Demand for Prime Office Space Lifts
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PROPERTY PERSONALISED MCI (P) 136/08/2017 PPS 1519/09/2012 (022805) Visit EdgeProp.sg to ˎ nd properties, research market trends and read the latest news The week of January 22, 2018 | ISSUE 814-35 Market Trends Spotlight Done Deals Gains and Losses New-home sales Terraced house on Watten Interest picks up in Helios Residences unit highest since 2013 Drive going for $5.68 mil Robertson Quay sold at $1.39 mil loss EP4 EP6 EP14 EP16 SAMUEL ISAAC CHUA/THE EDGE SINGAPORE CHUA/THE SAMUEL ISAAC Demand for prime office space lifts off Brighter economic prospects have led to increased demand for premium offi ce space, with giant schemes such as Marina One, DUO, Paya Lebar Quarter and Frasers Tower benefi ting from a pickup in activity. See our Cover Story on Pages 10 to 12. Marina One EP2 • EDGEPROP | JANUARY 22, 2018 EN BLOC WATCH EDITORIAL Hollandia up for collective sale at $163 mil EDITOR | The 48-unit Hollandia (right) was put up for collec- Cecilia Chow tive sale by tender on Jan 17 for $163.15 million. The KNIGHT FRANK SAVILLS SINGAPORE SAVILLS HEAD OF RESEARCH | price translates into a land rate of $1,515 psf per plot Feily Sofi an ratio (ppr), according to sole marketing agent Sav- DEPUTY EDITOR | Lin Zhiqin WRITERS | Angela Teo, Timothy Tay ills Singapore. DIGITAL WRITER | Fiona Ho Built in the 1980s, the development in prime District 10 sits on a 53,505 sq ft, freehold site at the junction COPY-EDITING DESK | Elaine Lim, Evelyn Tung, of Holland Road and Queensway. The site is zoned Chew Ru Ju, Shanthi Murugiah for residential use under the 2014 Master Plan, and PHOTO EDITOR | has a gross plot ratio of 1.6 with a 12-storey height Samuel Isaac Chua limit. The site can therefore be redeveloped into a PHOTOGRAPHER | Albert Chua EDITORIAL COORDINATOR | new development with a gross floor area of 107,688 Yen Tan sq ft. Owing to the high development baseline, no de- DESIGN DESK | velopment charge is payable even for the additional Tan Siew Ching, Christine Ong, Monica Lim, 10% GFA for balconies, says Savills. All the owners have given their approval for the cony GFA and a proposed plot ratio of 3.08, the land Tun Mohd Zafi an Mohd Za’abah The tender for Hollandia closes on Feb 28. sale, thus, the sale need not obtain Strata Titles rate works out to $1,861 psf ppr, subject to approval. Board approval. A successful purchaser can take The high-rise development is situated on a 95,442 ADVERTISING + MARKETING En-bloc sale of Balmoral Gardens at $92 mil possession of the site upon the end of the vacant sq ft site, and comprises three adjoining residential ADVERTISING SALES The 37-year-old Balmoral Gardens, located on Balmoral possession period to market and build the new de- blocks. The existing units at Dunearn Gardens range DIRECTOR, COMMERCIAL OPERATIONS | Road, has been put up for collective sale by tender, velopment, according to Huttons. The tender clos- from 807 sq ft for a two-bedder to 3,294 sq ft for a Cowie Tan with Huttons Asia as the exclusive marketing agent. es on Feb 7. penthouse. The Land Transport Authority has con- ASSOCIATE ACCOUNT DIRECTOR | Diana Lim The owners of Balmoral Gardens are expecting of- firmed that a Pre-Application Feasibility Study on ACCOUNT MANAGER | fers of above $92 million. The price translates into a Dunearn Gardens on the market for $489 mil traffic impact will not be required for the site. James Chua land rate of $1,872 psf ppr and includes an estimat- The 114-unit Dunearn Gardens (above, right) was put “We believe [Dunearn Gardens] is one of the last CIRCULATION ed $18.1 million development charge for inten sifying up for collective sale by tender on Jan 15 for $488.8 freehold high-rise residential development sites with- DIRECTOR | Victor The the land use to the maximum GFA. An application to million. Including a development charge of $35.7 in 100m of the Newton MRT station,” says Ian Loh, EXECUTIVE | URA has been submitted to establish the amount of million, this translates into a land rate of $1,962 psf executive director and head of investment and capital Malliga Muthusamy, Ashikin Kader development charge payable. ppr, according to sole marketing agent Knight Frank. markets at Knight Frank Singapore. With the current CORPORATE The existing Balmoral Gardens is a freehold 40- Under the 2014 Master Plan, the site is zoned for limited supply of new luxury residential projects, the CHIEF EXECUTIVE OFFICER | unit condominium occupying a 36,752 sq ft plot. The residential use with a gross plot ratio of 2.8. The re- new development is likely to be highly sought after Bernard Tong site has a plot ratio of 1.6 and a height limit of up to developed site may have a maximum permissible GFA by homebuyers and investors, says Loh. PUBLISHER 12 storeys. It is zoned for residential use under the of 267,239 sq ft, yielding 354 new residential units of The tender closes on Feb 13. — Compiled by The Edge Property Pte Ltd 2014 Master Plan. 753 sq ft each. With the inclusion of a 10% bonus bal- Timothy Tay E 150 Cecil Street #13-00 Singapore 069543 Tel: (65) 6232 8688 Fax: (65) 6232 8620 PRINTER PROPERTY BRIEFS KHL Printing Co Pte Ltd 57 Loyang Drive Singapore 508968 Tel: (65) 6543 2222 Fax: (65) 6545 3333 City Developments not extending development at the site of the former Shunfu Ville are PERMISSION AND Jan 26 deadline for Millennium & expected to be launched this year. REPRINTS Copthorne Hotels offer Material in The Edge Property City Developments says it is not extending its may not be reproduced in any form without the written Jan 26 deadline for its offer to privatise Millennium permission of the publisher & Copthorne Hotels. The acceptance is conditioned KNIGHT FRANK on CDL’s receiving acceptances of the final offer of SAMUEL ISAAC CHUA/THE EDGE SINGAPORE CHUA/THE SAMUEL ISAAC We welcome your comments more than 50% of M&C shares. and criticism: propertyeditor.sg@ Given that it already owns 65.2% of M&C, CDL bizedge.com believes there is little possibility of any third-party Pseudonyms are allowed but offeror emerging. “Thus, the final offer is likely to be please state your full name, the only liquidity event that offeree shareholders will address and contact number for have the opportunity to benefit from in the near to us to verify. medium term in an illiquid stock,” it says. CDL adds that the final offer creates a period of uncertainty, which is in the interests of neither the offeree nor the group. In particular, CDL believes that the full offeree board should be given time to consid- er the offeree’s medium-term investment needs and capital distribution policy before announcing its pre- Manhattan project 125 Greenwich Street liminary results for the year ended Dec 31, 2017, due launches in Singapore to be released in February 2018, with clarity on the Knight Frank Singapore will be exhibiting 125 Green- ownership structure and listing status. wich Street (above), a new 88-storey project in lower This is because M&C faces multiple challenges and Manhattan, New York City, at the Hilton Singapore a competitive landscape, requiring significant capital over the weekend of Jan 20 and 21. investment. Last December, CDL raised its offer price Located one block from One World Trade Centre to 620 pence a share, up from 552.5 pence earlier. The and the Oculus train station, the development is sur- Far East H-REIT to acquire Oasia Hotel final offer represents a premium of 36.3% to the clos- rounded by panoramic views of the Hudson River, the Downtown for $210 mil ing price of M&C shares of 455 pence on Oct 6, the Statue of Liberty and the World Trade Centre Com- Far East Hospitality Real Estate Investment Trust (Far last business day before the start of the offer period. plex, says Knight Frank. The 273-unit condo at 125 East H-REIT) has announced its intention to acquire The first closing date remains 1pm (London time) Greenwich Street has a mix of studios and three-bed- Oasia Hotel Downtown (above) for $210 million. The on Jan 23. — By Lee Pang Chuan room apartments, as well as penthouses. Prices of seller is Far East SOHO, a member of the Far East Or- units range from US$1.22 million ($1.69 million) for ganization group of companies. The purchase con- Qingjian Realty tops developer sales in 2017 a 418 sq ft studio to US$12.75 million for a 3,150 sq sideration was negotiated on a willing buyer-willing Among property developers, Qingjian Realty (South ft penthouse. seller basis. The amount is at the lower end of two Pacific) Group is said to have sold the highest num- The condo features an exposed concrete column independent valuations by Knight Frank and Savills ber of new homes, recording a total of 1,216 units. that runs throughout the height of the building, as Valuation, says Far East H-REIT. The property has 65 The figure includes both executive condos and private well as a curved glass façade. This structural solution years left on its lease. residential projects. Last year, Qingjian also chalked facilitates a nearly column-free interior for flexible The 314-room Oasia Hotel is part of a 27-storey up the highest sales of ECs, with a total of 923 units.