Spanish Village launches collective sale at $882 million

Owners of the 226-unit Spanish Village have launched the freehold residential site for collective sale, at $882 million.

The asking price reflects a land rate of $1,721 psf per plot ratio (ppr), inclusive of a development charge of about $30 million. However, if the 10% additional gross floor area (GFA) for the balcony area is included, the land rate will be reduced to $1,659 psf ppr, including an additional development charge of around $55 million, says Edmund Tie & Company (ET&Co), which is marketing the property.

Under URA’s Master Plan 2014, the freehold 331,457 sq ft site is zoned for residential use, with a gross plot ratio of 1.6. The site can be redeveloped into a new 703-unit project. Completed in 1987, Spanish Village is located on Farrer Road in prime District 10. The development is a six-minute walk from the Farrer Road MRT station on the Circle Line and an 11-minute drive to Orchard Road and the CBD.

Across the road, Tulip Garden, was sold to a joint venture between Yanlord Land and MCL Land in April for $907 million ($1,790 psf ppr). This was its fourth collective sale attempt.

Meanwhile, in mid-May, a Far East Organization-led consortium won the 99-year leasehold commercial and residential development site at Holland Road in Holland Village with a bid of $1.2 billion (about $1,888 psf ppr).

“URA’s recent tender award of the Holland Village GLS [government land sales] site for a mixed-use and pedestrian-oriented development will add to the vibrancy of the locale,” says Tan Chun Ming, senior director of investment advisory at ET&Co.

The tender exercise for Spanish Village will close on July 18. This is its third collective sale attempt.