Shun Tak spends near $0.6 bn on two prime sites in Singapore

Hong Kong-listed Shun Tak Holdings announced on June 13 that it has purchased two prime sites in Singapore for a total of $593.5 million. Both deals were brokered by CBRE.

One was the en bloc purchase of Park House at 21 Orchard Boulevard for $375.5 million, which translates to a record breaking price of $2,910 psf per plot ratio (ppr).

The prime, freehold site of 46,084 sq ft has a plot ratio of 2.8 under the 2014 Master Plan. The site can be redeveloped into a luxury residential development with a gross floor area of 129,035 sq ft. No development charge is payable.

Park House is a 60-unit development, with 56 apartments and four shop units. Each apartment owner will receive a gross payout of $6.1 million, while each shop owner will walk away with $8.1 million.

The second site purchased by Shun Tak is located in the most coveted address in Singapore, Nassim Road. It’s a house sitting on a 66,452 sq ft, freehold site at 14 and 14A Nassim Road, believed to be the former home of the Tan family of privately held investment advisory firm, Siang Kuang. Word on the street is that Siang Kuang Avenue, off MacPherson Road where there’s now an interim park, was named after the family.

The site at Nassim Road has a plot ratio of 1.4, and can be redeveloped into a new luxury residential project with a gross floor area of 93,033 sq ft. The purchase price for the Nassim Road site is $218 million. The price translates to $2,744 psf ppr, including development charge.

According to Shun Tak, the acquisitions will allow the group to enhance its existing hotel and commercial portfolio in Singapore by adding a residential component to the mix. “Our group has been diligently exploring investment opportunities beyond our Greater China home base, and Singapore is certainly one of our strategic emphases given its robust growth,” said Pansy Ho, Shun Tak’s group executive chairman and managing director. Incidentally, she is the daughter of Macau gaming tycoon Stanley Ho, 95, who stepped down as chairman of Shun Tak in June last year.