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Two more collective sale tenders launched
THE public tenders for two collective sale sites were launched on Monday, reflecting continued interest among property owners to jump onto the bandwagon.
Eunos Mansion, a freehold residential site located along Bedok Reservoir Road and Jalan Eunos, has been put up for collective sale with a reserve price of S$218 million.
This translates to a land rate of S$1,219 per square foot per plot ratio (psf ppr), said its marketing agent Cushman & Wakefield, which secured the 80 per cent mandate among owners to launch the site for public tender.
Separately, ICB Shopping Centre, a freehold mixed-use development off Upper Serangoon Road was launched with a reserve price of S$60 million, which works out to about S$1,401 psf ppr. This marks its second attempt at a collective sale, with newly appointed marketing agent CBRE.
There is a development charge of about S$5.37 million payable to intensify the land use, CBRE said.
The tender for ICB Shopping Centre closes on Feb 28 while that for Eunos Mansion closes on March 7.
These collective sale tenders are coming onstream on the back of last year's revival that saw 28 residential sites and three commercial or industrial sites sold for a total of S$8.73 billion, compared to only three residential sites sold for S$1 billion in 2016.
But there are six other collective sale sites launched since December that have not concluded after their tenders closed. They are Cairnhill Mansions, Pearlbank Apartments, Riviera Point, Casa Meyfort, Kovan Lodge and Cairnhill Heights. According to laws governing collective sales, the owners may enter into a private treaty contract with a buyer within 10 weeks from the close of the public tender.
Christina Sim, director of capital markets at Cushman & Wakefield, felt that Eunos Mansion offers an excellent opportunity for the development of a mid-sized condominium project to complement the up and coming Paya Lebar Regional Centre and the business parks located in the mature estates of Eunos and Bedok Reservoir.
The 11-storey development of Eunos Mansion built in the mid-1980s now houses 107 residential units. Assuming a building efficiency of 90 per cent, the site can be redeveloped into a residential development comprising about 165 units, based on an average unit size of 100 sq m per unit.
Spanning a land area of 10,380.4 sq m (111,453 sq ft), the site has a plot ratio of 1.6 and is subject to a building height control of up to 12 storeys under Master Plan 2014, which works out to an allowable maximum gross floor area (GFA) of 16,608.64 sq m (178,774 sq ft).
No development charge is payable for the Eunos Mansion site even if the additional 10 per cent GFA for balconies is included, as the development baseline of the existing development is higher than the maximum allowable intensity in the current Master Plan.
As for ICB Shopping Centre, CBRE director for capital markets Galven Tan said he expects the rare opportunity to develop a mixed-use project to attract interest from a diverse pool of potential buyers who are eager to participate in the growth of the area. "The certainty of the deal with 100 per cent owners' consent is another selling point."
Based on the 2014 Masterplan 2014, the 15,547 sq ft site is zoned for "commercial and residential" with plot ratio 3.0. CBRE said that the regular-shaped plot is about 50m in depth, which facilitates flexibility in the planning of the new development.