BT : Katong apts put up for collective sale

Business Times - 18 Aug 2010

Katong apts put up for collective sale

Amber Glades and Robin Court hope to be third time lucky

By UMA SHANKARI

AMBER Glades, off Amber Road, and Robin Court, with an adjoining bungalow at Robin Drive, are being put up for collective sale - for the third time.

The 63-unit freehold Amber Glades was first offered for sale in October 2007 for $145 million or $1,345 per sq ft per plot ratio (psf ppr) including a development charge.

The project was re-launched in April 2008 at a lower price of $127 million, or $1,140 psf ppr including a development charge - 15 per cent cheaper than the first time around.

Now the sellers are hoping they will be third-time lucky. They are asking for $130 million. This translates to a land price of some $1,091 psf ppr - including a development charge of $7.5 million and assuming a developer will maximise the potential of the 10 per cent of extra gross floor area allowed for balcony space.

'With an evident pick-up in momentum for collective-sale sites, low interest rates and depleting land banks among developers, we are optimistic this corner plot will draw keen interest, particularly as it is in a part of Katong where many new projects have enjoyed good sales,' said Ho Eng Joo, executive director of investment sales at Colliers International, which is marketing the project.

The successful buyer can re-develop the site into a 22-storey residential project comprising some 150 units of 840 sq ft each, or 84 units of 1,500 sq ft each, Colliers said.

It is a similar story for the 15-unit Robin Court and the adjoining No 1 Robin Drive, which were put up for sale with a third property in late 2007 at a price of $1,500-$1,600 psf ppr.

After there were no takers, the two properties were re-launched in July 2008 for $58-$60 million, or $964-$996 psf ppr - a 40 per cent cut in the asking price. But there were still no takers then, in the midst of the global financial crisis.

Now, the majority owners of Robin Court and the sole owner of No 1 Robin Drive are asking for $66 million to $74 million, or $1,046-$1,172 psf ppr.

This pricing assumes the developer would maximise the potential of the 10 per cent of extra gross floor area allowable for balcony space, and the remnant state land may be purchased.

'We believe this offering will be hot,' said Karamjit Singh, managing director of Credo Real Estate, which is marketing the project. 'This is a District 10 site with a prestigious No 1 Robin Drive address. It enjoys the convenience of a train station a stone's throw away, and is within walking distance of the most popular primary schools. On top of that, the sellers' expectations are very reasonable.'

About 60 apartment units of an average size of 1,000 sq ft - depending on layout and configuration - can be built on the plot, Credo said. Mr Singh reckons a developer would break even around $1,600-$1,750 psf.

Separately, Jones Lang LaSalle (JLL) has put up for collective sale by tender a row of 13 freehold shophouses in Owen Road. The indicative price is around $43 million - or $930 psf ppr - subject to the tender process.

All the owners have agreed to the sale of the 15,388 sq ft site, which was zoned 'residential with commercial at first storey'. The plot could potentially yield 36 apartment units of an average size of 1,000 sq ft and 11 commercial units of an average size of 800 sq ft each, JLL said.

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District 10 site: The majority owners of Robin Court and the sole owner of No 1 Robin Drive are asking for $66 million to $74 million, or $1,046-$1,172 psf ppr