[UPDATE] TA Corp sells serviced apartment 12 on Shan for $86.5 mil to Roxy-Pacific-led JV

SINGAPORE (EDGEPROP) - On April 1, Singapore-listed company TA Corporation announced that it is selling freehold serviced apartment 12 On Shan, located in Balestier, for $86.5 million.

TA Corporation’s indirect wholly-owned subsidiary, TA Realty, had issued an option to purchase dated March 11 to RL Properties. The option was execised on March 31 by RL Properties, a joint venture made up of Roxy-Pacific Holdings, Macly Capital and LWH Holdings.

The buyers are understood to be looking to maintain the serviced apartment operations in the property, says Karamjit Singh, chief executive of Delasa, which brokered the sale. "This property was uniquely positioned as an income generating asset while feeding well into the strong overall private residential market," he adds. "It was found to serve well as a form of landbank with its freehold tenure for future redevelopment."

12 on Shan had previously been put up for sale in February of last year with a guide price of $93 million, or $1,367 psf based on the gross floor area (GFA) of 68,048 sq ft.

12 On Shan, located at 12 Shan Road, is a 15-storey building comprising 78 fully furnished apartments, with sizes ranging from 350 to 930 sq ft. Completed in 2018, it has a total GFA of 68,048 sq ft and total net lettable area of 51,652 sq ft. The property, which was originally a residential development, was converted to become a serviced apartment due to prevailing poor market conditions at the time, as well as other external business factors that included certain property market cooling measures, according to TA Corporation. Under the URA 2019 Master Plan, the site is zoned for residential use with a plot ratio of 2.8.

The property is close to the healthcare cluster at Novena which includes premium private healthcare providers such as Mount Elizabeth Novena Hospital, Tan Tock Seng Hospital, as well as neighbouring specialist centres like Novena Specialist Centre, Novena Medical Centre and Royal Square.