The Business Times - March 6, 2013
$149.13m bid wins tender after announcement of property cooling measures
ULTRA Mansion, a 13-storey freehold development about 500m from Novena MRT station, has been sold through a collective sale for $149.13 million.
The price works out to $1,170 per sq ft (psf) of potential gross floor area, with no development charge payable.
The buyer is Fantasia (Novena) Pte Ltd, a subsidiary of the listed Hong Kong group Fantasia Holdings. It put in the highest of three bids.
The 45,512 sq ft site at 4, Derbyshire Road is zoned for residential use, with a 2.8 plot ratio, which is the ratio of maximum gross floor area to land area.
The site can potentially yield about 140,000 sq ft of gross floor area, inclusive of a 10 per cent bonus gross floor area allowance. This amount of space makes for about 170 one- and two-bedroom apartments of between 600 sq ft and 900 sq ft each.
Ultra Mansion now comprises 48 apartments of about 1,600 sq ft each in a single block. The owners will receive about $3.1 million per unit, with the sale subject to approval from the Strata Titles Board.
The sale was brokered by Cushman & Wakefield.
The tender closed on Jan 18, after the announcement of the latest property cooling measures.
The Business Times understands that Cushman first launched a tender in February last year, with the reserve price set at about $160 million.
This time around, the reserve price was said to have been lowered to $144 million.
Cushman & Wakefield noted that Novena is traditionally considered by investors and homebuyers as an alternative to Orchard Road as a commercial and medical hub.
Toby Dodd, country manager at Cushman, said that the sale of Ultra Mansion reflects positive sentiment from overseas developers in the residential market here despite the cooling measures.
Christina Sim, director of capital markets at Cushman, said that with commercial and business complexes around the area, apartments in Novena traditionally give yields of 3.5 per cent to 4 per cent - more attractive than for properties in Districts 9 and 10 (2.5 per cent to 3 per cent).
The appeal of Novena/District 11 was evident in last December's sale of a white site in Irrawaddy Road for a record bid of $1,632 psf per plot ratio from a Hoi-Hup Sunway consortium.
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