PERENNIAL Real Estate Holdings has entered into a joint venture (JV) with Qingjian Group to jointly develop the former Goodluck Garden residential site in Singapore.

Perennial said on Wednesday that it has through its subsidiary, PRE 9, entered into a 40-60 JV with China-based Qingjian Group of companies - comprising subsidiaries of Hong Kong-listed CNQC International Holdings and its minority partners - to jointly develop the site.

A freehold residential site, it has a land area of about 360,130 square feet (sq ft), and is located at No 32 - 46 on Toh Tuck Road.

Goodluck Garden, a former 210-unit residential development, was sold collectively to subsidiaries of CNQC for an acquisition price of S$610 million on March 8.

Perennial said that based on Urban Redevelopment Authority's 2014 MasterPlan, the site is zoned for residential use and has a gross plot ratio of 1.4 times, which translates to a maximum permissible gross floor area (GFA) of about 504,182 sq ft or 554,605 sq ft (based on the maximum permissible GFA and including a 10 per cent bonus balcony GFA).

Accordingly, the acquisition price translates to a land price of about S$1,210 per sq ft per plot ratio (based on the maximum permissible GFA).

"Due to a high development baseline, no development charge is payable for the 10 per cent bonus balcony GFA, thus providing certainty to the land price which works out to a lower S$1,100 per sq ft per plot ratio."

Perennial added that this "prime project" would mark its maiden foray into pure-play residential development.