CNA : Industrial building at Jalan Ampas sold for S$27.5m in first enbloc sale this year

Industrial building at Jalan Ampas sold for S$27.5m in first enbloc sale this year
By Millet Enriquez, Channel NewsAsia | Posted: 03 February 2010 2249 hrs

SINGAPORE : The property collective sale market got an early boost following the sale of the freehold three-storey industrial terrace factory building at No 6 Jalan Ampas, off Balestier Road.

The property was sold for S$27.5 million to a private developer, said to be an experienced player in the industrial property sector. This will be its first foray in residential development.

This transaction is also the first enbloc sale completed this year.

Based on the selling price and an estimated development charge of $18.7 million for the re-zoning of the site to residential use and a gross plot ratio of 2.8, it works out to be about $593 per square foot per plot ratio.

The three-storey strata-titled industrial factory building sits on a land measuring 27,838 square feet.

Upon re-zoning, the site may be redeveloped into a freehold high-rise residential development with a gross floor area of approximately 77,948 square foot.

Analysts said that the completed development on the site could be sold at a price range of about $1,100 psf to $1,200 psf, after factoring in profits as well as marketing and financing costs.

The owners of the four factory units launched the collective sale after the Urban Redevelopment Authority announced in 2008 that it was prepared to consider re-zoning for residential use.

Tender for the property closed December 10 last year and it had attracted five offers and five other interests from developers, said Tan Hong Boon, deputy managing director of Credo Real Estate.

Credo is also the marketing agent for the enbloc sale.

"Balestier has over the years emerged as a popular residential district that enjoys the convenience of being geographically central and having a whole host of commercial amenities along the main road," said Tan.

The site is near Shaw Plaza that houses a major supermarket, multiplex cinemas, banks and a host of other commercial establishments. - CNA /ls