ANNOUNCING its second land acquisition this week, City Developments, the listed property arm of Singapore’s Hong Leong Group, said yesterday it has bought Hong Leong Garden Condominium in the West Coast area through a $131.5 million collective sale.
The deal is subject to the approval of the Strata Titles Board.
CityDev did not provide the unit land cost inclusive of development charges (DC) in its statement to the Singapore Exchange. However, sources have told BT that the DC is estimated at about $23 million - subject to confirmation of the development baseline.
Based on this figure, CityDev’s unit land price works out to about $363 psf of potential gross floor area including DC.
Ivy Lee Realty brokered the deal through a private treaty deal, following the close of a tender for the site in October last year.
The 956-year leasehold site measures about 266,076 square feet and is zoned for residential use with a 1.6 plot ratio - ratio of maximum allowable gross floor area to land area - and 12-storey maximum height, under Master Plan 2003.
Based on this, the plot can be redeveloped into a 370-unit residential project, CityDev said.
The 25-year-old Hong Leong Garden Condominium site was originally developed in the 1980s by the Hong Leong Group. It currently houses 180 residential units in six blocks.
While this phenomenon of developers buying back a project they developed years ago with the aim of redeveloping the site is still relatively uncommon in Singapore, it may gather pace going ahead, say some industry players.
DTZ Debenham Tie Leung director Tang Wei Leng said: ‘It may become more common as more collective sales take place, as some of the original developers of these projects are still active players in the market today, for example, Hong Leong/City Developments and Far East Organization.’
Such a trend would reflect developers’ ’sentimental attachment’ to projects they developed years ago, as well as their confidence in the particular location. ‘They’ve tasted success during the first round of developing the site, so they may have the inclination to embark on redeveloping the site,’ Ms Tang added.
CityDev said its successful bid for Hong Leong Garden Condominium will strengthen its presence in the West Coast vicinity.
In 2000, the property group purchased the nearby Tat Lee Court site for $333 psf per plot ratio including DC. This has since been redeveloped into Monterey Park Condominium.
In 2003, CityDev teamed up with CapitaLand for the purchase of the former Parkview Condominium site for $286 psf ppr including DC. This site will be developed into a 493-unit residential project which is scheduled for launch in the first half of this year.
Earlier this week, City Dev and Wing Tai announced their joint acquisition of Anderson 18 for $477.7 million, or $1,650 psf ppr, including an estimated $40.11 million development charge.
Source : Business Times - 8 Mar 2007
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment