Gilstead Court relaunched for en bloc sale as owners decide on cutting reserve price

FREEHOLD Gilstead Court in the Novena-Newton enclave has been relaunched for sale by tender, marketing agent JLL said on Tuesday.

"Following the announcement of the July 2018 market cooling measures, and the Urban Redevelopment Authority's revised maximum allowable dwelling units in non-landed residential developments which affects Gilstead Court, the Collective Sale Committee (CSC) proposed to lower the reserve price from S$168 million to S$153 million," JLL said.

The almost nine per cent price cut was approved by those present at an extraordinary general meeting convened by the CSC, and owners supportive of lowering the reserve price have begun signing a supplemental agreement.

Nonetheless, for the change to take effect, the legal process requires approval from owners representing at least 80 per cent by total share value and by total floor area. As at Jan 29, owners representing more than 60 per cent have approved the lower reserve price, JLL said.

The original reserve price of S$168 million translates to a land rate of about S$1,590 per sq ft per plot ratio (psf ppr), or about S$1,486 psf ppr after factoring in the 7 per cent bonus balcony plot ratio.

Should more than 80 per cent of the owners agree to the lower proposed reserve price of S$153 million, the unit land rate will be reduced to S$1,448 psf ppr, or S$1,353 psf ppr with the 7 per cent bonus balcony plot ratio.

As there is a high development baseline for the site, development charge is not payable for the proposed redevelopment with the bonus gross floor area, JLL said.

Built around 1978, Gilstead Court comprises 24 apartments of 129 sq m each, and 24 apartments of 136 sq m each, totalling 48 units in three four-storey apartment blocks.

The 75,479 sq ft site is zoned 'Residential' with a gross plot ratio of 1.4. Located in District 11, the development is also near Novena MRT station, with schools such as St Joseph's Primary Institution (Junior) and Anglo-Chinese School (Junior) in the vicinity.

The tender for Gilstead Court closes at 2.30pm on Feb 27.