Business Times: Fri, Aug 03
CHATEAU Eliza, a freehold residential re-development site along Mount Elizabeth, is back on the market after three failed collective sale attempts.
This time, the owners are looking to lower the current reserve price of $108 million further, said marketing agent Knight Frank.
"After the last unsuccessful tender exercise that closed in May this year, the collective sale committee had commenced a process to seek a written mandate from at least 80 per cent of the owners to lower the current reserve price of $108 million," said Knight Frank's director, Ian Loh.
"To date, 79 per cent of the owners have agreed to lower the current reserve price, subject to a five-day cooling off period."
The property was first put up for collective sale in 2007 at an indicative price of about $115 million to $120 million. It was marketed under Credo Real Estate.
It was then launched for sale again in December last year by Knight Frank with a guide price of $111 million to $115 million and a third time in May this year at a reserve price of $108 million.
Based on the current asking price of $108 million, this works out to about $2,042 psf per plot ratio (psf ppr) based on the proposed gross floor area (GFA) of 52,887 sq ft that a new development could build on the site. No development charge is payable.
With an additional 10 per cent balcony area, it translates to $1,925 psf ppr, based on the potential GFA of about 58,176 sq ft with a development charge of some $4 million payable.
According to Knight Frank, breakeven cost is expected to be between $2,600 psf and $2,650 psf.
Located just off Orchard Road, Chateau Eliza comprises 37 apartments of 829 sq ft to 3,337 sq ft, on a land area of about 18,000 sq ft. Under the 2008 Master Plan, the land is zoned for residential use with a plot ratio of 2.8.
Mr Loh said new residential apartments in the vicinity such as freehold Helios Residences, and Scotts Tower, which has a 103-year tenure, are mostly transacted in the range of $3,200 to $3,800 psf since the beginning of the year.
"Chateau Eliza is probably one of the few high-rise residential sites off Orchard Road where the gross development value is less than $200 million," he added.
The tender will close on Aug 14 at 3pm.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)