SEA BREEZE APARTMENTS

Sea Breeze apartments sold for $53.8m

July 27, 2007 The Sea Breeze apartments on Joo Chiat Road have been sold for $53.76 million, which marketing consultant Jones Lang LaSalle (JLL) believes to be the highest price yet achieved in the area.
At the transacted price, the 56,376 sq ft site, which has a plot ratio of 2.1, sold for approximately $454 psf per plot ratio (ppr). There is no development charge payable, as a result of the high baseline.
Sea Breeze was sold to Grovehill Pte Ltd, whose directors are linked to the Tiong Aik Group whose last project was the 120-unit The Inspira at Arnasalam Chetty Road.
Sea Breeze can be redeveloped into an 88-unit condominium with a gross floor area of 118,391 sq ft.
JLL regional director and head of investments Lui Seng Fatt said that owners of the existing 56-unit apartments enjoyed a 50 per cent premium over current market prices.
The new development could be launched at an average price of between $850 and $900 psf, he said.
In another proposed deal, Tulip Garden, at the junction of Holland Road and Farrer Road, has been launched for collective sale through expressions of interest. The 20-year-old, 164-unit development is located on a 316,709 sq ft site with a plot ratio of 1.6.
Marketed by Savills Singapore, director Steven Ming said the indicative price guide is $900 psf ppr including development charge. This would give the site a price tag of about $456 million.
Based on the plot ratio, about 253 condo units of 2,000 sq ft in size, or 316 units of 1,600 sq ft, can be built. Mr Ming said almost 80 per cent of the residents have agreed on the proposed collective sale.
At the asking price of $456 million, the break even price is $1,250-$1,300 psf. The estimated launch price could be around $1,500.
Mr Ming said average prices for recent launches nearby, like Ford @ Holland and Sixth Avenue Residences, are $1,200 psf and $1,100 psf respectively.
In Tampines, a 22-year-old former HUDC development, Tampines Court, has been put up for collective sale with an indicative value of $527 million, inclusive of development charges and differential premium of about $107 million.
It is marketed by Dennis Wee Group. Investment sales director Jimmy Teng said the 702,458 sq ft site has a plot ratio of 2.8 and a potential gross floor area of at least two million sq ft.
‘The successful developer could build about 1,700 units with an average size of 1,250 sq ft,’ he said, adding that developers also have the option to bid for one of the two subdivided parcels.
Source : Business Times – 23 Jan 2007