HONG KONG movie superstar Jackie Chan is among a group of home owners who could stand in the way of what is shaping up as Singapore’s priciest collective sale in per sq ft (psf) terms.
Their development Grangeford Apartments, along with Elizabeth Heights, The Ardmore and Trendale Tower, is poised to set new benchmarks for the red-hot collective sale market, if it achieves its asking price.
Grangeford, located in prime Grange Road, was the first among them to ask for at least $2,000 psf per plot ratio (psf ppr). The latest to hit the market, Trendale Tower in Cairnhill Road, is asking for a whopping $2,200 psf ppr.
While more and more condominiums are asking for higher and higher prices, the collective sale record is still held by The Parisian in Angullia Park. It was sold in January for $1,735 psf ppr.
Grangeford, a 99-year leasehold property, is still 5 per cent short of the minimum 80 per cent approval needed from the owners for the sale to proceed.
That 5 per cent is represented by just 11 owners and so far the movie star has yet to agree to the sale, which is by way of an expression of interest. Chan’s agent will agree to sell on Chan’s behalf if the ‘price is right’.
Marketing agent CB Richard Ellis (CBRE) launched the exercise with a guidance price of $660 million in late April.
That amounts to $2,016 psf ppr, including an estimated premium of $97.8 million to upgrade to a fresh 99-year lease. The condominium was completed in 1981, with 192 two to three-bedroom units and one shop unit.
Chan owns a 1,755 sq ft three-bedroom unit and would stand to get $3.8 million for his apartment, if Grangeford achieves its asking price. Owners of the smaller 1,173 sq ft units will stand to get $3 million each, and the shop owner, $3.1 million.
Chan bought his apartment for only $1.3 million back in 1996, according to his agent Simon Kwan who owns two adjoining units at Grangeford. He also manages the actor’s properties in Singapore, which includes shophouses in Tanjong Pagar.
In fact, he recently renovated Chan’s Grangeford unit for about $65,000 last year. The unit is being rented out at $6,000 a month.
Mr Kwan said Chan is aware of the rising market in Singapore and has left it to him to decide the sale on his behalf. ‘As his managing agent, I did request the sale agreement for him about three months ago but the market picked up again,’ he said.
‘I like the area. It’s wonderful,’ Mr Kwan said, adding he would not sell his own units for ‘personal reasons’.
‘But let them come back to us. If the price is right, I will still advise him (Chan) to sell.’
Grangeford’s reserve price has been revised upwards more than once.
‘Because of the delay, the price went up,’ said Mr Kwan. Last September, the estate was going for just $280 million - far less than half the asking price now.
Chan sold a unit at The Claymore but would have been in line for a jackpot there had he held on - as some owners at the the condominium are attempting to mount a collective sale
Mr Jeremy Lake, executive director of investment properties at CBRE, said the firm is negotiating with four developers and ‘may seal the Grangeford deal in two to three weeks’ time’.
In the collective sale boom so far this year, about 44 collective sale deals worth $7.385 billion have been done, according to data from Credo Real Estate.
This is close to the value of the 78 deals done last year - $7.85 billion, it said.
Credo says it is still discussing the deal for the freehold Elizabeth Heights in Cairnhill Road, which is asking for $2,100 psf ppr.
The expression of interest exercise for The Ardmore and Trendale Tower has yet to close.
Source : Straits Times - 12 Jun 2007
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