Versailles relaunches en bloc sale tender at lower price

Versailles, a 55-unit residential development, has been re-launched for en-bloc sale after an earlier attempt to find a buyer failed because bids did not reach the reserve price.

Jones Lang LaSalle, which is the sole marketing agent, said that the collective sale committee managed to seek a fresh mandate to reduce the reserve price and that it is now in a position to accept any offer above S$96 million.

That is a reduction of 9.3 to 14.5 per cent from the last asking price of S$105 million to S$110 million.

“We believe developers would be motivated to bid competitively as they know the sellers are pragmatic and willing to re-align their expectations to market conditions,” said Ms Yong Choon Fah, National Director of Investments at Jones Lang LaSalle.

The District 15 freehold site, which is near the Paya Lebar Central development, has a land area of approximately 53,073 sq ft and could potentially be built up to 16 to 18 storeys, subject to approval.

At S$96 million, the developer’s effective land cost translates to approximately S$1,007 per square foot per plot ratio, down from S$1,088 to S$1,133 psf ppr based on the allowable plot ratio of 2.1, including an estimated development charge of S$16.2 million.

Jones Lang LaSalle said the recent announcement of the relocation of the Paya Lebar Air Base to Changi, which is set to free up some 800ha of land for redevelopment options in the north-east and east of Singapore, should have a positive spillover effect for the area.

Source : Today – 12 Sep 2013

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