$24m en bloc sale of Lewis Court

The spate of collective sales continues as Lewis Court, a 12-unit walk-up apartment block, was sold to Hiap Hoe subsidiary Guan Hoe Development for $24 million through a collective sale tender.

Property consultant and collective sale specialist Credo Real Estate put the property up for sale last month following a 100-per-cent consensus from the owners.

“The purchase of Lewis Court is in line with our business strategy to go into the development of luxury residential properties that are distinct in design and preferred for their excellent locations and investment and investment prospects. We are very pleased with the success of the collective sale tender and are confident that the redevelopment of Lewis Court will promise better returns for all of Hiap Hoe’s stakeholders,” said Mr Teo Ho Beng, managing director and chief executive officer of Hiap Hoe.

The property along Lewis Road has a land area of 20,662 sq ft, and Hiap Hoe has the option to purchase the adjoining 1,011 sq ft of state land.

“Under the 2003 masterplan, the site is zoned for residential use with a plot ratio of 1.6 and a height restriction of 12 storeys,” said Credo executive director Tan Hong Boon.

The plot can be developed into a 22-apartment project with flat sizes averaging 1,500 sq ft. With the sale price of $24 million and an estimated $564,000 payable as land premium for the adjoining state land, it works out to about $708 per square foot per plot ratio (psfppr).

Should Hiap Hoe maximise the potential for 10-per-cent extra gross floor area allowed for balconies, the land cost drops to $645 psfppr as the development charge is not payable. With this, the break-even price for the new development is expected to be about $1,000 psf.

Lewis Court is the sixth successful collective sale for Credo Real Estate in the past nine weeks. Credo is also responsible for the collective sales of 57-66 Zion Road, East Coast Ville, 25-27 Amber Road, The Albany, and Mount Sophia Apartment.

Source : Weekend Today – 17 Feb 2007

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