HO BEE Investment said yesterday it has agreed to buy a second site in the Orange Grove Road vicinity for $142 million in a collective sale.
The sale of the freehold The Orange Grove Condominium was done via a private treaty, and is subject to approval by the Strata Titles Board. Most owners of the condominium’s 31 apartments and maisonettes can expect to reap $4 million to $5 million from the sale, with the owner of the biggest unit getting about $8 million. The units range from 2,917 sq ft to 7,276 sq ft.
The prices they are expected to fetch are about 60 per cent more than what the owners can get from selling their units individually, according to Jones Lang LaSalle, which brokered the sale.
For Ho Bee, the total price included an estimated development charge of $11 million.
Its cost works out to $153 million or $970 per sq ft (psf) of potential gross floor area.
It said it plans to develop a luxurious 12-storey condominium on the 98,953 sq ft piece of land.
The condominium will have about 90 units ranging in size from 1,800 sq ft to 2,000 sq ft, it said. Jones Lang LaSalle said the break-even cost for the new project is $1,350 psf to $1,400 psf.
The Orange Grove condominium is located near high-end projects such as as Ardmore Park and The Ladyhill, where units have transacted at $1,800 psf to $2,000 psf in recent months, it said.
Prices of luxury homes and prime sites have risen substantially in the past year, though collective sales of prime sites have slowed from earlier in the year.
Ho Bee bought its first Orange Grove site in a collective sale in August last year for $66.3 million.
Including a development charge of $8.7 million, the price it paid worked out to just around $620 psf of potential gross floor area.
It is slated to launch the 60-unit condominium - a ‘very exclusive and upmarket low-rise development’ - in November or December, after its Sentosa Cove project.
Source : Straits Times - 23 Sep 2006
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