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Selangor Dredging buys freehold site in Draycott Park for S$72m
MALAYSIA-LISTED developer Selangor Dredging Berhad, through its indirect 50 per cent associate Champsworth Development Pte Ltd, has acquired a freehold site in Singapore's prime District 10 for S$72 million.
The purchase of 1 Draycott Park from a Singaporean couple reflects a land rate of about S$1,787 per square foot per plot ratio (psf ppr), inclusive of an estimated development charge of about S$15.3 million.
Savills Singapore, which brokered the deal, estimated the breakeven price for the new development to be between S$2,700 and S$2,800 psf, depending on the quality of the end-product.
In a filing with Bursa Malaysia, Selangor Dredging said it planned to develop exclusive mid-rise apartments on the land, which measures 17,442 square feet.
"This transaction signals to the market that the high-end non-landed residential segment has moved on to the next phase of price recovery," said Suzie Mok, senior director of investment sales at Savills Singapore.
"The sale represents an exciting opportunity for the developer to turn a prized asset underpinned by its excellent location into luxurious compact- sized apartments targeting the well-heeled single professionals, Dinks (dual income, no kids), young families and investors who covet a piece of property in the posh locale," she added.
This marks the seventh property that Selangor Dredging has purchased in Singapore and follows closely on its acquisition of a freehold site in Serangoon last December.
The company said the purchase consideration and development of the property would be 70 per cent funded by bank borrowings by Champsworth Development and the rest by internally generated funds.
"In view of the strategic location of the property, Selangor Dredging is optimistic on the prospects of the proposed development to be undertaken on the property," the company added.
Nestled in the upscale residential enclave of Claymore Hill and Ardmore Park, the land parcel is currently occupied by a seven-storey block. The site is within minutes' walk to Scotts Road and Orchard Road, and is close to various country clubs, Goodwood Park Hotel as well as Shangri-La Hotel.
Selangor Dredging in December bought a freehold land spanning 31,705 sq ft at Serangoon Road from National Aerated Water Company for S$47 million.
As the two-storey disused bottling factory on the site is considered to be one of the last few vestiges from Singapore's industrial past, the Urban Redevelopment Authority said in December that it was engaging the building owner to explore the possibility of conserving the building.
Selangor Dredging told the Malaysian media on Thursday that it is looking to launch the projects in Draycott Park and Serangoon Road within the first half of 2018.