En bloc sales: Pearlbank aims for S$728m, Parkway Mansion targets S$138m

Condominium projects Pearlbank Apartments and Parkway Mansion will launch separate tenders for collective sale on Nov 16, marketing agent Colliers International announced on Wednesday.

Pearlbank, a 37-storey development in the Outram neighbourhood, has a reserve price of S$728 million, which translates to a land cost of about S$1,505 per square foot (psf) per plot ratio (ppr), after factoring in an upgrading premium of approximately S$195 million for the lease top-up. There is no development charge payable.

Parkway, a 32-unit condominium near the Katong district, has an indicative price of S$138 million, which excludes an estimated development charge of approximately S$21 million payable to the state for the intensification of land use. Taken together, the indicative price and the development charge translate to a land rate of S$1,454 psf ppr.

"This compares favourably against the land rate of S$1,515 psf per plot ratio for Amber Park," Colliers said.

Pearlbank is an iconic horsehoe-shaped building located near the central business district (CBD) area. It comprises of 288 units, including eight commercial units, and has a 99-year leasehold tenure with effect from June 1970.

While the development has a gross plot ratio of 7.2 under the 2014 Master Plan, it has an existing gross plot ratio of 7.4479.

According to Colliers International, the site has the potential to be re-developed into a residential development with a total gross floor area of 56,998.8 square metres, comprising 730 new residential units with an average size of 800 sq ft, subject to approval from the relevant authorities.

Apartment owners, whose unit sizes range from 123 sq m to 371 sq m, stand to receive minimum gross prices of between S$1.8 million and S$4.9 million. These proceeds are about 55 per cent above the last transacted price in September 2017, Colliers said.

Meanwhile, owners of commercial units with sizes ranging from 65 sq m to 523 sq m can potentially receive S$1.2 million to S$6.9 million, the company said.

For Parkway, this is the third collective sale attempt by the development's owners. Depending on the size of their property, each owner could receive between S$4.2 million and S$4.4 million in gross proceeds from the sale, Colliers said. Apartment sizes at the 17-storey development range from 169 sq m to 181 sq m.

Colliers added that under the 2014 Master Plan, the 3,620.9 sq m site is zoned residential and has a gross plot ratio of 2.8, with a potential total gross floor area of 10,138.5 sq m.

Tenders for Pearlbank Apartments and Parkway Mansion will close at 3pm on Dec 19 and Dec 13 respectively.

Managing director at Colliers International, Tang Wei Leng said: "Sentiment in the residential market has improved following a down cycle that spanned four years. New home sales have been brisk this year and prices picked up in third quarter, possibly marking a positive turn in the market."

"We expect the two tenders to attract keen interest among both local and foreign developers amid the strong demand for development sites via the Government Land Sales programme and the collective sale market," she added.