Friday, May 11, 2012

Top bid of $233.5m for EC site next to Tampines Trilliant

Business Times: Fri, May 11
AN executive condominium (EC) plot next to the Tampines Trilliant project yesterday received a top bid of $233.5 million, or $373.40 per square foot per plot ratio (psf ppr), the second highest land price for an EC site since land sales resumed in 2010.

The joint bid, which was put up by Singxpress Property Development, Amara Holdings' Creative Investments and Kay Lim Realty, was 4.9 per cent lower than the $392.45 psf ppr the Tampines Trilliant site achieved in April last year.

It beat the second highest bid ($368.88 psf ppr), a joint effort put up by Maxdin, BPK Development, United Infrastructure and LMG Realty, by a mere 1.2 per cent. Maxdin is a subsidiary of UE E&C Ltd, which, in turn, is part of the United Engineers Group.

"The bullish bids were likely spurred by several locational attributes. For instance, the site is in close proximity to established educational institutions including Temasek Polytechnic, United World College of South East Asia and ITE College East. It is also within 10 to 15 minutes' walking distance from the Tampines Regional Centre," said Chia Siew Chuin, director of research and advisory at Colliers International.

With an estimated break-even cost of about $680-$700 psf, the completed EC could possibly sell from $800 psf, added Ms Chia.

Said Nicholas Mak, head of research at SLP International Property Consultants: "This indicates that the developers share the same opinion that this is an attractive site which the development can be launched at above $750 psf."

He added that some of the bidders also took part in the Woodlands EC tender that closed one week ago. They include Maxdin Pte Ltd, EL Development Pte Ltd, White Haven Properties Pte Ltd and MCL Land.

Based on an estimated breakeven price of $670 to $700 psf, this "could provide the developer with a decent margin", he added...
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Martin Koh/ Sherry Tang
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