan. The site has a plot ratio of 1.6 but, subject to authorities’ approval, can redeveloped up to its existing GFA of 98,179 sq ft, reflecting an equivalent plot ratio of 1.623, according to exclusive marketing agent Edmund Tie & Company (ET&Co).
The property can be redeveloped to house about 130 units sized from 753 sq ft, says Swee Shou Fern, senior director of investment advisory at ET&Co. No development charge is payable.
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Located on Ewe Boon Road, the 28-unit Crystal Tower is within a 1km radius of Anglo- Chinese School (Primary) and Singapore Chinese Girls’ School. The tender exercise will close on Nov 28.
This article appeared in EdgeProp Pullout, Issue 804 (Nov 6, 2017).

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