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HighPoint jostles for District 9 en bloc deal
PRIME freehold site HighPoint has been launched for collective sale for S$550 million, joining other District 9 developments jockeying for sale.
The property, which was completed in 1974, sits on a cul-de-sac plot of approximately 47,606 sq ft on Mount Elizabeth Road.
In the Urban Redevelopment Authority's Masterplan 2014, the site is zoned as "residential" with a height control of up to 36 storeys.
The existing gross floor area (GFA) stands at around 211,976 sq ft, equivalent to a plot ratio of around 4.45. No development charge is payable up to a GFA of approximately 213,383 sq ft.
Based on the guide price, the land rate works out to about S$2,595 per sq ft per plot ratio (psf ppr). Taking into consideration the seven per cent bonus gross floor area for balconies, the land price works out to about S$2,509 psf ppr.
Assuming an average apartment size of 100 sq m, the site can accommodate up to 196 dwelling units, said marketing agent CBRE.
HighPoint currently comprises 57 apartments and two penthouses. More than 80 per cent of the owners have signed the collective sale agreement.
The development is within walking distance of ION Orchard, Paragon and Mount Elizabeth Hospital; nearby schools include Anglo-Chinese Junior School and the Orchard campus of Chatsworth International School.
The public tender for the site closes on Feb 26 at 3pm.
Galven Tan, executive director (capital markets) at CBRE, said: "The potential 36-storey height will offer panoramic views, featuring the lush greenery of Goodwood Hill and the CBD skyline.
"Its exclusivity presents immense potential to create a one-of-a-kind Orchard Road landmark which will attract ultra-premium developers. Overall supply in the ultra-luxurious segment of the market remains very limited, and we believe the interest and pricing will continue to hold firm."
The site piqued the interest of some Hong Kong-based foreign developers looking to invest in Singapore during its pre-marketing exercise, he told The Business Times.
"The site has the attributes which tick the boxes on their checklists to develop a premium product in line with their branding," he added.
Other developments in the same district that have been put up for collective sale include the 99-year leasehold Leonie Gardens, which is going at a reserve price of S$800 million.
The freehold Cavenagh Gardens is taking another shot at selling en bloc at a reserve price of S$480 million.
Meanwhile, Horizon Towers on Leonie Hill Road last week relaunched its collective sale tender at a S$1.1 billion reserve price, unchanged from its attempt last July. That round closed in September without attracting any bids.
The condominium was previously put up for collective sale for S$500 million around 2007, but that sale to a consortium led by Hotel Properties Limited fell through after a dispute among the owners. Eventually, the Court of Appeal found that the sales process was improperly handled.
This time around, JLL is its sole marketing agent.
Commenting on the Horizon Towers and HighPoint sites, JLL's executive director of capital markets (Singapore), Tan Hong Boon, said: "Both are prime sites, with their own attributes. Horizon Towers has more scale in terms of physical size and quantum, so the economies of scale are better."
But he pointed out that HighPoint is a freehold site, against Horizon Towers' 99-year tenure.
He further noted that there could be some overlap in potential developers looking at those two sites.
Horizon Towers' S$1.1 billion reserve price translates to a land rate of about S$1,977 psf ppr after factoring in the lease top-up premium, which is estimated to be some S$228 million, or S$1,797 psf ppr inclusive of the 10 per cent bonus gross floor area (GFA).
There is no development charge or differential premium for intensified use of the 1.9 ha site.
The estate, built in the late 1970s, is zoned "residential" in the 2014 Master Plan with an allowable height of up to 36 storeys.
It is about 150m from the upcoming Great World MRT station, and offers dual road accesses to Leonie Hill and Leonie Hill Road.
Other sites in District 9 which were put up for en bloc sale last year and for which there were no takers include The Regalia in River Valley and Elizabeth Tower in Mount Elizabeth Road.