BT: City Towers' asking price doubles in 3 mths - 25 Jul 07
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Dan @ 94 777 977
Jul 26, 2007, 3:42:22 PM7/26/07
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July 25, 2007
City Towers' asking price doubles in 3 mths
By ARTHUR SIM
CITY Towers on Bukit Timah Road is for sale by tender with an
indicative price of $458.7 million, almost double the price indicated
just three months ago.
An expression-of-interest exercise was held in April by marketing
agents Knight Frank. Senior manager (investment sales) Steven Tan
said it drew about five bids.
At the time, only 75 per cent of the owners had agreed to proceed
with a collective sale.
'The owners believe the new indicative price is reflective of market
prices,' said Mr Tan. The minimum 80 per cent approval from owners to
sell has now been obtained.
The development is on 104,535 sq ft of freehold land, which is zoned
for residential use at a plot ratio of 2.1, with a height restriction
of 24 storeys.
Mr Tan says the successful developer can build an estimated 183 units
of average 1,200 sq ft each.
Together with an estimated development charge of about $2.2 million,
the indicative price reflects a land value of $2,100 per square foot
per plot ratio.
As the current development is close to the maximum gross floor area,
the development charge is only slightly more than the estimated $1.7
million it would have been three months ago before the rates were
revised.
The break-even price is estimated at $2,870 psf, and Mr Tan expects
the new units to sell for at least $3,000 psf.
On East Coast Road, Savills Singapore is marketing 48 strata-titled
commercial units at EastGate, a 52-unit freehold development, for
sale en bloc by expression of interest.
'All 48 units are currently near full occupancy and are generating
good cash flows from its rental collections,' said Steven Ming,
director (investment sales) of Savills Singapore. The freehold
property has an indicative price of $80.3 million or $1,350 psf,
based on current net lettable area.
'Investors and buyers have begun to look at opportunities beyond the
traditional CBD locations for good commercial buildings that could
still present good upside potential in terms of both rental rates and
capital value appreciation,' said Mr Ming.
Potential average rentals are expected to be $5 psf.
City Towers' asking price doubles in 3 mths
By ARTHUR SIM
CITY Towers on Bukit Timah Road is for sale by tender with an
indicative price of $458.7 million, almost double the price indicated
just three months ago.
An expression-of-interest exercise was held in April by marketing
agents Knight Frank. Senior manager (investment sales) Steven Tan
said it drew about five bids.
At the time, only 75 per cent of the owners had agreed to proceed
with a collective sale.
'The owners believe the new indicative price is reflective of market
prices,' said Mr Tan. The minimum 80 per cent approval from owners to
sell has now been obtained.
The development is on 104,535 sq ft of freehold land, which is zoned
for residential use at a plot ratio of 2.1, with a height restriction
of 24 storeys.
Mr Tan says the successful developer can build an estimated 183 units
of average 1,200 sq ft each.
Together with an estimated development charge of about $2.2 million,
the indicative price reflects a land value of $2,100 per square foot
per plot ratio.
As the current development is close to the maximum gross floor area,
the development charge is only slightly more than the estimated $1.7
million it would have been three months ago before the rates were
revised.
The break-even price is estimated at $2,870 psf, and Mr Tan expects
the new units to sell for at least $3,000 psf.
On East Coast Road, Savills Singapore is marketing 48 strata-titled
commercial units at EastGate, a 52-unit freehold development, for
sale en bloc by expression of interest.
'All 48 units are currently near full occupancy and are generating
good cash flows from its rental collections,' said Steven Ming,
director (investment sales) of Savills Singapore. The freehold
property has an indicative price of $80.3 million or $1,350 psf,
based on current net lettable area.
'Investors and buyers have begun to look at opportunities beyond the
traditional CBD locations for good commercial buildings that could
still present good upside potential in terms of both rental rates and
capital value appreciation,' said Mr Ming.
Potential average rentals are expected to be $5 psf.
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