Grand Tower fetches $1,376 psf ppr

Grand Tower at Moulmein Rise has been sold through a collective sale for $88.5 million or about $1,376 per square foot of potential gross floor area. No development charge is payable.

The buyer is 27MR Pte Ltd, a fully-owned unit of boutique developer New Century Real Estate, which developed 8 Rodyk off River Valley Road.

The 21,742 sq ft freehold site can potentially be redeveloped into a high- rise apartment development with a maximum GFA of about 64,310 sq ft, which is the existing verified GFA – exceeding the 60,878 sq ft based on the 2.8 plot ratio for the site in Master Plan 2008. A new project can generate over 70 apartments averaging 800 sq ft.

The breakeven cost for a new project is estimated at $1,900-2,000 psf, said Savills Singapore, which brokered the sale of Grand Tower through a tender which closed on July 28.

An earlier tender closed on April 6 without the site being sold. The latest tender drew three bids and expressions of interest, said Savills’ senior director of investment sales Suzie Mok. The reserve price has been exceeded slightly. The sale is subject to approval from Strata Titles Board.

The 33-year-old Grand Tower has 28 apartments of about 1,873 sq ft. Each owner stands to receive about $3.16 million or $1,688 psf on strata area – 53 to 69 per cent above the $1,000-1,100 psf the apartments could have fetched individually in the secondary market, said Savills.

Savills said Grand Tower marks the fourth collective sale it has brokered this year, after Newton View, Amber Towers and and Balmoral Condominium. The four deals add up to to $538.7 million.

Data from Credo Real Estate show that 34 collective sales totalling $1.89 billion have been inked year to date, against 36 deals worth $1.77 billion for full-year 2010.

Source: Business Times © Singapore Press Holdings Ltd

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