Jade Towers sold en bloc for $106m

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On April 27, 2012
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Straits Times: Fri, Apr 27

THE Jade Towers residential project in Upper Serangoon has been sold in a collective sale for $106.3 million – making it one of the largest en bloc deals inked this year.

Roxy Residential, a wholly owned subsidiary of mainboard-listed Roxy-Pacific, paid $807 per sq ft per plot ratio (psf ppr) for the 92,412 sq ft freehold site of 72 apartments. There is no development charge.

Marketing agent Savills Singapore said each owner will get gross proceeds of about $1.48 million, or $1,016 psf per strata area. This is about 40 per cent higher than the $700 psf to $750 psf price tag if the units were sold individually.

The Lew Lian Vale site off Upper Serangoon Road can accommodate up to 171 apartments, each at about 753 sq ft – about half the average size of the flats there now.

The breakeven cost is estimated to be between $1,200 psf and $1,250 psf, Savills added in a statement yesterday.

Ms Suzie Mok, its senior director of investment sales, noted that Jade Towers is the first pure residential collective sale exceeding $100 million since the introduction of the 10 per cent additional buyer’s stamp duty in December last year.

The measures require developers to build and sell all units on a site within five years or face the additional stamp duty.

‘Despite a slowdown in the number of pure residential collective sale transactions, sites offering strong locational attributes and priced right will continue to draw interest from developers,’ she said.

‘District 19 is fast catching up in popularity with the Telok Kurau residential enclave in District 15.’

Subject to confirmation, a rectangular freehold plot nearby could be redeveloped along with the site, bringing the total gross floor area to 131,702 sq ft.

Roxy-Pacific said in a separate statement that the sale, which is subject to Strata Titles Board approval, will be financed by internal funds and bank borrowings.

It is not expected to have a material impact on its consolidated earnings and net tangible assets per share of the company for the current financial year, it added.

Earlier this month, a smaller low-rise residential plot nearby – comprising Bartley Grove Apartments and three adjoining terraces – was also sold for $810 psf ppr.

The biggest collective sale deal inked this year was for mixed-use estate Tai Keng Court last month. Owners received $161.1 million for the freehold plot at the junction of Jalan Lokam and Upper Paya Lebar Road, which is $1,109 psf ppr.

Source: The Straits Times © Singapore Press Holdings Ltd

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