SINGAPORE - A subsidiary of Malaysian property developer Selangor Dredging has purchased a parcel of prime freehold land in the Orchard area.
Champsworth Development, which is 50 per cent owned by Selangor Dredging, paid S$72 million for 1 Draycott Park. This translates to a price of approximately S$1,787 per sq ft per plot ratio, inclusive of development charges for the 17,442 sq ft site. In a filing with Bursa Malaysia, the developer said it was considering the potential to build exclusive mid-rise apartments.
There is currently a seven-storey block on the site, which was built in the 1990s. It comprises eight apartments ranging between 860 sq ft and 6,200 sq ft. The site is zoned for residential use with a plot ratio of 2.8, which means that it can be re-developed to a height limit of 36 storeys.
The site is in the residential enclave of Claymore Hill and Ardmore Ark, and is near the Tanglin Club, American Club and Goodwood Park Hotel. It also within walking distance to Orchard Road.
The developer said the acquisition will be funded by a combination of internal funds and bank borrowings.
Ms Suzie Mok, senior director of investment sales at Savills Singapore, who brokered the deal, said: "This transaction signals to the market that the high-end non-landed residential segment has moved on to the next phase of price recovery."
The break-even price for the new development is expected to range between S$2,700 and S$2,800 psf, said Savills in a press release on Thursday (June 8).