Waterfront View up for en bloc sale

Waterfront View up for en bloc sale

July 19, 2007
 PRIVATISED HUDC development, Waterfront View in Bedok, is up for collective en bloc sale for an estimated $380 million. If it finds a buyer, it will be the second such development after Far East Organization bought Amberville in Katong for $183 million in January.

Although the amount for the 809,037 sq ft Waterfront View site is high, the price based on the plot ratio of 2.5 is $240 per square foot per plot ratio (psfpr), lower than the $396 psfpr paid for Amberville.

A differential premium of about $102.2 million based on the new plot ratio of 2.5 and upgrading of the lease on the 20-year-old development back to 99 years will be paid by the future developer. At the asking price of $380 million, existing owners could get around $650,000 for their units, or about a 40 per cent premium over current market prices.

Tang Wei Leng, director of Investment Advisory Services at DTZ Debenham Tie Leung, which is also brokering the deal, says that 1,400 condominium units with an average unit size of 1,300 sq ft can be built.

She also estimates that the breakeven cost is about $450 psf. Last week, a 99-year leasehold condo site near Tanah Merah MRT Station was sold to NTUC Choice Homes/Wing Tai for $210 million or $318.50 psfpr.

The breakeven cost was estimated at between $520-530 psf.

Also for sale is a good class bungalow (GCB) site on Astrid Hill for about $13.5 million or about $500 psf. The 26,510 sq ft site cannot be subdivided into smaller plots as GCBs must be a minimum of about 15,000 sq ft.

Consequently, Steven Ming, director and head of Prestige Homes, which is brokering the deal, says such a large site for one house is quite ‘rare’. He also says that there are only 20 GCB plots on Astrid Hill.

There is an old two-storey house on the site but Mr Ming expects the future owner to tear it down. He adds that recent GCB transactions in the nearby Belmont Road area have also gone for about $500 psf. This is less than the asking price of around $600 in neighbourhoods like Jervois Hill.
Source : Business Times – 18 Apr 2006