3 developments back with collective sale bids

Owners of units at Grange Heights (above) and Cairnhill Astoria have launched their second attempt at a collective sale.
Dated: 18-Sep-2018

Laguna Park launched its mega collective sale yesterday with a reserve price of $1.48 billion, while two prime Freehold residential sites in District 9 near Orchard Road are taking another stab at a collective sale.

The two Freehold sites are Grange Heights in St Thomas Walk, which will be put up for public tender for $820 million, and Cairnhill Astoria in Cairnhill Rise, to go for $196 million, said Colliers International.

For Laguna Park, together with an additional differential premium of about $453.5 million for the intensification of the site to a plot ratio of 2.8 and a lease top-up premium estimated at $416.1 million for a fresh 99-year lease, this translates to a land rate of $1,253 per sq ft per plot ratio (psf ppr), subject to the authorities' approval.

Knight Frank Singapore's executive director and head of investment and capital markets Ian Loh said the Laguna Park sites offers both panoramic sea views and the convenience of an MRT station which is set to be completed by 2023.

The tender for Laguna Park will close on Nov 1, at 3 pm.

For Grange Heights, this marks the second attempt at a collective sale by its owners.

Depending on the size of their property, each owner can potentially receive between $5.235 million and $10.762 million from the successful sale of the development.

The reserve price works out to a land rate of $1,948 psf ppr after factoring in the 10 per cent bonus balcony gross floor area (GFA). No development charge is payable for the intensification of land use.

The redevelopment site - spanning 12,697.7 sqm - is zoned residential and has a gross plot ratio of 2.8 under the Urban Redevelopment Authority's Master Plan 2014. The new development will have a proposed total GFA of 39,108.9 sqm and a building height control of up to 36 storeys.

The tender for Grange Heights will close at 3pm on Oct 29.

As for Cairnhill Astoria, the pricing for the site remains unchanged from when it was originally put on the market on May 17.

Mr Paul Kwek, vice-chairman of the Cairnhill Astoria collective sale committee, said: "The development is ageing and the owners are keen to sell the property. We understand that the environment has become a lot more uncertain following the introduction of new cooling measures in July. The owners are mindful of the cautious market sentiment and may be more realistic in their pricing expectation."

The owners' reserve price reflects a land rate of $1,933 psf ppr, after factoring in the 10 per cent bonus balcony GFA and an estimated development charge (DC) of $33.903 million following the latest revision to DC rates.

Sitting on a 3,587.5 sqm site, Cairnhill Astoria comprises 36 units across a high-rise residential tower and a low-rise block. Under the Master Plan 2014, the land parcel is zoned residential and has a gross plot ratio of 2.8. Subject to relevant approvals from the authorities, the site can be redeveloped to offer about 150 apartments, based on an average unit size of 753 sq ft.

Depending on the unit size, each owner at Cairnhill Astoria could get between $2.275 million and $14.261 million upon successful completion of the transaction.

The collective sale tender for Cairnhill Astoria will close at 3pm on Oct 17.

Source: Straits Times