[UPDATE] Hoi Hup and Sunway secure Thiam Siew Avenue sites for $1.1 bil

SINGAPORE (EDGEPROP) - Two freehold sites at Thiam Siew Avenue, sitting between Haig Road and Tanjong Katong Road in prime District 15 in the east, were sold for $815 million to a joint venture between Hoi Hup Realty and Sunway Developments. The sale was achieved after a competitive tender process managed by exclusive marketing agency, Savills Singapore at the close of the public tender on Nov 18.

The transaction comprises 22 freehold residential plots located on Thiam Siew Avenue with a total land area of 263,794 sq ft. The properties are zoned “Residential” with a plot ratio of 2.8 on the Masterplan 2019.

Based on the sale price of $815 million, and a further estimated development charge of approximately $284 million, the land price works out to about $1,488 psf per plot ratio (psf ppr). If the price includes an estimated $39.3 million for 7% balcony space, the land price works out to $1,440 psf ppr.

“At $815 million, the deal also marks the largest residential development site sold since July 2018,” says Galven Tan, deputy managing director of investment sales and capital markets at Savills Singapore who brokered the sale.

According to Wong Swee Chun, chairman and managing director of Hoi Hup Realty, the developer and its long-term joint venture partner, Sunway Developments intends to redevelop the sites into two luxury high-rise condominiums with more than 800 units. Rajah & Tann Singapore LLP acted for the vendors in the sale.

“In today’s competitive real estate market, we are very confident of the demand for quality freehold developments, especially for these big freehold plots in District 15,” says Wong.

The sites at Thiam Siew Avenue are located within walking distance to two MRT stations, namely Paya Lebar Interchange MRT Station (for the East-West and Circle Lines) and Dakota MRT Station on the Circline Line. The sites are poised to benefit from their proximity to Paya Lebar Central precinct, URA’s first Business Improvement District pilot programme outside the CBD, notes Savills. Reputable schools in the area include Kong Hwa, Haig Girls’ and Tanjong Katong Primary Schools which are within 1km radius.

In September, Hoi Hup and Sunway Developments won Flynn Park condominium in a collective sale for $371 million in a deal brokered by Savills Singapore too.