Five freehold projects in bid to sell as single lot

Five freehold projects in bid to sell as single lot
By Joyce Teo, Property Correspondent

OWNERS of five fairly small adjoining freehold residential developments in Mergui Road have banded together to sell the properties as one medium-sized lot for up to $125 million.
The properties - Norfolk Court, Mergui Lodge, Northern Mansion, Mergui Court and The Mergui - are located near Rangoon Road and Moulmein Road.

They are single apartment blocks and sit on relatively small plots of land.

But when combined, along with small pieces of state land in between, they will form a land area of about 93,355 sq ft.

This would allow the buyer to build a medium-scale condominium of up to 30 storeys and about 200 units, said Credo Real Estate.

The company yesterday put the properties up for sale through an expression of interest exercise, with an indicative price range of $115 million to $125 million.
This works out to between $488 per sq ft (psf) and $526 psf of potential gross floor area, including development charges of about $474,000 and a premium for the state land.

At this price, the buyer should be able to break even at about $800 psf to $850 psf, said Credo Real Estate’s executive director, Ms Yong Choon Fah.

In Mergui Road, Fragrance Properties’ new 60-unit freehold development Pristine Heights is selling well, with the 37 units sold in June achieving a median price of $981 psf.

Of the five developments, only Mergui Lodge does not yet have the required approval level of 80 per cent by share value to go ahead with a sale.

Mergui Lodge has only nine units, Northern Mansion and The Mergui have 18 units each, Norfolk Court has 20 units, while Mergui Court has 23 units.

Source : Straits Times - 02 Aug 2007

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