FAR East Organization and Orchard Parade Holdings will buy Pastoral View (through an enbloc sale) and the next door plot being sold by OCBC for $122 million.
This works out to about $847 per square foot per plot ratio (psf ppr) inclusive of a marginal development charge (DC). Both freehold sites have a combined land area of 51,395 sq ft and can be redeveloped into a new condo with about 140 units averaging 1,000 sq ft. The District 11 properties near Novena MRT Station are zoned under Master Plan 2008 for residential use with a 2.8 plot ratio and 36-storey allowable height.
The breakeven cost for a new condo on the site could be around $1,300 psf. In July, CDL released its 368 Thomson condo at an average price of about $1,350 psf.
‘The cooling measures introduced by the government has resulted in some developers turning cautious but many are still keen on prime freehold land parcels with good attributes’ said Tan Hong Boon, deputy managing director of Credo Real Estate. The company handled the sale of the two properties through a tender which closed last month.
Credo did not give a split of the $122 million between Pastoral View and the plot sold by OCBC. But, Mr Tan said Pastoral View’s reserve price has been met. Pastoral View’s sale is subject to approval of the Strata Titles Board as owners’ unanimous consent is not secured. Owners of Pastoral View’s stand to receive gross sale proceeds ranging from slightly over $1 million for studio apartments to $4.37 million for the penthouse. That is 80-90 per cent more than what the units would have sold for individually, according to Mr Tan.
OPH said it will be taking stakes of 30 per cent in the Bassein Road properties.