Friday, July 27, 2012

Family firm selling sites for $110m

Straits Times: Thu, Jul 26

A FAMILY-OWNED company is putting a hotchpotch collection of properties up for sale, with buyers expected to fork out up to $110million in total.

Marketing agent Credo Real Estate said the three properties up for tender consist of a large vacant good-class bungalow plot at Holland Rise and East Sussex Lane, a freehold industrial redevelopment site at New Industrial Road, and a former cinema space at Sultan Plaza. A check with the Singapore Land Authority's Inlis system found that the properties belong to the Kalwani family, who are Singaporean citizens.

Mr Karamjit Singh, Credo's managing director, said the family firm is looking to consolidate a portfolio of properties acquired over the years.

'The three properties they have identified for divestment are quite diverse in nature, each appealing to a different catchment of buyers,' he said.

Credo said the 53,000 sqft good-class bungalow site has been subdivided into three plots, and the buyer can choose to amalgamate the plots or reconfigure the subdivision according to his preferred layout. The firm is hoping to sell the land for $60million to $65million, or $1,132 to $1,226 per sq ft (psf).

The 20,133 sq ft industrial site is expected to cost about $22million to $25million, or $437 to $497 psf per plot ratio, while the former cinema at Sultan Plaza has an asking price of $20million, or $1,195 psf on the net lettable area.

The former cinema went by the name Golden Sultan in its glory days in the 1980s and had more than 1,000 seats, Credo noted. The property is now tenanted by a karaoke nightclub operator.

'A purchaser could choose to convert the property into commercial units, an entertainment centre, or an auditorium, subject to approval from the authorities, when vacant possession is obtained,' Mr Singh said.

Industrial sites have also seen keen interest recently. Credo noted that a recent government land sale tender for an industrial site in Kaki Bukit Road saw healthy interest from eight bidders.

'Likewise, here, we expect strong interest from industrialists and end-users who may be looking for a well-located and freehold site where they can design their own building to suit their specifications,' Mr Singh said.

Separately, Roxy-Pacific Holdings said yesterday that it has entered into an agreement to buy freehold project Harbour View Gardens in Pasir Panjang Road for $33 million. It will redevelop the site in a joint venture with Macly Equity, Rich-Link Development and Mr Ken Yeo.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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