A REDEVELOPMENT site in Katong has been put up for tender by expression of interest.
The 22,800 sq ft 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 it is acting for motivated sellers, and offers in the region of $60 million are expected. This works out to about $941 per sq ft per plot ratio (psf ppr) before factoring in 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 the 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 apartments.
Depending on the proposed design of the building, some of the residential units could potentially enjoy partial sea views, said Ms Yong.
"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 redevelopment site is located about 150m from the future Amber MRT Station, which is expected to be operational in 2023.
There are currently several vacant old houses 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 at 2.30pm.