Hawaii Tower, on Meyer Road, is expected to be launched for sale next week with an indicative price of $700 million, or approximately $1,401 psf ppr, including a $55 million development charge (DC).
The site, which sits on a 192,340 sq ft plot, is zoned for residential use with a gross plot ratio of 2.8 and a height of up to 36 storeys. It can be developed into a new condominium with approximately 430 units with an average size of 1,200 sq ft or 345 units averaging 1,500 sq ft.
Based on the $1,401 psf ppr land price, the breakeven cost could range between $1,950 psf and $2,100 psf. The all-in investment for the successful developer is expected to be around $1 billion.
CB Richard Ellis is marketing the property through a tender that will close on January 26.
This would be Hawaii Tower’s third attempt at an en bloc sale. The two previous attempts were in 2007. The initial effort began in the first half of that year, starting at $700 million and rising to $800 million; about 70-odd per cent consent level from owners was secured before the deadline for obtaining the minimum consent passed.
Another attempt was launched in late 2007 at $800 million but this soon petered out as market sentiment began to weaken and developers lost their appetite for land.