Grange Heights and Cairnhill Astoria near Orchard Road try for en bloc sale again

Two freehold condominium developments near the prime Orchard Road district will make another bid at an en bloc sale, Colliers International said on Monday (Sep 17).

Grange Heights in St Thomas Walk will be launched for sale at S$820 million, while Cairnhill Astoria will be put on the market for S$196 million.

This is the second attempt at a collective sale by Grange Heights owners. Depending on the size of their property, each owner could receive between S$5.24 million and S$10.76 million from the sale, Colliers said.

The reserve price works out to a rate of S$1,948 per sq ft per plot ratio (ppr) after factoring in the 10 per cent bonus balcony gross floor area. No development charge is payable for the intensification of land use.

Built in the mid-1970s, the Grange Heights comprises 114 apartments and maisonettes as well as six penthouses with sizes ranging from 1,884 sq ft to 4,575 sq ft. The site is zoned residential and has a gross plot ratio of 2.8 under the Master Plan 2014.

The new redeveloped site will have a proposed total gross floor area of 420,964 sq ft and can be built up to 36 storeys. It could yield 388 new units at an average size of 1,033 sq ft each, Colliers said.

The tender for Grange Heights will close at 3pm on Oct 29.

Cairnhill Astoria in Cairnhill Rise will be relaunched for collective sale after it was originally put on the market on May 17.

Depending on the size of their property – ranging from 700 sq ft to 6,060 sq ft – each owner could potentially receive between S$2.28 million and S$14.26 million from the sale.

The reserve price of S$196 million, unchanged from the original launch price, works out to a rate of S$1,933 psf ppr, after factoring in the 10 per cent bonus balcony gross floor area and an estimated development charge of S$33.9 million.

Cairnhill Astoria comprises 36 apartments in a high-rise residential tower and a low-rise block. The 38,615 sq ft site is zoned residential and has a gross plot ratio of 2.8 under the Master Plan 2014.

Subject to approvals from authorities, the site can be redeveloped to offer about 150 apartments, based on an average unit size of 753 sq ft, Colliers said.

“The development is ageing and the owners are keen to sell the property,” said Mr Paul Kwek, vice-chairman of the Cairnhill Astoria collective sale committee.

“We understand that the environment has become a lot more uncertain following the introduction of new cooling measures in July. The owners are mindful of the cautious market sentiment and may be more realistic in their pricing expectation.”

The tender for Cairnhill Astoria will close at 3pm on Oct 17.

Singapore’s en bloc market took a hit in July when new property cooling measures were announced. The curbs include a non-remissible 5 per cent Additional Buyer’s Stamp Duty for developers buying en bloc properties for redevelopment.

Residential developers also face an increase in the remissible ABSD from 15 per cent to 25 per cent, which can only be waived if all the units in the new development are sold within five years of acquiring the site.

Source: Channel NewsAsia -17 Sep 2018

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