$27.5m en bloc sale in Balestier

The property collective sale market got an early boost with the year’s first successful deal for the freehold three-storey industrial terrace factory building at No 6 Jalan Ampas, off Balestier Road.

The three-storey strata-titled industrial factory building sits on a 27,838 sq ft land plot. Upon rezoning, the site may be redeveloped into a freehold high-rise residential development with a gross floor area of approximately 77,948 sq ft.

The property was sold for $27.5 million to a private developer, said to be an experienced player in the industrial property sector, although this will be its first foray into residential development.

Based on the selling price and an estimated development charge of $18.7 million for the rezoning of the site to residential use and a gross plot ratio of 2.8, this works out to be about $593 per square foot per plot ratio.

Analysts said that the completed development on the site could be sold at a price range of about $1,100 psf to $1,200 psf after factoring in profits as well as marketing and financing costs.

The owners of the four factory units launched the collective sale after the Urban Redevelopment Authority’s announced in 2008 that it was prepared to consider rezoning the site for residential use.

Tender for the property closed Dec 10 last year and it had attracted five offers and five other interests from developers, said Mr Tan Hong Boon, deputy managing director of Credo Real Estate, the marketing agent for the en bloc sale.

“Balestier has, over the years, emerged as a popular residential district that enjoys the convenience of being geographically central and having a whole host of commercial amenities along the main road,” Mr Tan said. The site is near Shaw Plaza that houses a major supermarket, multiplex cinemas, banks and a host of other commercial establishments.

Source : Today – 4 Feb 2010