Char Yong sale may set new benchmark

A New benchmark for residential land in Singapore could be set, if an offer received for the collective sale of Char Yong Gardens materialises into a deal, industry sources say.

The freehold property, at the corner of Cairnhill and Hullet roads, is said to have received an offer for $1,800 to $1,850 per square foot of potential gross floor area recently from a joint venture (JV) that involves a fund, developer and other entities. The JV includes China and Singapore parties among others, BT understands.

However, the terms of the offer have yet to be ironed out, with some sources suggesting they may be difficult for the owners to accept. ‘There’s no guarantee of a deal, but if one does materialise at the price range being talked about, it will be a new benchmark,’ said a market watcher.

The $1,800-1,850 psf per plot ratio (psf ppr) that the JV is said to have offered for Char Yong Gardens would topple the current record of $1,735 psf ppr set by The Parisian at Angullia Park in December last year.

The $1,800-1,850 psf ppr price includes an estimated $48 million development charge.

Based on this price range, the absolute price payable to Char Yong Gardens’ owners would work out to $422 million to $435 million.

Char Yong Gardens has a freehold land area of about 93,300 sq ft and is zoned for residential use with a 2.8 plot ratio (the ratio of maximum potential gross floor area to land area) and a 20 storey maximum height. Jones Lang LaSalle is marketing the property.

Some market watchers note that $1,800 to $1,850 psf ppr is 17 to 20 per cent higher than $1,542 psf ppr that Sing Holdings paid in March for the nearby Hillcourt Apartments.

Other key collective sale sites transacted in the location over the past year or so includes Silver Tower (next to Char Yong Gardens) which was sold in September last year for $1,107 psf ppr to CapitaLand.

And there is the $880 psf ppr price that SC Global paid in the first half of last year for Hilltops Apartments at Cairnhill Circle and 16 adjoining terrace houses.

In fact, SC Global and CapitaLand are said to have indicated interest in Char Yong Gardens when its tender closed a few weeks ago. But their offers were probably below the reserve price set by owners, reckoned market watchers.

Source : Business Times - 1 May 2007