Park House launched for en bloc sale at $308 mil

Park House, a 15-storey block located at the junction of Orchard Boulevard and Tomlinson Road, has been put on the market for sale with a price tag of $308 million.

The property sits on a freehold site of about 46,084 sq ft. It has an allowable plot ratio of 2.8. As the baseline plot ratio is equivalent to 3.66, no development charge is payable, says CBRE, the exclusive marketing agent.

The guide price of $308 million It reflects a land rate of $2,387 psf per plot ratio (ppr). If the 10% bonus balcony area is taken into consideration, it will translate to $2,170 psf ppr.

Built in 1970, Park House contains 56 apartments of about 1,571 sq ft each, and four ground-floor shops of around 1,528 sq ft each. About 81.6% of the owners have signed the collective sale agreement. Edward Ong, chairman of the collective sale committee has lived in Park House since 1986. “We have talked about a collective sale on and off for the last 12 years, but this time, we were able to achieve 80% support from the owners with the help of CBRE,” he says.

If the collective sale is successful, the apartment owners of Park House will walk away with at least $5 million each, while the shop owners will receive at least $6.65 million.

Park House is just a short stroll to the Orchard Road shopping belt, near Camden Medical Centre and a four-minute walk from the upcoming Orchard Boulevard MRT station.

“In the last few months the luxury residential market has come to life and developers are actively looking to buy prime sites and have been asking us if we have any sites in the pipeline,” says Jeremy Lake, CBRE managing director of capital markets.

The last site in prime District 9 to be sold en bloc was Cairnhill Mansion, which was sold to Low Keng Huat for $362 million or $2,311 psf ppr in Feb. After factoring in the 10% bonus balcony area, the land rate was $2,101 psf ppr.

CBRE’s Lake expects to see at least eight to 10 bids for Park House, from Singapore-based developers, as well as those from China, Hong Kong and Malaysia.

The public tender will close on May 31.