OWNERS of two residential developments on Cavenagh Road are joining forces to sell their apartment buildings as one large collective en bloc sale site.
The owners of the 60-unit Clemenceau Court have decided to launch their site next for sale by tender in conjunction with an invitation to make an offer for the neighbouring 18-unit Cavenagh Mansion.
Marketed by Charles Chua of Propnex, the Clemenceau Court site measuring 38,131 sq ft is going for about $75 million while owners of Cavenagh Mansion (19,813 sq ft) are asking for $27 million.
Mr Chua has worked out that the possible amalgamation to the sites makes them more attractive.
With a plot ratio of 2.1, Clemenceau Court works out to be $940 per sq ft per plot ratio (psf ppr) including development charge. Even with the cost of an available 9,688 sq ft of state land for $4.9 million, it will still cost $798 psf ppr.
With the same 2.1 plot ratio, Cavenagh Mansion will cost $652 psf ppr. With the cost of an available 5,059 sq ft of state land, it will cost $569 psf ppr.
Together, the combined site lowers the price to $642 psf ppr. In such a scenario, the site could yield 164 units of 1,000 sq ft each and the breakeven price for a new development would be $850-900 psf.
Source : Business Times - 18 Aug 2006
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