Friday, July 27, 2012

Site for GCBs, two other properties up for grabs

Business Times: Thu, Jul 26

A PLOT of land gazetted for good class bungalows (GCBs) in the Holland Rise area has been put up for sale by tender, with a target selling price of between $60 million and $65 million.

This represents a price of between $1,132 and $1,226 per square foot (psf) for the sprawling vacant 53,000-sq-ft plot. The site is one of three properties Credo Real Estate is selling on behalf of a family-owned company that wants to stay anonymous.

Also up for grabs is a 20,133-sq-ft freehold industrial site at New Industrial Road zoned Business 1, and a former cinema space at Sultan Plaza, which used to accommodate as many as 1,050 seats. All three properties are for sale by tender. Credo said the plot of land for GCBs is "conveniently located" and is about 400 metres from Holland Village and the Holland Village MRT Station.

Said Karamjit Singh, managing director of Credo: "It is not common for a good class bungalow plot to be located within walking distance to an MRT station."

The land has been subdivided into three plots, with two of the plots having access from East Sussex Lane, and one from Holland Rise. A buyer can choose to join the three plots and develop one bungalow, or reconfigure the subdivision of the plots.

GCBs are at the highest end of the home spectrum. There are about 2,400 of them in Singapore in 39 gazetted areas, such as Nassim, Dalvey and Tanglin.

In March, a 40,679-sq-ft bungalow at Ridout Road changed hands for $60.6 million, or $1,490 psf. The record for the most expensive home is still held by a house on a 41,852-sq-ft site in Leedon Park that sold in December 2010 for $61.4 million.

For the industrial site, Credo said the seller was expecting offers in the region of $22 million to $25 million.

This works out to about $437 to $497 per square foot per plot ratio for the site, which has gross floor area of 503,332.5 sq ft based on a plot ratio of 2.5. It is located as part of the large and central Paya Lebar/MacPherson/Tai Seng industrial estate, said Credo.

"There is limited supply of freehold redevelopment sites for industrial development in central locations. Although more industrial sites have been released under the Government Land Sales programme, they are predominantly located in the outlying areas and come with shorter tenures of 30 or 60 years," said Mr Singh. "In addition, strata subdivision of the new development (for selected GLS sites) is not allowed for a period of 10 years from the date of TOP (temporary occupation permit)".

In April last year, 18 New Industrial Road changed hands at a land rate of approximately $430 psf ppr, noted Mr Singh.

Described by Credo as "a rare offering", the third property is a 99-year-leasehold former cinema space at Sultan Plaza, which went by the name Golden Sultan in the 1980s. The sellers have indicated an asking price of $20 million for the property.

The commercial space straddles parts of the 4th to 7th levels of Sultan Plaza and has a strata area of 37,189 sq ft with a net floor area of about 16,738 sq ft. The asking price works out to $1,195 psf on the net lettable area.

The property is tenanted to a karaoke night club operator after written permission was granted by the Urban Redevelopment Authority in 2002 for a change in use to a karaoke lounge.

The buyer can choose to purchase the property and convert it into commercial units, an entertainment centre or an auditorium, subject to approval from the authorities when vacant possession is obtained.

The leasehold property's tenure came into effect from May 2, 1978, with some 65 years remaining under the lease.

The tenders for the sites at Holland Rise and 27 New Industrial Road close on Aug 23 at 2.30pm, while the tender for the cinema space at Sultan Plaza closes on Aug 28 at 2.30pm.

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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