SINGAPORE - A 22,800-square-foot redevelopment site located in Katong has been put up for tender by expression of interest.
The freehold site, located at 12/A/B/C/D Amber Road, is zoned "residential" under the 2008 Master Plan, and has an allowable gross plot ratio (GPR) of 2.8.
JLL, the marketing agent for the site, said that the sellers are motivated to sell, and are expecting offers in the region of $60 million for the property, which works out to about $941 per square foot per plot ratio before factoring development charges.
Said Ms Yong Choon Fah, JLL's national director of capital markets: "For a redevelopment up to GPR 2.8, the development charges are estimated to be in the region of $18.47 million. A land price of $60 million would hence work out to a land rate in the region of $1,230 psf ppr.:
She said developer could look towards building a total gross floor area (GFA) of about 63,820 sq ft on the site, and may be able to accommodate up to 80 high-rise apartments. Depending on the proposed design of the building, some of the residential units could potentially enjoy partial sea-views, said Ms Yong.
She added: "A redevelopment project of this scale could appeal to the smaller or mid-sized developers, given that the total land investment quantum, including development charges, would be below $100 million. Given the relatively low quantum involved, a Singaporean developer or purchaser could choose to acquire this freehold site to add to their land-bank for future development if they have no immediate plans to build."
JLL said the sellers decided to initiate this divestment exercise in the light of the news of the recent tender launch of Amber Park.
The subject site is located approximately 150 metres from the future Amber MRT Station, which is expected to be operational in 2023. There are currently several vacant old houses located on the site. As these houses all belong to a single vendor, Strata Titles Board approval is not required for the purchase.
The tender closes on July 28, 2015, at 2.30pm.